Military aviation organizations overpay up to 300% of actual price value for spare parts

Although military and defence expenses are steadily decreasing, the spending on military aircraft technical maintenance keeps constantly surging. Locatory.com experts have observed that military aviation organizations on average overpay up to 300% for aircraft spare parts.

In 2008 the amount spent on military aviation technical support topped USD 58 billion whilst in 2018 it is expected to climb over USD 67 billion. Military aviation technologies are relatively slowly updated therefore governments all over the world continue to invest in obsolescent military aircraft fleets. This naturally implies growing maintenance, support and spare parts’ rotation costs.

Locatory.com experts have noticed that in the situation when there is an option to pay USD 5 million for modernizing an old plane as opposed to spending USD 400 million on a brand new one most organizations choose to do the former without much hesitation. However, whatever the decision a military organization arrives at, the tendency to overpay for spare parts is still dominant. There are several factors to take into account – use of outdated agreements, lack of proper market analysis in spare parts platforms’ sector, orientation towards large dealerships as opposed to direct providers, etc.

According to Locatory.com, as most countries aim at decreasing budget deficiencies they must establish stronger strategic partnerships with the private aviation sector. Use of secondary aviation spare parts’ sales platforms and a deeper insight into prices of a number of competitors would significantly cut technical maintenance expenses.

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