ecube’s Steven Taylor explains to MRO Management how ‘matchmaking’ aircraft sellers and buyers can help to finalise deals swiftly.
The ‘big pause’ experienced by the aviation industry from the onset of the pandemic saw many asset owners in a holding pattern, waiting to make decisions on aircraft returning off lease and destined for end-of-life (EOL) activity.
Everyone was waiting to understand when the market would recover to a degree that provided some level of confidence in what the future held, with the fundamental metric being passenger demand and traffic which has seen a steady month-on-month recovery back to 2019 levels.
Total traffic in 2022 (measured in revenue passenger kilometres or RPKs) rose 64.4 per cent compared to 2021. Globally, full year 2022 traffic was at 68.5 per cent of pre-pandemic (2019) levels. December 2022 total traffic rose 39.7 per cent compared to December 2021 and reached 76.9 per cent of the December 2019 level.
Over the past couple of months, we have seen increased trading activity across our three locations, where parts company customers who have remained largely dormant in airframe acquisitions during the pandemic are hungry for aircraft to purchase. We see a unique opportunity to support both the aircraft sellers and buyers by ‘matchmaking’ both parties with available assets at our locations in UK, EU and US.
The ‘ecube marketplace’
When an aircraft is not intended to have an operational future, the ‘ecube marketplace’ enables selling parties, our lessor and airline customers, to make decisions, send aircraft and finalise deals without delay.
This is seen as the preferred choice for our primary customers thanks to an active group of purchasing and consignment partners (parts companies and airline MROs) who, due to our third-party logistics offering, are prepared to complete deals on site.
Our consistency in service and output is enhanced by our diamond level disassembly status with the Airline Fleet Recycling Association (AFRA) accreditation system. As a result of this, aircraft asset owners value the placement of aircraft at ecube knowing they will have an enlarged pool of potential buyers interested in their aircraft.
The added value of ecube’s marketplace offering is the ‘one aircraft, three locations’ principle where an aircraft owner can select the UK, EU or US based on the transactional benefits they offer.
We aim to optimise this process for the benefit of both sellers and buyers, such that the transaction process time is as quick as it can be whilst achieving the results required by both parties.
The trading of airframe assets is a fundamental element of the aviation industries’ circular economy opportunities and responsibilities, as valuable components removed from all disassembled aircraft work to provide a sustainable source of high-quality material for the global fleet. With the constant demand of selling and buying, we are excited about what we can offer our customers at the ‘ecube marketplace’ for aircraft demands in the UK, EU and US.
This feature was first published in MRO Management – October 2023. To read the magazine in full, click here.