| PMA's Strengths：Like LLCs |
| PMA is like LLCs in many perspectives. First, PMA parts bring direct savings to airlines by low prices from PMA supplier—Wencor saves airlines millions of dollars every year. Consequent competition brings indirect savings. OEM’s high price monopoly is broken by threat of competition. And indirect savings is often much greater than direct savings. Second, PMA parts are generally as reliable or more reliable than OEM parts. Third, PMA developers have the benefit of understanding the OEM’s short comings. Fourth, PMA developers often have newer materials, manufacturing methods and hold tighter tolerances due to the re-engineering process. Last but also important, generally PMA developers avoid major problem areas that AD’s or major service bulletins have been written against. |
| Current PMA Market |
| Demand for PMA parts begins with maintenance activity. In 2003, approximately $36 B was spent to maintain just over 16,000 commercial air transport aircraft (regional jets and larger). Engine maintenance accounted for the largest slice (35%) followed by line maintenance (22%), component maintenance (21%), airframe heavy maintenance (14%), and modifications (8%). What drives PMA parts demand? Line maintenance is too labor-intensive and modification too modest and fragmented to matter. But engine overhaul, component maintenance, and airframe heavy maintenance , the big three PMA markets generated just over $25 B in maintenance activity in 2003. And also, the steadily growing use of parts manufacturer approval (PMA) parts with continued consolidation and increased outsourcing of MRO activities began to define European MRO market over 2004. |
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| PMA in Asia |
| Asia will become one-third of the MRO market within a decade, and independent shops can’t ignore PMAs if they want to remain competitive. Bilateral agreements and education are helping remove barriers. Meanwhile, major Asia Pacific airlines also feeling severe cost pressures and increasing fuel price. The introduction of multiple low cost carriers is driving down prices and profits and outsourcing initiatives are gaining momentum. Therefore airlines are more open to sign PMA development contracts. Successful PMA companies are filling this need while lower tier PMA companies are being pushed through tier one companies more frequently. [Details] |
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| 8 Lessons Learned for PMA Partnering |
| 1. Partnerships |
5. Devote resource |
| 2. Entire Organization |
6. Stay involved (CAA) |
| 3. Start with easy stuffr future |
7. Operators—Control you |
| 4. Systems approach |
8. Suppliers– Fill global needs |
[Details] |
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