Exit Strategy – the Consignment Dilemma

Hold, Sell or Consign?

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As an airline or corporate operator, you have a few options to deal with excess parts after retiring or selling an aircraft.

 

1. You can “give” the parts away to the new owner

This is not a very attractive option, and certainly not profitable, but if the goal is to get the cost of the parts off the books and get rid of the hassle of parts collecting dust on the shelves, this will certainly do the job for you!

 

2. You can try to sell the parts yourself — one at a time

This option works best for airlines and operators with a deep network of parts buyers and an ability to carry the inventory on the balance sheet until the parts are sold.

 

3. You can complete a “bulk sale” of all of the parts to one distributor

If you only have a short amount of time to sell your parts, or if cash is needed quickly, this is the best option. The downside is, although you will move the parts out quickly, you will only recover a small percentage of the inventory value.

 

4. You can place your inventory with a Parts Consignor

For many companies, this is the best way to recover much of the book value of the parts inventory without taking up space or man-hours!

 

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Not all Consignees are equal!

 

 If consignment is the best option for your company, here are a few things you should look for in a consignee, to protect yourself and your assets:

The aircraft parts consignee you select should operate in your best interest, and have the systems, sales knowledge and network in place to help you turn your surplus aircraft parts into cash as quickly as possible!  Make sure your partner also limits the number of parts consignments of similar aircraft models, ensuring that you are not “competing” with another consignor!

 

Consignment is not the best option for everyone, but if it is right for you, then it may be time to reclaim that valuable storage space and let a professional take care of selling your surplus inventory!

QMS: To Certify, or Not Certify…

by: Donald Capwell

October 9, 2013

 

“It’s About Credibility, Jack!”

In an earlier article I wrote about Quality Management Systems (QMS) in the aviation industry, what they are and what the different standards mean.  In this article, we cut right to the chase!  What’s the big deal about whether or not a QMS is certified, anyway?  Well, in the words of the great philosopher, Silas Merritt Robertson (Uncle Si from Duck Dynasty)… Read the full article, here

Quality Management Systems

by:  Donald Capwell

Vice President, Operations – Zenith Aviation

October 3, 2013

QMS

Quality – Yes, it’s that important!

Prior to working in the industry, I never gave much thought to quality or safety in aviation, at least not much beyond a quick prayer before boarding a commercial flight (admit it, you’ve done it, too!).  Read full article here

Traceability: What does it mean?

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September 25, 2013

By: Donald Capwell –

V.P., Operations  – Zenith Aviation

 

There is NO traceability requirement!

 

In The Parts Traceability Puzzle,” author Jason Dickstein, an attorney with the Washington Aviation Group, points out a seemingly little-known fact within the aviation industry about the FAA’s requirements for aircraft parts traceability:  there are noneRead full article here