COOLIDGE, Ariz. — From engines to landing gear, the hunt for plane parts continues as airlines prep their jets with new planes for swarms of summer travelers Boeing and Airbus are still in short supply.
The search for parts brings some plane owners here, where older retired planes are dismantled for parts to be prepared for flight on other planes or repurposed entirely. Some pieces can be turned into high-end furniture, such as: B. $42,000 desks. What’s left can be crushed to scrap and melted down.
Until they are disassembled, the planes are stored in arid climates like the Arizona desert to avoid damaging weather and humidity.
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An Airbus plane with parts removed in Coolidge, Arizona.
Leslie Josephs | CNBC
According to Mike Stengel, a director at AeroDynamic Advisory, the used parts business was worth about $3 billion to $5 billion before the pandemic. It’s currently experiencing a boom in global aircraft maintenance, repair and overhaul, an industry expected to grow 22% to $94 billion this year, consultancy Oliver Wyman estimated in a February report.
The current demand for aircraft parts is a result of the industry’s sharp fluctuations in demand as a result of the Covid pandemic. In an effort to cut costs as demand collapsed due to travel restrictions, airlines rushed to retire planes only to need planes later when demand returned. Airlines were also deferring maintenance and prioritizing the use of engines with more time remaining.
Meanwhile, Boeing and Airbus are still trying to stabilize their supply chains and train workers after thousands left the industry during the onset of the pandemic.
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One challenge is to find raw materials for airplanes. Travel demand is recovering – the International Air Transport Association said last week that global air travel has recovered nearly 85% to 2019 levels. In the US, this point has already been passed.
With deliveries of new jets behind schedule, airlines are holding onto planes longer, repairing or overhauling them, increasing demand for parts and labor.
Technicians remove an engine cover from a decommissioned aircraft in Marana, Arizona
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Last year, 273 commercial aircraft were retired, the fewest in nearly two decades and half the number in 2019, Aerodynamic’s Stengel said, citing data from the Center for Aviation.
“There are supply chain issues right now across the aviation industry where these extremely valuable parts cannot be manufactured quickly enough from often rare and precious materials,” said Lee McConnellogue, managing director of ecube, a UK-based company at the “End-of-Life ” services for aircraft. “So airlines and maintenance companies alike need to find an alternative source that isn’t brand new.”
A used aircraft is dismantled in Marana, Arizona.
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Ecube has recently expanded and opened a facility here, adding to its portfolio which includes Spain and Wales. The new location features a crush pad on which old planes are shredded before being hauled away.
“Engine shops are really busy,” said Rob Morris, global consulting director at aeronautical data company Cirium. “Used material is in demand.”
Technicians remove an engine cover from a decommissioned aircraft in Marana, Arizona
Leslie Josephs/CNBC
Morris said this is also driving up engine rental prices. For example, a CFM56 engine that powers some older models of the Boeing 737 is renting for $65,000 a month, up from $55,000 a month last year.
Airbus A320 landing gear at a repair shop in Marana, Arizona.
Leslie Josephs | CNBC
However, Boeing and Airbus executives plan to increase the pace of production and aircraft deliveries this year, which could boost aircraft retirements and in turn increase the supply of used parts and lower the price.
“There are a few stars that need to align for the retirement floodgates to accelerate, and a big one is Airbus and Boeing’s ability to consistently deliver planes on schedule — and for airlines to believe them,” said stem.
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