Military aviation organizations overpay up to 300% of actual price value for aircraft parts

Oct 6th, 2011

Although military and defence expenses are steadily decreasing, the spending on military aircraft technical maintenance that is largely determined by price of aviation parts, keeps constantly surging. Locatory.com experts have observed that military aviation organizations on average overpay up to 300% for parts of aircraft.

In 2008 the amount spent on military aviation technical support topped USD 58 billion whilst in 2018 it is expected to climb over USD 67 billion. Military aviation technologies are relatively slowly updated therefore governments all over the world continue to invest in obsolescent military aircraft fleets requiring an increasing amount of spending on different parts of aircraft. This naturally implies growing maintenance, support and aircraft supplies’ costs.

Locatory.com experts have noticed that in the situation when there is an option to pay USD 5 million for modernizing an old plane as opposed to spending USD 400 million on a brand new one most organizations choose to do the former without much hesitation. After all it may seem a lot cheaper to acquire some parts of aircraft. However, whatever the decision a military organization arrives at, the tendency to overpay for aviation parts is still dominant. There are several factors to take into account – use of outdated agreements, lack of proper market analysis in aircraft supplies platforms’ sector, orientation towards large dealerships as opposed to direct providers of aviation parts, aircraft parts, aircraft supplies and etc.

According to Locatory.com, as most countries aim at decreasing budget deficiencies they must establish stronger strategic partnerships with the private aviation sector, especially when we are talking about those that sell aircraft parts need. Use of secondary aviation parts’ sales platforms and a deeper insight into prices of a number of competitors offering aviation supplies would significantly cut technical maintenance expenses.

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