With global shortages of parts, the links in the aviation supply chain are alarmingly stretched. Jim Scott, CEO and Co-founder of Artemis Aerospace, looks at the growing contribution that PMA parts and DER repairs bring to the table and weighs in on the debate.
Across the globe prices are relentlessly rising and the aviation supply chain is no exception. Increased inflation, geopolitical instability, shortages of parts and tariffs imposed by the US government have all contributed. As has the increasing scarcity of maintenance engineers following mass furloughs and retirements during the pandemic and fewer young people choosing to follow this career pathway.
According to a report by MarketResearch.com published this summer, the global commercial aircraft PMA market was estimated at US$11.4 billion in 2024, and is expected to reach US$14.9 billion by 2030, growing at a CAGR of 3.6% in the interim. In the US alone the market is estimated at US$2.6 billion, and China is predicted to reach US$2.9 billion by 2030 with a growth rate of 5.3% during the same period. Japan, Canada and Germany are also major players in the market, with CAGR forecast at 1.7%, 2.6% and 2.5% respectively. The market is also showing strong growth in demand for DER-related services.
However, this increased reliance on both PMA parts and DER repairs hasn’t always been regarded favourably by the industry. Here’s Jim’s take on the turnaround:
What has been the issue surrounding PMA parts and DER repairs?
“Both have traditionally been viewed as solutions to be used as a last resort, but they’re now undoubtedly an essential part of the supply chain. However, there is still a lingering air of the second-class option around both within the industry which is unnecessary and outdated.
“The MRO market has always been dominated by OEMs for all sorts of reasons – they hold the intellectual property and design data for the aircraft, they’ve written the manuals, created optimum maintenance schedules, they know the aircraft and its components inside out. Integrated service plans make it easier to stick to OEM parts and maintenance. There’s a whole perspective (obviously driven by OEMs) which implies that using anything other than their own parts and services is not the most responsible choice. This is simply not a sustainable argument in today’s market.”
Are the regulatory safeguards sufficiently robust for the use of PMA parts and DER repairs?
“Of course they are – they’re incredibly well-regulated. If they weren’t, then frankly component solutions providers like Artemis wouldn’t go anywhere near them. Safety is without question always the top priority. The FAA, CAA and EASA all require compliance with rigorous approval processes for both. PMA parts are added to the Dynamic Regulatory System database when they’ve been approved for consistency with FAA airworthiness standards, production QA and eligibility for installation on the specific aircraft. DERs are authorised to make decisions on behalf of the FAA within their particular function code. If you’ll excuse a nautical metaphor in an aviation article, the regulatory bodies run a very tight ship.”
What is driving the move towards PMA parts and DER repairs?
“Inevitably, the overriding factor is cost, and availability comes a pretty close second. Historically, higher prices from OEMs have been due to a lack of competition, and OEM parts tend to come with a maintenance contract which is a substantial chunk of an airline’s operating cost. PMA parts manufacturers are now elbowing their way into the market providing top quality parts without the need for a contract. The same applies to DER repairs. If you can get a DER onto your urgent job immediately, an airline with an AOG aircraft won’t want to hang about waiting for an engineer to become available via their contract. From a sustainability point of view, and that’s rightly a huge concern in the industry, DER repairs are more likely to repair a part than immediately replace it – which is also a major cost saving.
“Also, let’s be honest, OEMs simply can’t keep up with the demand for parts with global travel expanding so rapidly. There aren’t enough engineers to manufacture them, and so many experienced people were furloughed or made redundant during the pandemic and never came back. If you desperately need a particular part and you can get a PMA one, then you can see why this is more favourable than an increasingly long lead time from the OEM. PMA providers tend to be more flexible as they try to capture a bigger share of the market – and they will usually specialise in specific components, which is a more efficient manufacturing model. Lower production costs mean the reduction can be passed on to customers.”
Why is there still some reluctance to use PMA parts and DER repairs?
“There’s less and less reluctance because end users simply can’t afford to be that picky when it comes to parts and repairs. It’s taken a while for airlines to learn to trust the quality of parts and repairs from anywhere other than the OEM – there’s sometimes that lingering feeling that the original brand is somehow more trustworthy. There was also the worry that the insertion of PMA parts into an aircraft, or a repair done by a DER, could possibly affect its resale value and make it less desirable for future purchasers. Some OEMs inserted clauses into their warranties which prohibited these, perhaps stating that it would invalidate them or mean that the part or issue wouldn’t be covered by the maintenance contract.
“But when time is of the essence and you can get meticulously manufactured airworthy parts from elsewhere more quickly, or a top-quality rapid repair at a better price, that’s going to become an overriding factor.”
What does this mean for the aviation supply chain?
“A bit of healthy competition can only be a good thing if it drives up standards and efficiency and helps bring costs down, as long as airworthiness remains the top criterion. The aviation supply chain is in a pretty delicate state, but its resilience is crucial to keeping aircraft in the skies and the wheels of global commerce turning. It’s been battered by global upheaval, the reduced availability of titanium for which Russia is a major world supplier, tariffs which are seemingly added, removed, increased and decreased on a whim and the worldwide shortage of technicians and engineers.
“Increased demand has led to many older aircraft being pressed back into service – these will need more frequent repairs and parts changes. We’ve got to boost the number of reputable suppliers to remove potential bottlenecks and reduce AOG time, and increased use of PMA parts and DER repairs is fundamental to this.”
The last word: “All of us in the industry have not only an interest in but a huge responsibility for the correct and safe use of aircraft parts, whether OEM-manufactured, PMA or USM, and the increased use of DER repairs. We welcome regulation, however meticulous, which can help create trust and widen the market and it’s really important that everyone, including OEMs, works towards enhancing the versatility and effectiveness of the supply chain.”
