Quoting Txspotter (Reply 121): 95% of the time the airline would take the damaged flaperon and exchange it with a repaired flaperon like the one I posted. They would pay about 1/10th of the price of the repaired one.
Example: A new flaperon costs $500,000
We would give them our new flaperon for $50,000
We would get their damaged flaperon and get it repaired, another $50,000
we would bill the airline for the repair and now have another unit ready to sell.
The airline has payed $100,000 for a new unit instead of $500,000
Airlines save money by only paying 1/5th the price and do not have expensive spare parts sitting around their warehouses that they may never need. Win-win.
Air France will almost NEVER buy anything OUTRIGHT (i.e. pay $500,000), they will exchange their broken for our new.
I believe Air Austral flies their B777's to Reunion as well. |
Quoting JetBuddy (Reply 128): Interesting business model, sounds lucrative. So the "new" flaperon you sell back to the airline is a repaired/refurbished unit which is in as good as new condition, with the paperwork and warranty and everything done?
I figured something like this was happening, but it's interesting to hear it from someone who works in that business.
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This is not something new and novel, all airlines and air forces have been replacing broken bits with refurbished bits for many decades now as replacing broken items with brand new items each time would be very expensive. However, there would be limits to what is repairable and what isn't and all repairs would need to be undertaken by an approved
MRO, using qualified technicians who are conducting the repair to approved standards. The part in question should also have a traceable history that would highlight where it has been fitted and how many hours it has flown. There will also be instances when the damaged component may be deemed to be beyond economical repair.
One other issue that has me confused is this bit...
Quoting Txspotter (Reply 121): Example: A new flaperon costs $500,000
We would give them our new flaperon for $50,000
We would get their damaged flaperon and get it repaired, another $50,000
we would bill the airline for the repair and now have another unit ready to sell. |
Perhaps, I'm not interpreting correctly, but this sounds like double dipping unless the repair agency is fully owned by the airline and the billing for the repair cost is an internal accounting requirement. As I see it:
Airline has damaged Flaperon but doesn't want to spend $500,000 for a new one
Your organisation sells them a refurbished replacement item for $50,000
Your organisation then takes their damaged Flaperon and repairs it (do you pay them for the damaged item?)
Your organisation then bills the airline for the repair (I don't know why they would want to pay for the item to be repaired when they have already paid for it to be replaced)
Your organisation then sells it to the next airline and pockets a completely free $50,000.
Why wouldn't the airline buy the $50,000 refurbished item and simply dispose of the damaged item, thus saving $50,000 for a repair they no longer need.