Inventory purchase from Singapore International Airlines

Citation

(2001), "Inventory purchase from Singapore International Airlines", Aircraft Engineering and Aerospace Technology, Vol. 73 No. 5. https://doi.org/10.1108/aeat.2001.12773eab.010

Inventory purchase from Singapore International Airlines

Inventory purchase from Singapore International AirlinesKeywords: A J Walter Aviation, Spare parts

A J Walter Aviation reports that it has purchased a B737-300 package of rotable spares from Singapore International Airlines. The components are valued at $2.5 million.

This new package is thought to further enhance A J Walter's extensive stock capability for the Boeing group of aircraft which includes: Boeing 737, 747, 757, 767, Boeing/McDonnell Douglas DC-9, DC-10, MD-11 and MD-80.

SIA is the latest airline to divest rotable spare parts to AJW. Recently a major European carrier sold a substantial inventory of consumable and rotable spares worth in excess of $10 million.

AJW also informs us that, in association with one of the largest UK banks, A J Walter Aviation has negotiated a financial package that transforms the parameters of borrowing to fund the provision of aircraft spares. For the first time a lending institution has recognised the value of inventory and is prepared to consider this aspect alongside the performance of the business and customer base when advancing loans.

Christopher Whiteside, managing director of A J Walter Aviation, is enthusiastic about this new approach: "In the 'spares' business a consumer or stockist has always found it difficult to obtain funding for stock. Providing the 'risk' of operator and country is acceptable to both the bank and A J W, we are now able to provide an unsecured loan, to lease or purchase packages of inventory over a period of three to seven years for new-generation aircraft".