regional markets outside of the United States. We augment our
direct customer marketing efforts with industry event sponsorships,
conference participation, press release broadcast, web site
promotion and social media initiatives, in addition to trade
publication announcements, advertising and periodic article
contributions.
Research and Development
We embrace a customer centric approach to supporting our clients
with new value-add products and services designed to enhance Flight
Equipment performance, lower the cost of maintenance, improve
reliability and extend service life, while reducing the associated
cost-of-ownership. Key initiatives to support our customers’
reduced cost of ownership include reduced down-time, lower cost USM
alternatives, Flight Equipment lease versus own options, innovative
aircraft modification and upgrade services, and propriety component
repair regimes.
Because our customers utilize our entire range of services, from
whole aircraft MRO through individual component MRO, we frequently
receive valuable insights as to evolving customer needs and
desires. These inputs are regularly provided to our senior managers
and technical personnel to identify and quantify opportunities for
developing new products and services. Where the business case
warrants, our engineers and technicians are tasked to develop, test
and introduce new Engineered Solutions, including proprietary
repairs not identified in existing repair manuals, and STCs for new
products designed to provide value to our customers.
Our ability to bring new Engineered Solutions to market is made
possible through our in-depth knowledge of the requirements
promulgated by respective airworthiness regulatory agencies like
the FAA, in addition to non-mandatory recommendations issued by
OEMs. The engineering and regulatory authority certification
process varies widely by product application and region, and we
look to contract with third-party manufacturers and/or channel
partners on an as-needed basis to assist in obtaining certain
regulatory agency approvals.
We believe that our “unlimited” airframe and component FAA repair
station certifications, PMA authority, and deep technical expertise
position us to efficiently identify and implement new Engineered
Solutions and proprietary component repairs, which is an important
differentiator of our business.
Competition
The aviation aftermarket is highly competitive with many
participants, including Flight Equipment OEMs, MROs, airlines,
aircraft and engine leasing companies, financial sponsors, USM
sales organizations, and other independent manufactures and service
providers. The vast majority of participants compete within smaller
subsets of our broader products and services offerings. Frequently,
our competitors specialize in one or a limited number of areas
within the following segments: aircraft MRO, engine MRO, Engineered
Solutions, aircraft leasing, engine leasing, USM part sales, and
asset management. Further, many component MROs specialize in a
small subset of repairs related to specific components or
materials, such as composites, pneumatics, hydraulics, electronics,
landing gear, wheels and brakes, and auxiliary power units.
Consumers of aftermarket Flight Equipment products and services
typically make buying decisions based on a variety of factors
including quality, pricing, availability, provider reputation,
technical specification, prior operating history, turnaround time,
geographic location and financial terms.
Our Asset Management Solutions segment competitors include AAR
Corp., AerCap, Delta Air Lines, Inc., GA Telesis, LLC, Kellstrom
Aerospace, Heico Corporation, Willis Lease Finance Corp. and Air
Transport Services Group, LLC, while competitors to our TechOps
segment include AAR Corp., Aviation Technical Services, Inc.,
HAECO Americas, MRO Holdings, Inc., ST Engineering North
America, Air Transport Services Group, LLC, Delta Air Lines, Inc.,
TransDigm Group, MTU Aero Engines, Woodward, Inc., and
Lufthansa Technik AG. Though our product and service offerings
include certain aircraft and engine leasing activities, we do not
view large pure-play aircraft and engine leasing companies as core
competitors, as those companies are primarily centered around cost
of capital and financial securitization products, and frequently
choose to divest mid-life assets as they lack the technical and
mechanical capabilities to deal with assets that have exited the
OEM warranty periods.