The Hidden Cost Of Aircraft Spares: When a Small Part Grounds a Multi Crore Aircraft

In aviation, the price of a component is only one part of the equation. Its availability, reliability and impact on aircraft operations can be far more consequential.

An aircraft engine igniter plug may be a relatively modest item in the overall economics of aircraft maintenance. Yet its unavailability, particularly when replacement is required to maintain airworthiness or dispatch eligibility, can have consequences entirely disproportionate to its purchase price.

Consider a business jet scheduled for a series of charter flights. During routine maintenance, an engine igniter plug is found unserviceable and requires replacement. The maintenance team identifies the correct part number, but the regular supplier quotes a delivery period of three weeks.

The aircraft may be worth ₹100 crore or more, but its continued operation now depends on the availability of a comparatively inexpensive component.

The operator has two choices: wait for the part through conventional procurement channels or explore legitimate alternative sources that can deliver the required component sooner.

This seemingly straightforward situation exposes one of aviation’s most overlooked commercial realities:

The purchase price of an aircraft component and the cost of not having it available when needed are two very different things.

A US$11 Billion Problem for the Aviation Industry

The problem extends far beyond individual aircraft operators.

A joint study by the International Air Transport Association (IATA) and Oliver Wyman estimated that aerospace supply-chain challenges would cost the global airline industry approximately US$11.3 billion in 2025.

The estimated financial impact was distributed across several areas:

Source: IATA–Oliver Wyman, Reviving the Commercial Aircraft Supply Chain, 2025.

These figures reflect broader aerospace supply-chain constraints, including delayed aircraft deliveries and engine availability, rather than shortages of individual spare parts alone.

Nevertheless, they reveal an important trend: the financial consequences of supply-chain inefficiency are being felt throughout the aviation ecosystem.

Airlines are holding additional inventory, extending the operating lives of older aircraft, leasing replacement engines and absorbing longer maintenance turnaround times.

For smaller operators, the financial impact may be less visible in industry statistics but considerably more concentrated at the individual aircraft level.

The Igniter Plug Example: Understanding the Real Cost

Let us revisit the engine igniter plug.

Assume that an aircraft requires replacement of a particular igniter plug, and the required component is unavailable through the operator’s regular supply channel.

For illustration, consider the following scenario involving a business jet:

Illustrative figures only, not an actual procurement transaction. The calculation assumes that the aircraft cannot legally be dispatched without rectification, that the part is the only outstanding constraint, and that sufficient commercial demand exists. Actual savings depend on operating schedules, aircraft utilisation and avoided costs.

The component still costs ₹1.5 lakh.

What has changed is the operator’s exposure to lost revenue, schedule disruption and aircraft unavailability.

For an aircraft with a higher utilisation rate, a time-critical charter assignment or a contractual commitment, the financial consequences could be considerably greater.

Equally, where the aircraft has no scheduled commercial activity, the direct revenue loss may be limited. Nevertheless, there may still be costs associated with positioning, alternative aircraft arrangements, parking, manpower and disrupted maintenance schedules.

This is why component procurement should be evaluated in the context of operational requirements rather than invoice value alone.

Why the Lowest Quotation Is Not Always the Best Procurement Decision

Aviation procurement departments are naturally expected to control expenditure. Competitive pricing, supplier negotiations and cost optimisation remain essential.

However, focusing exclusively on the lowest quoted price can sometimes produce a more expensive operational outcome.

Suppose Supplier A offers a component for ₹2 lakh with a delivery period of 25 days, while Supplier B offers the same eligible component for ₹2.4 lakh with delivery within five days.

The second quotation is ₹40,000 higher.

But if the component is required to return a grounded aircraft to service, the shorter lead time could protect many lakhs in operational contribution.

Conversely, where the component is being purchased for planned inventory and no immediate operational requirement exists, the lower-priced quotation may be entirely appropriate.

The correct procurement decision therefore depends on the circumstances.

Five factors deserve particular consideration:

Availability: Is the component physically in stock, or is the supplier merely offering a quotation against anticipated availability?

Reliability: What is the component’s condition, service history, modification status and expected performance?

Approved alternatives: Are there eligible interchangeable parts, repair options, exchange arrangements or other approved solutions?

Lead time: How quickly can the component actually reach the aircraft, accounting for export formalities, freight, customs and documentation?

Operational impact: What is the measurable financial and operational consequence of waiting?

A procurement function that evaluates all five is better positioned to support both maintenance reliability and commercial performance.

Aircraft on Ground: When Time Becomes the Most Expensive Commodity

In an Aircraft on Ground (AOG) situation, every additional day can affect aircraft availability, revenue generation and customer commitments.

For an airline, a delayed component may lead to aircraft substitution, flight cancellations, passenger disruption or additional maintenance expenditure.

For a non-scheduled operator, a single grounded aircraft can represent a significant percentage of its available fleet.

A company operating two business jets, for example, may lose half its fleet capacity when one aircraft becomes unavailable.

The implications are particularly serious for time-sensitive operations such as air ambulance services, emergency missions, offshore helicopter operations and specialised charter assignments.

However, urgency must never override airworthiness.

An AOG requirement does not justify installing a component with inadequate traceability, uncertain eligibility or unacceptable maintenance documentation.

The objective is to restore aircraft availability without compromising technical or regulatory compliance.

That is precisely where specialist aviation procurement expertise becomes valuable.

The Challenge of Hard-to-Find and Obsolete Aircraft Parts

Not every component can be sourced directly from an OEM or authorised distributor.

Many aircraft operating in General and Business Aviation are supported by complex global aftermarket networks.

Some aircraft types are no longer in production. Certain avionics and engine accessories may have been discontinued. Other components may be available only through approved repair facilities, exchange programmes or established inventory holders.

In such circumstances, identifying a supplier is only the beginning.

A competent sourcing exercise must also establish the correct part number, applicable interchangeability, modification status, serviceability, documentary history and regulatory acceptability.

An advertised component may appear suitable but prove incompatible with the aircraft’s installed configuration.

Similarly, a used serviceable unit may be commercially attractive but cannot be accepted merely because it carries a familiar part number.

Its installation eligibility must be established through applicable approved maintenance data and documentation, with acceptance and release performed by appropriately authorised personnel.

Illustrative Example: A Discontinued Avionics Component

Consider an operator whose aircraft requires an avionics LRU that is no longer readily available through conventional distribution.

The OEM proposes an upgrade programme costing ₹85 lakh, involving additional aircraft downtime.

Before proceeding, the operator explores the global aftermarket and identifies an eligible serviceable replacement for ₹12 lakh, including estimated procurement and installation-related expenditure.

The potential immediate expenditure avoided could be approximately ₹73 lakh.

This does not mean that an avionics upgrade is unnecessary or that the two options offer identical long-term benefits. The upgrade may improve reliability, capability and future supportability.

But the example demonstrates why operators should evaluate technically acceptable alternatives and lifecycle economics before committing to major expenditure.

Sometimes, intelligent sourcing can defer a substantial capital expense while preserving aircraft availability.

The Role of Specialist Aviation Sourcing Partners

The modern aviation supply chain is highly specialised and geographically dispersed.

A component unavailable in India may be held by an inventory specialist in the United States, a component trader in Europe, a repair facility in the Middle East or an aircraft dismantling organisation elsewhere.

Accessing these sources requires industry networks, technical understanding and commercial coordination.

This is an area where Aviatech360, the aviation services initiative of Aviana Global (OPC) Private Limited, seeks to bridge an important gap for aircraft operators and maintenance organisations.

By combining aviation technical knowledge with international sourcing and procurement support, Aviatech360 assists customers in exploring solutions for components that may not be readily available through conventional supply channels.

Its approach goes beyond obtaining quotations. It includes helping identify appropriate sourcing pathways, coordinating technical and documentary requirements, evaluating commercial options and facilitating procurement and logistics arrangements.

This can be particularly valuable for operators seeking obsolete avionics, engine accessories, specialised aircraft components, repair or exchange options, and urgent AOG support.

The underlying principle is simple: finding a component is useful, but finding the right component, with acceptable documentation, at the right time and commercially viable terms is what creates operational value.

Procurement, CAMO and Maintenance Must Work Together

Aircraft parts procurement cannot operate effectively in isolation.

The Continuing Airworthiness Management Organisation (CAMO), maintenance organisation and procurement team must remain closely coordinated.

CAMO personnel identify upcoming maintenance requirements, monitor component lives and limitations, manage technical records and support maintenance forecasting.

Maintenance teams establish technical requirements, diagnose defects and determine the necessary rectification in accordance with applicable maintenance data.

Procurement then works to ensure that the required materials and services are available within the planned timeframe.

When these functions operate independently, problems often surface only when an aircraft is approaching a scheduled maintenance event or has already become unserviceable.

A more mature approach integrates maintenance forecasting with procurement planning, identifies long-lead components early and develops qualified alternate sourcing arrangements.

This reduces dependence on last-minute purchasing and helps avoid unnecessary inventory accumulation.

The objective is not to stock every conceivable aircraft component. That would be commercially impractical for most operators.

Rather, it is to develop the technical intelligence and sourcing capability needed to respond effectively when critical components become unavailable.

From Purchase Price to Total Operational Cost

A useful way to evaluate aircraft procurement is to consider the Total Cost of Unavailability (TCU).

This is not a formal accounting standard, but a practical decision-making concept.

It considers the financial consequences associated with a component not being available when required.

These may include:

• Lost operational contribution from cancelled or deferred flights.

• Additional aircraft leasing or substitution costs.

• Extended maintenance downtime and related expenses.

• Expedited freight and emergency procurement charges.

• Additional inventory holding costs.

• Contractual disruption and reduced operational flexibility.

The relevant costs must be calculated carefully, without treating gross charter revenue as profit or double-counting expenses.

This broader assessment helps operators decide when it is commercially justified to pay a premium for expedited delivery, hold strategic inventory, pursue a repair option or engage a specialist sourcing partner.

The Way Forward: Smarter Sourcing, Better Aircraft Availability

As the aviation industry continues to face supply-chain pressures, procurement is becoming an increasingly important contributor to fleet reliability and business performance.

For India’s growing General and Business Aviation sector, this presents both a challenge and an opportunity.

Operators must balance the need to control spare-parts expenditure against the potentially much greater consequences of aircraft unavailability.

Specialist sourcing networks, technically informed procurement decisions, approved repair alternatives and closer CAMO–maintenance coordination can all contribute to improved operational resilience.

Aviatech360’s role in this evolving ecosystem is to help connect aviation requirements with appropriate global supply channels, particularly where conventional sourcing proves difficult.

The ultimate objective is not simply to purchase aircraft parts more cheaply.

It is to help operators make better decisions about availability, cost, airworthiness and operational continuity.

Because in aviation, the most expensive component is not necessarily the one with the highest purchase price. Sometimes, it is the one that cannot be found when the aircraft needs it most.

Difficult-to-Source Aircraft Parts? Explore Your Options.

Aviatech360 provides aviation sourcing and procurement assistance for aircraft operators, CAMOs, MROs and aviation businesses seeking specialized components, repair and exchange solutions, and international procurement coordination.

Learn more: https://aviatech360.com/aviation-logistics-and-procurement-services/

Illustrative examples in this article are hypothetical and are provided solely to explain aviation procurement economics. They do not represent specific completed transactions or guaranteed savings.

Reference

IATA and Oliver Wyman, Reviving the Commercial Aircraft Supply Chain, 2025.