Digitization Of Engine Trading A Boon For Aviation Sector, Panelists Say

FORT WORTH—Digitizing aircraft engine trading increases transparency and removes obstacles to timely asset evaluations, panelists said during Aviation Week Network’s Aero-Engines Americas conference Jan. 28.

Panelists highlighted the benefits of being able to search and view engine availability online, the capability of sellers to upload and store structured engine documentation and the broader collaborative assessment experience for trading partners.  

Aeroxchange recently launched the initial rollout of its AeroCompass platform that offers these functions.

“Having the ability to look in one place to know what’s available, a marketplace that has that level of visibility—that’s a game changer,” said Jim Clarke, executive vice president and general manager of global engine support for HAECO Americas.

The importance of digitizing documentation and processes for the aviation industry has taken on renewed focus following the AOG Technics parts scandal that occurred in 2023, when cases of falsified engine parts documents were discovered. “We can improve safety, confidence and efficiency of the industry through electronic transactions,” said Mark Yerger, principal at MDY Services.

“We need to know more about what’s happening at the component level,” he emphasized. If it is possible to transfer maintenance records and begin building a digital twin in the engine environment, “we can squeeze a little bit more safety and financial gain out of the actual asset,” Yerger added.

Panelists expressed optimism about the potential of further digitization. “We’re at the beginning of the journey. The structure has been built, and we have the ability use the marketplace,” said Ken Newton, SCM engine and lease management director for Alaska Airlines.

It will be crucial for industry players to build trust so that “we can share data in a way that makes sense from a business perspective,” Yerger said.

He further urged the aviation industry to act in a timely manner with regards to digitization of documentation and processes. “We already have a very large and powerful ecosystem. Confidence and the willingness to step out another few steps are the challenges in front of us right now.” Yerger said. “We want to get there before the regulators change their minds or something worse happens than the AOG Technics event.”