Case Study: How Lufthansa Technik is benefiting from the aircraft parts and material market

Aircraft parts and materials are a sizable chunk of the expenses of running an airline business. Aviation players must therefore equip themselves with the tools that will allow them to reduce their acquisition costs. With over 100,000 unique part numbers and brokers and original equipment manufacturers involved, it is a dense market. And that means prices may not match the offer and demand in real time, creating additional costs within the aviation supply chain. Furthermore, the parts and materials market offer limited transparency potentially leading to high costs as well.

Lufthansa Technik had been previously working hard to simplify the process because, for a significant number of parts, parts purchasing is a predominantly manual process. Suppliers are contacted individually to ascertain the availability of a part and especially its price.

How did Lufthansa Technik address the challenges of the aircraft parts and material market?

Today, Lufthansa Technik benefits from IATA’s MRO SmartHub and hopes to create value and increase transparency in the parts and materials purchase market as a whole.

IATA MRO SmartHub shines a light into the somewhat opaque market of parts and materials purchasing. This much-needed platform is expected to save airlines an estimated 10%-15% in the cost of parts and create new supply chain efficiencies for all stakeholders by bringing greater knowledge and transparency to the parts and materials purchase market.

How does MRO SmartHub help airlines operate in the aircraft parts and material market?

MRO SmartHub provides an easy interface to relevant information and thereby provides incisive decision support for management and material teams. Moreover, it is under the auspices of IATA, a trusted and neutral player with a uniquely global perspective. All aviation stakeholders will benefit from the platform. Lufthansa Technik has now found a high-valued solution housed in the MRO SmartHub.

• Develop better relationships with airlines
• Further their revenue potential 
• Extend their reach as new and existing customers customers are now a click away

What does Lufthansa Technik say?

The MRO SmartHub is a global platform that is applicable to all. The market really needs this. By creating greater transparency, the MRO SmartHub will generate fair market value. It will rebalance the aviation value chain and help airlines save money.

Fabricio La Banca, Head of Group Purchasing Surplus, Lufthansa Technik AG