Jetrader - Summer 2016 - 15
the Secondhand Market
aircraft dismantled per year. Again, the aircraft being dismantled are not very old, it's
not the 25 to 30-year-old aircraft, it's the
18 to 25-years-old [aircraft], and for this
reason, a lot of parts can be re-certified
and resold. In fact, in most cases it's more
profitable to dismantle your aircraft and
sell the parts than to sell your aircraft as a
whole. It sounds crazy, but it makes sense
economically."
As far as supply and demand, Celikel
and Hervé say there are still large fleets
of Boeing 737 classic and Airbus A320
in field, and there's a demand for these
parts, but hundreds of these aircraft have
already been dismantled. This leaves plenty
of serviceable, used parts, meaning costs
are good for buyers, not so good for sellers. But, if you happen to have the good
fortune of being a dismantler or an aircraft
broker with used parts from Boeing's Next
Generation or the latest Airbus A320 model,
you are sure to sell these parts for a very
good price, they say. This is because the
industry is just beginning to dismantle
these models - these aircraft are in the
Airlines have to do maintenance every day,
they have to do repairs every day, they have to
find these parts and they can reduce their costs
70 to 80 percent by taking advantage of the
secondhand option.
field, but not many have been dismantled,
so parts are in high demand and fetch a
high dollar.
Mark Gregory has a 737NG. He also has
an Embraer 170 in the hangar that is only
10 or 11-years-old, so demand for its parts
is also quite high. The managing director
of Air Salvage International, Gregory has
been in the aircraft disassembly business
for more than 20 years. His company has
dismantled in excess of 650 aircraft. Air
Salvage International is also responsible
for 14 percent of the global disassembly
market annually.
Gregory has seen a drop in 737 classics -
five years ago he would see 20 or so a year,
last year he saw two, this year he hasn't seen
any - but he predicts a resurgence ahead.
"The 737 classic market is starting to pick up
a little bit and I would imagine the reason
why is because fuel prices are dropping,"
he says. "Why do you want to buy a new
generation aircraft and spend $7 million or
$8 million when you can spend $1.5 million
and operate your old classic?"
Gregory describes the remarketing world
as cyclical, saying, "We work with the lessors and we see these lines where an aircraft at the start is too valuable to break
for spare parts. Then it will flip the other
way, where, if you don't break it to spare
parts, it go any further across that line and
you will be losing money.
So there's a time when it's best to dismantle for spare parts, because you're
going to get more money for the aircraft
Jetrader * Summer 2016 15
Jetrader - Summer 2016
Table of Contents for the Digital Edition of Jetrader - Summer 2016
A Message from the President
Calendar/News
O&A: Tom Doxey, Allegiant
More Used Parts Take to the Air, Recycled Through the Secondhand Market
Alliances - Made to be Broken
The Balancing Act - Record Profits and Uncertain Futures: Reflections from ISTAT Americas 2016
Growth in ISTAT Asia Continues
Securing the Future: A Profile on ISTAT Foundation Student Andre Fansi
Turkey: Drones Now and in the Future
Avation History
Aircraft Appraisals
ISTAT Foundation
Advertiser.com
Advertiser Index
Jetrader - Summer 2016 - cover1
Jetrader - Summer 2016 - cover2
Jetrader - Summer 2016 - 3
Jetrader - Summer 2016 - 4
Jetrader - Summer 2016 - 5
Jetrader - Summer 2016 - 6
Jetrader - Summer 2016 - A Message from the President
Jetrader - Summer 2016 - 8
Jetrader - Summer 2016 - 9
Jetrader - Summer 2016 - Calendar/News
Jetrader - Summer 2016 - 11
Jetrader - Summer 2016 - O&A: Tom Doxey, Allegiant
Jetrader - Summer 2016 - 13
Jetrader - Summer 2016 - More Used Parts Take to the Air, Recycled Through the Secondhand Market
Jetrader - Summer 2016 - 15
Jetrader - Summer 2016 - 16
Jetrader - Summer 2016 - 17
Jetrader - Summer 2016 - Alliances - Made to be Broken
Jetrader - Summer 2016 - 19
Jetrader - Summer 2016 - The Balancing Act - Record Profits and Uncertain Futures: Reflections from ISTAT Americas 2016
Jetrader - Summer 2016 - 21
Jetrader - Summer 2016 - 22
Jetrader - Summer 2016 - 23
Jetrader - Summer 2016 - 24
Jetrader - Summer 2016 - 25
Jetrader - Summer 2016 - 26
Jetrader - Summer 2016 - Growth in ISTAT Asia Continues
Jetrader - Summer 2016 - 28
Jetrader - Summer 2016 - 29
Jetrader - Summer 2016 - 30
Jetrader - Summer 2016 - 31
Jetrader - Summer 2016 - 32
Jetrader - Summer 2016 - Securing the Future: A Profile on ISTAT Foundation Student Andre Fansi
Jetrader - Summer 2016 - 34
Jetrader - Summer 2016 - 35
Jetrader - Summer 2016 - 36
Jetrader - Summer 2016 - Turkey: Drones Now and in the Future
Jetrader - Summer 2016 - 38
Jetrader - Summer 2016 - 39
Jetrader - Summer 2016 - Avation History
Jetrader - Summer 2016 - 41
Jetrader - Summer 2016 - 42
Jetrader - Summer 2016 - 43
Jetrader - Summer 2016 - 44
Jetrader - Summer 2016 - Aircraft Appraisals
Jetrader - Summer 2016 - 46
Jetrader - Summer 2016 - 47
Jetrader - Summer 2016 - ISTAT Foundation
Jetrader - Summer 2016 - 49
Jetrader - Summer 2016 - 50
Jetrader - Summer 2016 - 51
Jetrader - Summer 2016 - 52
Jetrader - Summer 2016 - Advertiser.com
Jetrader - Summer 2016 - Advertiser Index
Jetrader - Summer 2016 - cover3
Jetrader - Summer 2016 - cover4
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