The International Air Transport Association (IATA) has produced an online tool design which it is hoped will reduce the over-payments for aircraft parts called MRO SmartHub. Launched on Monday, it is designed to make an assessment of fair market value (FMV) more accurate, the platform will allow subscribing airlines and MRO providers to openly list items to buy and sell online.
The global MRO market is estimated to be worth a total of US$81.9 million annually. The IATA said it expects MRO SmartHub to save 10-15% from material costs through better efficiency and more accurate assessments of FMV.
Additional benefits are the ability to value parts better within the inventory and offer greater confidence in planning and procuring aircraft components and parts to procure and use and offer greater trust between buyers and sellers.
IATA has stated that the lack of a central reference for the value of surplus aircraft parts or upfront visibility of a part’s cost and availability leads to challenges associated with accurately assessing the value of inventories, reselling surplus material, or estimating the cost and timing of repairs.
“The market really needs this,” said Lufthansa Technik head of group purchasing surplus Fabricio La-Banca. “By creating greater transparency, it will offer fairer market values. It will re-balance the aviation value chain and help airlines save money.”