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VSE Aviation and Eaton Partner on USM Program

VSE Aviation and Eaton Collaborate to Expand USM Program Amid Industry Challenges
VSE Aviation has entered into a strategic partnership with Eaton to enhance the availability of used serviceable material (USM) for commercial aircraft. This collaboration leverages Eaton’s expertise as an original equipment manufacturer (OEM) in repair services alongside VSE’s capabilities in distribution and asset management. Under the terms of the agreement, VSE will acquire and manage as-removed (AR) parts and overhauled components, thereby increasing the inventory of rotable and exchange assets accessible to airlines and maintenance providers.
Expanding Flexible and Cost-Effective Maintenance Solutions
The joint initiative is designed to offer operators more adaptable and economical options for aircraft maintenance. The program provides OEM-supported repair, exchange, and USM solutions, building upon the companies’ existing hydraulic repair partnership. It aims to deliver comprehensive component and repair support across major commercial platforms, including the Airbus A320 family and various Boeing aircraft models.
Matt Norman, Vice President of Aftermarket and Commercial Services at Eaton’s Aerospace Group, underscored the partnership’s emphasis on agility and cost efficiency. He stated, “This collaboration reflects Eaton’s commitment to delivering agile, cost-effective aftermarket solutions that meet the evolving needs of our customers. VSE’s proven distribution capabilities and teardown access position them as an ideal source to scale our USM footprint.”
Garry Snow, Chief Growth Officer of VSE Corporation, highlighted the operational advantages for airlines and maintenance providers. He noted, “Used Serviceable Material, when managed as an asset pool, provides operators with flexible, cost-effective solutions without compromising reliability. Under this new programme, VSE will serve as the exclusive buyer of AR material, holding exchange and finished units in stock to meet demand across Airbus A320 family and Boeing platforms.”
Navigating Market Challenges and Competitive Pressures
The partnership is launching amid a complex market environment marked by significant challenges. The Asia-Pacific region, particularly China, faces elevated costs and stringent regulatory requirements that complicate the expansion of USM programs. Ongoing supply chain disruptions continue to impact turnaround times, while the rapid growth of China’s commercial aircraft fleet is driving heightened demand for USM solutions. Concurrently, the used parts market remains constrained, with elevated prices for whole-asset components due to low aircraft retirement rates.
In response, competitors are adjusting their strategies to mitigate supply chain constraints and capitalize on USM opportunities where possible. As the market for used serviceable material grows increasingly competitive, the collaboration between VSE and Eaton positions them to meet operator demands for reliability and cost control, even as they contend with persistent industry headwinds.

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