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COMMERCIAL MRO 14 JANUARY/FEBRUARY 2017 AIRCRAFT MAINTENANCE TECHNOLOGY WHEN IT COMES TO REPLACEMENT PARTS, THE large OEMs would prefer to have a monopoly on the aftermarket business. But as with any industry, the presence of alternative aftermarket products of comparable, or even better, quality drives down prices. For the aviation industry, this competition comes from smaller independent MROs as well as PMA parts manufacturers. In response, OEMs attempt to retain as much of the aftermarket as possible by marketing their parts as the highest quality, most reliable parts available, through warranty and contracts with air carriers and leasing companies, and now through new bundling strategies designed to lock out alternative suppliers. According to Tom Wolfe of FAA-certified MRO component repair facility AeroKool Aviation - a company that specializes in environmental con- trol systems, air cycle machines, valves, and heat exchangers — the OEMs have a vested interest in discouraging the use of third-party repair stations and PMA parts providers. "The OEMs invest heavily in product development on the front end and hope to recoup some of that investment in aftermarket programs," says Wolfe. Techniques designed to keep the repair and part replacement business in-house include contractual agreements that specify the use of OEM replace- ment parts only. OEMs may also employ repair "bundling" strat- egies for complete packages of repair for entire systems — and even other parts of the aircraft — under a single, blended rate. This makes it difficult for the air carrier to get information on individual part costs to evaluate if switching to a PMA part might be advantageous. "The aviation industry benefits from the compe- tition, which drives down prices for the airlines," says Wolfe. "There is no competition when the OEM is the only option in the market." That being the case, PMA parts are still at a disadvantage when compared to OEM parts — not because of price or quality, but rather a lack of education about alternate options. Parts Manufacturer Approval (PMA) is an authorization granted by the Federal Aviation Administration (FAA) to a manufacturer of aircraft parts. PMA parts must pass the same rigorous quality and testing requirements as OEM parts, but are often significantly lower in price. The perception and adoption of PMA parts can vary based on geography, the category of cus- tomer (air carrier, leasing company, parts broker, CAN PMA PARTS COMPETE WITH OEM AFTERMARKET? The perception and adoption of PMA parts can vary based on geography, the category of customer (air carrier, leasing company, parts broker, independent MRO), and in some cases, simply the familiarity and confidence of the customer with the quality of these alternatives IN ADDITION to providing a high quality part, working with smaller PMA suppliers instead of large OEMs can offer advantages in the areas of cost and delivery. By Jeff Elliott