The number of ATR turboprops in service has remained relatively stable over the past decade, as has the average age of the global fleet, but despite these facts the Toulouse-based OEM managed to push its services sales to a new record in 2023.
ATR’s head of customer services, Laurent Caballe, tells Inside MRO that this was due to several factors, notably the support the manufacturer extended to customers during the pandemic; its customization and flexibility; and the launch of new products such as ‘E-Power’, a reliability engineering service.
“Looking ahead, we anticipate further growth in line with the expanding fleet,” he says. “We have successfully regained many customers and established ourselves as leaders in the market.”
Caballe notes that about 70% of ATR’s services sales – which amounted to more than $400 million in 2023 – are from materials provision such as spares distribution and its flight-hour-based ‘Global Maintenance Agreement’.
These services are popular, Caballe says, because of their adaptability, For example, he says that airlines can mitigate parts price inflation by agreeing to fixed price deals for spares, allowing them to in advance for heavy maintenance expenditure.
ATR aftermarket customers also benefit from superior parts availability, although Caballe admits that the OEM has been affected by supply chain challenges, with maintenance and repair turn times increasing two to three times.
“One measure we have taken is to increase our level of speculation with suppliers. This means we have increased our orders, providing suppliers with visibility and encouraging them to invest in their industrial capabilities,” he says.
“Additionally, we have expanded our GMA pool to ensure we have an increased stock of spare parts available. Due to the longer repair times, it is crucial to have a larger inventory to meet customer demands promptly.”
For a detailed look at ATR’s services business, see the next issue of Inside MRO.