02 January 2023

AAR Corp welcomes new US law on used aircraft parts

by Marc Selinger

The US Navy's P-8A Poseidon maritime patrol aircraft is a militarised version of the commercial Boeing 737. (US Navy)

US-based aircraft maintenance provider AAR Corporation could benefit from a provision in the recently enacted fiscal year (FY) 2023 National Defense Authorization Act (NDAA) that requires the US Air Force (USAF) and US Navy (USN) to consider buying used parts for their commercial-derivative aircraft, according to the company's chief executive.

While AAR has “had success here and there” selling used aircraft parts to the US government, the government has tended to favour new aircraft parts, said John Holmes, AAR's president and CEO. However, the new law requires the USAF and USN to “implement processes and procedures” for buying used parts, and AAR believes it is well-positioned to furnish such items.

“We think this could be the starting point of [a] meaningful opportunity for AAR,” Holmes told analysts on 20 December. “How much and how long, I think, is a question, but we're really encouraged by the fact that that language is now part of the NDAA.”

Platforms that could be affected by the provision include the USAF and USN C-40 transport and the USN P-8 maritime patrol aircraft, both of which are military versions of the Boeing 737, and the USAF C-32 transport, which is a military version of the Boeing 757, Holmes said.

Lawmakers said that greater reliance on used aircraft parts could provide several benefits to the military. In a July report, the Senate Armed Services Committee wrote that it “recognises that the [US Department of Defense] already purchases FAA-certified used parts for many platforms but believes expanding the practice across all relevant fleets could generate significant operations and maintenance savings and increase the availability of spare parts”.

US-based aircraft maintenance provider AAR Corporation could benefit from a provision in the recentl...

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