Jet Conversion looks to capitalize on the growth outlook and the ongoing part requirements for these aircraft. The company will continually innovate while disrupting the current procurement, logistics and sale of parts using technology and third-party logistics that have proven successful during the pandemic. Transparent pricing will be available for many of the high-usage parts, cutting down on the resources of both the buyer and seller. The business will use internally developed algorithms to properly price and replenish stock. Use of emerging blockchain technology will be implemented to capture all paperwork and make it available to buyers. With blockchain, an operator can track every component of every airplane and know its full history, current status and location. Currently, only the most valuable parts – such as engines or auxiliary power units – get this level of scrutiny, but we believe as the technology becomes more readily available, more operators will come on board. Blockchain technology makes it easy, fast and inexpensive to keep tabs on all inventory.
The company was formed on 10-15-2020, to quickly come to market with a platform that can take advantage of the major airlines’ current large inventory and the number of aircraft available for disassembly for their component parts. Using a combination of technology and industry knowledge, the principals will be able to quickly scale. All efforts will focus on the major cargo airlines and their current and future fleets. The initial target will be the Boeing B767 and B737 freighter.
Due to the founders’ deep roots in the aviation aftermarket, service contracts will be in place at inception for each aspect of the plan. This includes the sourcing of inventory, aircraft, harvesting facilities, refurbishment companies, the traditional sales team, application development, storage, logistics and shipping. Each contract will be with a best-in-class vendor, with various performance and pricing guarantees that will give ECP firm control of overhead costs, aiding in the transparency of pricing. The goal is to virtualize as much of the business process as possible leaving the core team to concentrate on acquiring inventory and developing customer contacts.
As we acquire inventory, it will pass through our quality control department and be made available for sale. When we acquire aircraft, they will be moved to the harvest facility by the seller. All aircraft, when feasible, will be freight on board (FOB) their final destination. Once the aircraft arrive, the engines will be sold and the harvest process will begin. The depth of the part removal will be based on our algorithm developed over decades of examining what ultimately sells in a set period. There will be three tranches of material based on sale in a year or less, one to two years, and two to three years. All remaining material will either be recycled or sold to suppliers that hold material for longer sale periods.
The most desirable material will go to pre-chosen overhaul shops to be repaired and tagged with an FAA/EASA return-to-service tag. Management will make sure each of these shops is currently on the “approved vendor list” of our prospective customers. This will be possible based on our relationship with the C.A.S.E. Organization, which maintains a database of FAA and EASA Repair Stations that have passed a 1A Audit of their facilities. In addition to the audit, our personnel will make sure the overhaul shop is on the usage listing of the target cargo airlines.