13 March 2014 | Stratos has released a White Paper on the effects the engine aftermarket is having on aircraft investors. Speednews and Airfinance Journal have published this paper, the summary is as follows:
Over the past 30-40 years, independent engine servicers have enjoyed a carte blanche in disassembling and maintaining engines. This ‘free for all’ has resulted in a highly competitive market and thus lead to substantially cheaper engine maintenance, albeit with implications for intrinsic maintenance value and, to a certain extent, reliability. This era appears to be coming to an abrupt end with profound implications for aircraft investors in particular. Engine OEMs are rapidly gaining market share with their all-inclusive support packages. The complexities of these packages combined with their tightening grip on all areas of the aftermarket will, in our view, result in the collapse of those second tier investors and independent MRO’s who don’t adequately adapt their business models to meet these challenges.
The full white paper can be downloaded below.
Click here to download our white paper : Engine Aftermarket Affecting Investors (0.5Mb .pdf file, may take a short time to download: click ‘Save a Copy’ if the file does not display correctly on your browser)