MROs Adapt Parts Sourcing Amid Aging Fleets, Volatile Markets

Technician working on component
Credit: Lufthansa Technik

The extended operational life of commercial aircraft, which has placed capacity pressures on MROs, has thrust parts sourcing into the spotlight as a critical strategic imperative for MRO providers.

Considering that aircraft are staying in service longer than planned, MROs are proactively diversifying their approaches to parts procurement to meet the unexpected demand for maintenance services, particularly for older aircraft. This evolving landscape underscores a fundamental shift in how MROs secure the components vital for keeping aircraft in the air.

MROs are diversifying their parts sourcing, and this proactive stance is a direct response to current industry dynamics and the ongoing volatility within the supply chain.

Lufthansa Technik holds over $2.3 billion in aircraft components serving a global customer base, according to Marcus Motschenbacher, vice president and chief operations officer for aircraft maintenance service. He says Lufthansa Technik has a strong position in parts supply, but it continues to push forward with ongoing improvements.

A key aftermarket development is increased used serviceable material (USM) trading and more extensive use of aircraft teardowns. Lufthansa Technik announced in April that it would expand its direct sales of USM aircraft parts to airlines and operators, moving beyond just selling surplus parts to third-party traders. According to the company, this initiative directly addresses the rising demand and constrained supply in the aircraft parts market, offering a more efficient and cost-effective solution.

The sentiment is echoed across the MRO landscape. “Parts sourcing has become a critical risk management priority,” says Podins Kaspars, chief commercial officer at Job Air Technic. He reports that the company has diversified sourcing channels across OEMs, parts and consumable materials suppliers. "We are working more closely with lessors and teardown specialists to secure materials/components where lead times for new parts are especially long," he says, noting that this has helped Job Air Technic minimize aircraft ground time and improve turnaround predictability for heavy checks.

Managing Director Jan Kotka says Magnetic MRO has similar strategies. “We are actively diversifying our parts sourcing, too,” he says. To manage risks in the supply chain, the company has added more suppliers, including regional ones, and it keeps a strategic stock of key parts in Tallinn, Estonia, and other locations.

Technology is also playing a role. “We are using digital tools and data to plan part requirements better and avoid delays," says Kotka. Magnetic works with over twenty strategic suppliers and utilizes several sourcing engines, including an artificial intelligence-based platform. “This approach enhances our ability to source material more broadly and efficiently, ensuring a robust supply chain,” he adds.

Juozas Lapeika, deputy CEO for base maintenance at FL Technics, recognizes parts sourcing as a critical bottleneck in reducing turnaround times. The company invests significant effort in predictive analytics to anticipate parts needs and actively seeks alternative suppliers to ensure a reliable and efficient supply chain.

Keith Mwanalushi

Keith Mwanalushi primarily writes about the global commercial aviation aftermarket and has more than 10 years of experience covering it. He is based in the UK.