Sun, Apr 27, 2014
New Study Released By The Aircraft Fleet Recycling Association, TeamSAI
The total global market value of the aircraft dismantling services market is set to reach $80 million in 2014, according to a new industry study by top aviation consultant TeamSAI Consulting, conducted in partnership with the Aircraft Fleet Recycling Association (AFRA).
A rapid increase in the number of aircraft reaching the end of their economic life presents considerable opportunities for the aircraft dismantling and recycling industry, according to the study. Industry operators predict that between 1,200 and 1,800 aircraft will be dismantled and torn down over the next three years.
It also found that close to $3.2 billion worth of harvested parts will be made available to the commercial aviation supply chain in the form of aftermarket parts annually, offering around 50 per cent savings compared to new OEMs parts.
“This substantive piece of research confirms that our industry is both vibrant and growing,” said Martin Fraissignes, AFRA's Executive Director.
“As our sector grows, it is increasingly clear that it is not just about having enough dismantling and recycling capacity, it must be the right capacity. Hence AFRA's commitment to ensuring that as many companies as possible agree to follow our Best Management Practice Guide and secure AFRA Accreditation so that aircraft owners know with certainty that their assets will be dealt with in the most environmentally responsible manner. It is important that the good practices we have developed are adopted by new entrants as well as established operators in the industry.
“This study underscored the impact that currently high levels of aircraft retirements is having on the aftermarket supply chain, especially for mature fleets', said David A. Marcontell, TeamSAI's President & COO. 'Put differently, there are $3.2 billion worth of alternatives to new parts or expensive repairs out there, undoubtedly having a material impact to OEM's, MRO's, and aftermarket parts distributors alike.” he added.
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