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Aircraft Parts Flood Market9/13/2020 Image: Yaroslav Muzychenko on Unsplash
Airline travel has, you know, slowed. This means carriers are looking to accelerate the retirement of older birds and have reached out to parts companies for bids to dismantle their planes. The scavengers then keep the inventory of parts to sell for repairs throughout the world. As the parts supply has increased, the demand has decreased (fewer planes anyway) and prices are at risk. What's the play? Hold off as long possible for buying parts as prices fall. Just in time is less of a consideration now as the conversation of quoting "price and availability" has changed. Manufacturers will endure this sympathy pain with their carrier clients. |