Air Transport World

'We own the aftermarket': a strong position in aircraft systems and components helps Goodrich build its support businesses.(MRO-Outsourcing)

Goodrich Corp. VP-Investor Relations Paul Gifford has a simple explanation for why the aerospace supplier will continue to grow and prosper: "On most products, we own the rights to the aftermarket, and that's why you're in this business--the aftermarket."

In an age in which few airlines are willing to undertake significant new investment in maintenance, repair and overhaul activities, Goodrich's commitment to the spares and support businesses has put it in a solid position to exploit the trend toward increased outsourcing of MRO. Currently, around a third of the company's $4.4 billion in annual sales comes from its activities in the commercial airline aftermarket and as Gifford notes, it manufactures many of the components it services, including wheels and brakes, landing gear, sensors, actuators, deicing systems, power units, cargo systems, engine controls, evacuation systems, lighting, crew seats and major structural components such as nacelles, cowls and thrust reversers.

Although Goodrich does not see a recovery in new aircraft orders until late 2005 of perhaps even 2006, the aftermarket businesses should post a 3%-5% rise in sales in 2004, says Gifford. "Our product repair and overhaul is driven by ASMs" and worldwide ASMs are forecast to rise 3%-5% this year, he notes.

Of course, aircraft age drives maintenance demand as well and there are hundreds of jets delivered in the second half of the 1990s that are at or approaching significant maintenance thresholds. …

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