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Bonus Tech: recycling engines to shield against market risk

Bonus Tech

Recycling engines to shield against market risk

Against the backdrop of a high-pressure spare parts market, Bonus Tech – our affiliate specializing in engine teardown – ensures a steady supply of quality parts.

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Given the economic and industrial situation the aviation sector is currently facing, notably in terms of supply chain delays, the role of used materials (USM) has become crucial to the business of engine maintenance. The result is that MROs such as AFI KLM E&M, i.e. those with the ability to maintain extensive pools of spares by adding USM to their provisioning strategy, gain a clear advantage in terms of repair timeframes. Not to mention that these parts are also less costly: given that materials represent 80% of repair costs, the use of USMs is now a key lever in reducing the price of shop visits.

Teardown service provider

Based in Miami (Florida), Bonus Tech is a leading player in the field of engine disassembly and dismantling. Operating as part of the AFI KLM E&M global MRO network, this joint venture offers a comprehensive range of services covering all the main engine models currently in service.

“Our customers are mostly parts traders, with a high concentration in the US, as the majority of these part traders are located in Illinois, Florida and Texas. But we also have many customers around the world, especially in Europe and even in Australia.”

David Lamoureux

CEO of Bonus Tech

A growing market

Currently, Bonus Tech handles around 150 engines per year, though it has the capacity for many more. Estimated at around 200 teardown units per year, this capacity will enable it to absorb the spike in demand forecast to begin in 2024.

“New aircraft fleets and engines are arriving on the market. This will lead to the retirement of older-generation aircraft, and while this will occur over a period of several years, it will still require significant and highly specific industrial capabilities. In the current context, environmental concerns are being given greater consideration – from an industrial point of view, the standards, regulations and handling procedures which now have to be applied create added pressure, which is making teardown a strategic specialty. However, the market remains highly local, as transport costs – often equivalent to the cost of teardown itself – constitute a decisive factor in the overall cost.”

David Lamoureux

CEO of Bonus Tech

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Ask for added value, benefit from the strength of a network

As it experiences major growth, Bonus Tech’s customers can also draw upon existing synergies within the AFI KLM E&M network. In addition to the joint venture services, the clients can request CRMA engine part repair solutions. Holding certifications for the European, American and even Chinese markets, CRMA works with the full range of stakeholders in the sector, including brokers and part traders. The complementarity of both companies can contribute to optimizing the asset availability, especially regarding the CFM56-5B/7B and the GE90-115.

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