Propelled by the recent
merger with AlliedSignal and other acquisitions, Honeywell Aerospace
Services is positioning itself for even greater expansion.
"We've launched a tremendous growth initiative," according
to Jim Taiclet, president of the Phoenix-based aftermarket services
organization. The group's repair and overhaul business grew a
blistering nine percent last year, Taiclet's first in the job.
It now represents about half of HAS' $2.6 billion revenues.
Continued efficiencies, both operational and administrative, should
continue to drive growth in the sector, which primarily covers
rotable parts. Turn times continue to come down while productivity
increases. HAS now is sending teams to customers to help them
streamline and synchronize their ordering processes.
HAS expanded its hardware products business by 50% last year,
to about $600 million in revenues, with the acquisition of Dallas-based
TriStar Aerospace. The Hardware Products Group primarily deals
with consumables such as seals and gaskets.
But Taiclet sees some of the strongest potential in HAS' e-commerce
initiatives. Honeywell recently announced a joint venture with
United Technologies and i2 Technologies to launch MyAircraft.com.
It is to be one of the first open Internet marketplaces for aerospace
products and services. In addition to letting airlines, original
equipment manufacturers and suppliers more efficiently buy, sell
and trade parts, it sets the stage for offering supply chain management,
inventory planning and other online services.
Goal of MyAircraft.com is to provide a "one-stop shopping"
site for customers that offers a broad range of products and service,
Taiclet said. It would use one software and a single payment system.
Users would be pre-screened and required to supply appropriate
FAA paperwork.
Taiclet believes the site will be a success due to its multi-vendor
structure. Although MyAircraft.com will charge transaction and
subscription fees, they will be "reasonable", he says.
Both the site's backers and the customer will benefit from lower
transaction costs and reduced cycle times. Most other aerospace-related
e-commerce sites are single vendor and are set up more for the
benefit of the supplier than the customer, he contends.
HAS also intends to expand its inventory management services to
include technical management, or complete logistics systems. "Airlines
don't want to be in the inventory management business," Taiclet
says. HAS is in initial talks with potential airline customers.
It also is trying to develop related financing options.
