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    With airline fleets grounded, plane recyclers bet on parts boom

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    Monday, March 8, 2021
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    With airline fleets grounded, plane recyclers bet on parts boom

    Airlines seek viable used parts from retired aircraft for planes due for heavy maintenance


    Published:  September 14, 2020 10:40 Compiled by Devadasan K P, Picture Editor with inputs from Reuters

    1 of 15
    BUS AIRBUS433-1600000330033
    The number of planes dismantled for parts or scrap could double to 1,000 annually through 2023, up from roughly 400 to 500 planes a year since 2016, according to data firm Cirium. Image Credit: REUTERS
    2 of 15
    BUS AIRBUS45-1600000321480
    A completely salvaged cockpit of an Airbus A310 airplane. The fate of the world’s pool of grounded planes is being closely watched by players in the market for used-serviceable material, with one report from consultants Oliver Wyman forecasting “a tsunami of demand” for such parts, as airlines seek to lower costs. Image Credit: REUTERS
    3 of 15
    BUS AIRBUS223-1600000351222
    Airbus A310 airplanes with their engines removed sit on the tarmac. The pandemic, which is expected result in a 55% drop in 2020 passenger numbers, has prompted early retirements of older planes, including the grounding of B747 jets by British Airways, some of which are headed to Air Salvage. Image Credit: REUTERS
    4 of 15
    BUS AIRBUS343-1600000341870
    When an aircraft arrives at Aerocycle’s Mirabel facility in, Quebec, Canada it is subject to a systematic process designed explicitly for that aircraft type. Before dismantling begins, a series of tests determine the status of the aircraft systems. Image Credit: REUTERS
    5 of 15
    BUS AIRBUS66-1600000345632
    The aircraft fuel tanks are then defuelled, drained and vacuumed. The hydraulic systems are also drained and purged and hazardous materials are disposed of in accordance with local regulations. Image Credit: REUTERS
    6 of 15
    BUS AIRBUS55-1600000313468
    Even as aviation remains in a slump because of the pandemic, the head of U.S. commercial aerospace company GA Telesis was made aware of five airlines calling for offers to dismantle planes. Above, an employee inspects an engine on an Airbus A310 airplane prior to removal at airplane recycling company Aerocycle in Mirabel, Quebec. Image Credit: REUTERS
    7 of 15
    BUS AIRBUS5-1600000353023
    An Airbus A310 airplane with its engine removed sits on the tarmac. While companies that store, dismantle, and buy and sell used aircraft parts see opportunity in parked planes, a sudden increase in the supply of used parts risks depressing prices in the estimated $3 billion a year industry, despite demand from airlines seeking to lower maintenance costs, executives and analysts say. Image Credit: REUTERS
    8 of 15
    BUS AIRBUS22-1600000337779
    The galley of an Airbus A310 airplane is partially salvaged. While maintenance companies and new engine producers also deal in used materials, a parts surplus could weigh on their sales. Image Credit: REUTERS
    9 of 15
    BUS AIRBUS654-1600000316993
    Across the border, Canada’s Aerocycle is bidding to buy grounded planes for the first time to dismantle and resell for parts, instead of just recycling aircraft on consignment from carriers, its CEO said. Image Credit: REUTERS
    10 of 15
    BUS AIRBUS-1600000349267
    Rubber wheel chocks are seen behind the tires on an Airbus A310 as it sits on the tarmac at airplane recycling company Aerocycle in Mirabel, Quebec, Canada. Image Credit: REUTERS
    11 of 15
    BUS AIRBUS44-1600000325749
    Used materials could compete with new parts and defer immediate airline demand for “aftermarket” spend, referring to the maintenance, repair and overhaul sector, now estimated by Naveo Consultancy at $50 billion. Above, a worker inspects the cockpit of an emptied Airbus A310 airplane. Image Credit: REUTERS
    12 of 15
    BUS AIRBUS3243-1600000305494
    Salvaged pieces collected in an Airbus A310 airplane at recycling company Aerocycle in Mirabel. Image Credit: REUTERS
    13 of 15
    BUS AIRBUS1-1600000309484
    The cap for an engine casing sits on the tarmac behind an Airbus A310 airplane at airplane recycling company Aerocycle in Mirabel, Quebec, Canada. As COVID-19 grounds swaths of airline fleets, companies that profit off the dismantling and trade of aircraft parts are seeing early signs of an expected rebound in activity as carriers accelerate plane retirements. Image Credit: REUTERS
    14 of 15
    BUS AIRBUS33-1600000354786
    UK-based Air Salvage International, which normally dismantles between 40 and 50 aircraft a year, has parked more planes without a buyer for their parts since the COVID-19 outbreak. Founder Mark Gregory expects most will eventually be dismantled. Image Credit: REUTERS
    15 of 15
    BUS AIRBUS434-1600000333928
    Salvaged pieces collected in an Airbus A310 airplane. Airlines are looking for narrowbody parts, since around 64% of that single-aisle aircraft type are active, flying domestic routes. Image Credit: REUTERS

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