November 18, 2013
Credit: International Aero Engines
International Aero Engines (IAE) has stepped into the certified surplus materials arena, announcing the Pure-V designation available to V2500 engines with approved parts and repair histories.
Pure-V figures to bring several benefits to both the manufacturer and V2500 owners, notably lessors. Customers with Pure-V-certified engines stand to benefit from the potential of higher residual values when selling them, and will be offered extended warranties on parts.
For IAE, operators that place value on the Pure-V designation will turn to the manufacturer for parts and repairs, giving it a leg up on independent shops and, perhaps more significantly, the surplus parts market. IAE also offers a “kit” that promises to bring non-compliant engines up to the Pure-V standard.
Pure-V engines will be tracked in a database that includes information from authorized repair providers at the engine serial-number level, IAE says.
The new program could help shore up an already-shrinking portion of the V2500 aftermarket that is outside IAE’s grasp. The manufacturer has 60% of the in-service V2500 fleet under a maintenance agreement, as well as 80% of future deliveries. It offers both power-by-the-hour and fixed-price agreements under its V-Services umbrella.
IAE’s move comes on the heels of a similar program launched by GE in late September.
Engine manufacturers are the largest providers and purchasers of surplus parts material, largely to feed their captive aftermarket customer base with cost-effective repair options.
Canaccord Genuity analyst and supply chain specialist Ken Herbert cited GE’s move as the beginning of a new trend among manufacturers to set their surplus parts-related services apart from the general surplus market.
“We expect to hear much more about this from OEMs,” he wrote in an aftermarket trends survey last month.