IATA launches platform to encourage fairer MRO parts pricing

October 1st 2019

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The International Air Transport Association (IATA) has unveiled its MRO SmartHub, an online tool intended to bring transparency to the airline component and parts sector. Read More »

The association said the MRO market has an annual estimated value of US$81.9 billion. SmartHub is expected to reduce airline expenditure on parts by 10%-15%.

“SmartHub will allow subscribing airlines and MRO providers to transparently list items to buy or sell on the new platform and will reduce over-payments by making the assessment of fair market value more accurate”, IATA said.

The solution also will:

• enable the accurate evaluation of parts inventories at any point in time

• increase confidence in planning, procuring or selling of aircraft components

• Facilitate better decisions about the choice and procurement of parts and components

• enhance trust between buyers and vendors

IATA senior vice president flight and safety operations, Gilberto Lopez Meyer, said: “This is a major modernisation that will lead to significant and much needed cost savings for airlines.

“The market really needs this. It will rebalance the aviation value chain.”

Until now, there has been no single central reference for the value of surplus parts or upfront visibility of a part’s cost or timely availability, IATA said.

“This leads to higher costs by making it challenging to accurately valuate inventories, resell surplus materials and calculate the costs and timing of repairs,” the association said.