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Trust in USM Essential for Effective Predictive Strategies in PAM APAC

Trust in USM Essential for Effective Predictive Strategies in PAM APAC
An overly cautious approach to the supply of used serviceable material (USM) is contributing to rising parts prices within the Asia-Pacific aviation sector, industry leaders cautioned at the inaugural Predictive Aircraft Maintenance (PAM) Conference held in Singapore. Against a backdrop of ongoing supply chain disruptions, experts underscored the critical need for enhanced transparency and trust to fully harness the potential of USM and support more effective predictive maintenance strategies.
Challenges and Industry Perspectives
Job Arnold, founder of the online marketplace STRADE, highlighted the abundance of available USM inventory, lamenting that the industry’s conservative mindset restricts access to these resources. He argued that reliance solely on aircraft teardowns for parts is unnecessary and that unlocking the value of existing USM could alleviate supply pressures. Arnold criticized the opacity surrounding pricing, stating, “There is nothing fair about the fair market value because no one is being transparent about it. No one is saying that’s the price you should be paying.” He advocated for a more democratized and transparent marketplace to reduce buyer frustration and stabilize prices.
Echoing these concerns, Mahmoud El Sawah, founder and CEO of AirNxt, called for the creation of a platform comparable to Amazon for aviation parts. He emphasized the current lack of clarity regarding available parts and their sources, which drives buyers toward brokers. El Sawah stressed the importance of implementing itemized inventory management systems for teardown companies to improve market efficiency.
Tony Ramage, director of origination and trading for APAC at EirTrade Aviation, noted that soaring demand for parts has inflated prices for end-of-life aircraft to unsustainable levels. He observed that airlines are paying premiums due to uncertainty over delivery timelines. Ramage does not anticipate a swift resolution to supply chain challenges, suggesting that carriers will need to reconsider their traditional preference for new components. While he acknowledged that USM’s role will grow in importance, he cautioned that entrenched conservatism will slow this transition.
Market Dynamics and Technological Innovations
The adoption of USM in the Asia-Pacific region faces additional hurdles, including high costs, stringent regulatory frameworks, and persistent supply chain bottlenecks. Nevertheless, market dynamics are evolving as domestic policies in countries such as China become more receptive to USM, coinciding with the expansion of the region’s commercial aircraft fleet. Competitors are responding by leveraging emerging technologies like blockchain to enhance traceability and transparency. For instance, Ascent Aviation’s collaboration with Block Aero Technologies aims to penetrate China’s USM market by offering digital traceability solutions.
Arnold acknowledged that USM’s reputation has been undermined by concerns over rogue and counterfeit parts, highlighting the imperative to build greater trust. He proposed that increased parts pooling and the adoption of digital traceability mechanisms would bolster confidence among airlines and regulators alike. As the Asia-Pacific aviation market continues to evolve—shaped by factors such as U.S. interest rate expectations, the resilience of the technology sector, and geopolitical risks—industry leaders concur that fostering trust and transparency in USM is vital for effective predictive maintenance and sustainable growth across the region.

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