Air Transport World

Help from outside: ASC moves into used aircraft leasing marketing in a big way.

Help from outside: ASC moves into used aircraft leasing market in a big way

Billions of airline dollars are tied up in the ownership of aircraft, spares and rotables. It needn't be so, says M. Anthony Burns, chairman and CEO of Ryder System, Inc. All that's needed is "a reliable, third party support entity,' he says, to buy this equipment and lease it back to the airlines, and provide assured and immediate replacement of parts that fail. He thinks that Ryder's subsidiary, Aviation Sales Co., is one outfit that could paly that role.

Ryder has made its reputation as a major supplier of services to the surface transportation industry. Now ASC is banking on the financial clout of its $2.5-billion (revenues) parent to help power its own expansion in the business of leasing aircraft rotable equipment and engines to the airlines. And, indeed, since its acquisition by Ryder in 1982, ASC has been able to stretch its wings considerably. Formerly a specialist in selling and leasing refurbished airplane parts, it has since 1983 also become a major factor in the used aircraft market. It currently owns a fleet of 30 aircraft, nearly all of which are out on lease.

John Yurgealitis, ASC's VP-sales and marketing, notes that the step up from parts to complete aircraft was a natural progression once Ryder's dollars became available. Although ASC has always been a buyer of used aircraft, in the past it has bought for the purpose of cannibalizing the aircraft and refurbishing the parts. Since the company's formation in 1971 by James A. Bryan, Jr.--who is still president--this actually has helped make ASC one of the five top non-manufacturing firms providing support to the world's airlines, according to Bryan, and the world's leading independently owned source of components and parts for Boeing aircraft from the 707 and 720 to the 727, 737 and 747. It also maintains inventories of rotables, expendables and entire systems for the Lockheed L-188 Electra and L-1011, McDonnell Douglas DC-9 and DC-10, and the Nihon YS-11. Also on hand are Pratt Whitney JT3, JT4, JT8 and JT9 engines plus engine support inventories and QEC material. The company's General Hydraulics subsidiary, an FAA-approved repair station, overhauls hydraulic, fuel and electro-mechanical components for a wide variety of aircraft. …

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