10 Ways to Avoid Aircraft Component Scammers

We’ve all been there. You purchase an aircraft component and never receive it. You've been scammed. Or you receive something that’s vastly different than what you ordered.

In either case you've been duped, tricked, and fooled into paying for something that was a lie.

Money is thrown in the garbage and you’re left having to fix it.

You think you’re alone when this happens. Sadly, you're not alone.

A few years ago we bought an INU for $15,000. The "company" was based out Atlanta. GA.

Before paying we revised the airworthiness certa. Everything checked out. The vendor sent us an AWB.

The next day, nothing showed up and nothing tracked. We called the local FedEx branch and they said they have a guy on video coming back to pick up the part.

We were officially scammed.

Thankfully for me I have a cousin in the FBI and a few friends gave these scammers a nice phone call. Over the next couple weeks we had our check back.

We can't all be so lucky every time.

We’ve also encountered a $30,000 fraudulent wheel assembly purchase out of Turkey. We avoided it using the tips below.

Smell the scammer

[Tweet "If it looks like a scammer and it smells like a scammer then it is a scammer. #avgeek"]

During your first communications you’ll have clear signs of what type of person you’re dealing with. He probably even smells funny through the phone. If you smell a stench, hit the trench.

Reliable partners are completely transparent. You can find them online, they’ll video chat with you and they’ll reply to you during all hours of the day.

Scammers want to keep a low profile and they ALWAYS use aliases. It’s your responsibility to connect the dots. If the dots are easier to connect, you have a legit company.

Disclaimer: just because they’re legit doesn’t make them good. Legit companies can still be horrible to work with.

Ways to avoid being tricked

We’ve been tricked into buying fraudulent aircraft parts numerous times. It's tough to spot especially if you're in a rush.

We’ve also received parts that weren’t what we ordered and getting it resolved was a pain.

Here is a list to help you avoid be scammed. If you’re dealing with someone that resembles these be cautious.

1. They don’t have a professional website.
2. They have a standard email address like @gmail or @hotmail.
3. They don’t give you their phone number, better yet they hide their mobile #.
4. They write emails unprofessionally.
5. You request documents and it takes then a couple days to get them to you.
6. You request a picture of the unit but all you get is one picture fuzzy looking thing.
7. You request a picture of the id plate and the S/N doesn’t match their paperwork.
8. You ask if they take credit card and all they take is wire transfer.
9. You ask them to fill out your QA audit form and they don’t have an internal QA policy and they can’t send you a copy of their QA manual.
10. You can’t find the person you’re purchasing from on the internet.

These are the best ways to spot a scammer. Professional aircraft component scammers have to keep running. They lurk in the shadows.

When talking with them something will always be suspicious. Keep ears and eyes open.

Better yet, if they resemble some of these points above, run away.

Calculate Aircraft Rotable Lifecycle Costs in 7 Easy Steps

Every time you buy an aircraft rotable, how much does it cost your operation? I’ll spare you the pain of having to answer that. It’s not the initial cost you acquired it for. Everything you buy, every part you touch has reoccurring cost, buying an asset for $10,000 doesn’t mean it’ll only cost you $10,000.

The direct cost (the purchase price) is the most common cost most purchasing and logistics departments focus on. I’m sure you’re the same way.

When you buy an aircraft rotable, knowing its total lifecycle cost is a good strategy. It gives you a clear insight on where you’re bleeding money.

Here are 7 easy steps to nail down your aircraft rotable lifecycle costs:

Know your direct cost

Direct cost is your best friend. It’s who you spend the most time with. You go on long friendly dates and prefer they pick up the bill. You focus on lowering your cost every chance you get.

Your goal is to get the best possible upfront cost, right? Not quite but it’s a good start.

Let’s make two comparisons. A supplier sells you a “cheap” part and is unreliable or can’t create a total value solution for you. Your other supplier is slightly higher priced but always delivers and does what he says he’s going to do. He also gives you many opportunities for comprehensive support solutions, creating tons of value.

Based on these two examples, you want to go with the value creator despite the initial higher direct cost. This is the way you want to begin thinking.

Either way, knowing your direct cost is the starting point not the finish line.

Know your processing costs

This is one you don’t think about often.

How much does it cost you to cut orders and ensure delivery? In order to determine this expense look at your labor costs directly associated with ordering. Spending less time babysitting orders and focusing labor hours on critical projects is important.

Chasing suppliers is a huge productivity waste and a costly burden.

Know your freight costs

In the last week I witnessed an airline spending $12,000 on a carry on AOG freight solution for a couple expendables. Yikes!

With every purchase it’s imperative to know your freight costs.

Just freely shipping everything priority freight is a costly mistake, especially for routine orders. Every decisions you make must have a cost associated to it. A cost of money or a cost of value crated.

Know your holding costs

Stocking aircraft parts makes you feel comfortable. It’s your safety net. Nowadays you have plenty of outsourcing options so don’t get caught up in this myth of overstocking. Being married to your parts is a thing of the past.

You’ll spend 20% of the direct costs on every asset you own every year in holding costs.You spend $10,000 to stock a component for 2 years and you now just accumulated $4,000 in holding costs. Not to mention the capital you just tied up on the shelves.

Know your repair costs

You buy a component, great! How much is this going to cost you when it’s removed for routine, or non-routine repair?

Knowing the cost to upkeep your assets is good business. Outsourcing this is even better business.

Know your change or environmental costs

What if upper level management decides to upgrade or change your fleet?

Having a surplus of “just in case” inventory sucks capital and creates a liquidity problem. The more you have the more inflexible you become. If something in your operations strategy changes you’ll be required to liquidate your excess inventory. Know this risk and plan for it.

Know the true value your aircraft rotables create

Keeping your fleet in the air is priority number 2, first is filling your seats with passenger or your belly with cargo. Every strategy you undertake, your component support strategy must play a deciding factor. Simply buying components as needed on an AOG basis or overstocking spares is not good strategies to adopt.

Where can the most value be created for you?

All of these steps are important, but nothing is as important as a reliable supply chain. Whether you decide to outsource 95% of your aircraft maintenance activities or relay on an AOG partner, you must think long and hard about the total value they create for you. Simply bringing on more suppliers and throwing out RFQs to the world is a chaotic solution. Streamlining your focus and being diligent on the people you work with will help you resolve all of your cost problems.

Think about it. It’s difficult to envision but I assure you it makes a world of a difference.

Do you have cost problems? Is reliability an issue? We can help. Fill out the form below and let’s chat about how you can overcome your current problems.

Why Total Cost of Ownership is Your Secret Sauce to Aircraft Component Purchases

You’re always stuck on the purchase price. It’s the first and last thing you think about. It slaps you across the hand and says, look at me, I’m important. Sadly, you’re wrong. Money and time is lost by this way of thinking.

Total cost of ownership is a different story. It’s when buyers go beyond the initial price and develop a more holistic view of how much a certain asset will cost over time.

We can take this vary concept into our daily lives. Don’t be fooled when you bring a dog into your family. Whether you adopt ($0) or buy one for $2,500 you’ll spend way more over the course of it’s beautiful life. Or don't be fooled if you buy a car for $30,000 and think it’ll only cost you $30,000 over it’s useful life.

Aircraft component purchases must be treated the same way. Don’t be fooled spending $30,000 on an INU and think it’ll only cost you $30,000. What about freight costs, processing, holding costs and I’ll continue the list if you want me to. In fact, if they direct cost is fair market value (+/- 5-10%), then it’s the later you deserves more of your attention

The Total cost of ownership methodology will save you heartache and pain (yes, I just quoted this song). Acquisitions must be viewed in this way…always.

[Tweet "Don’t be fooled spending $30,000 on an INU and think it’ll only cost you $30,000 #NeverForgetYourWings"]

Determine the overall lifecycle cost of your aircraft components and save money

Looking at the direct cost alone is fool heartedly. You’re procurement activities are global and there’s a myriad of costs that you must consider.

For an airline or MRO logistics and procurement activities are direct costs, freight, processing, labor, installation, holding costs, comm unication, problem resolution, warranty, training and productivity losses.

By looking at direct costs, indirect costs, transaction costs, and disposal costs, you as a purchasing professional get a more co mplete picture about a specific financial investment. I don’t care if it’s 1 part or 100. Looking beyond the initial cost will shock you into what you’re actually spending.

Here are some real world examples we’ve encountered:

• An airline needs 10 components (a mix of rotables and expendables) and focuses solely on direct costs. They decide to purchase all 10 components from 7 different suppliers. Some suppliers are reliable while others have failed them in the past. The airline will incur 7 different processing and freight costs. They’ll be forced to resolve any issues that arise and be hit with productivity losses. They overlook the cost advantages of streamlining.
• A large MRO buys expendables from all over the world and becomes AOG for such small items on a frequent basis. They overlook the importance of TCO and the cost reductions an on demand or JIT strategy will create.
• An airline buys millions of dollars in inventory. They overlook the long term expenses associated with holding inventory. It eats away at their cash flow and ties up millions of dollars of capital on the shelves.

You now understand why I said “fool heartedly.”

Buying based solely on direct cost is disastrous to your bottom line. Get a more holistic view of what you’re buying and save big.

Do you focus all your attention of direct costs? Are you losing money by the day? We can help as we help hundreds of airlines, MROs, lessors, and military’s every week.Fill out the contact form below and we’ll be in touch in no time.

Happy National Aviation Day 2015

What are you waiting for? Get up and celebrate...it's National Aviation Day.

Our friends over at Wikipedia explain the meaning of  National Aviation Day:

[Tweet "Today is the day to celebrate #aviation! #NationalAviationDay"]

"The National Aviation Day (August 19) is a United States national observation that celebrates the development of aviation.

The holiday was established in 1939 by Franklin Delano Roosevelt, who issued a presidential proclamation which designated the anniversary of Orville Wright's birthday to be National Aviation Day (Mr. Wright, born in 1871, was still alive when the proclamation was first issued, and would live another nine years). The proclamation was codified (USC 36:I:A:1:118), and it allows the sitting US President to proclaim August 19 as National Aviation Day each year, if desired. Their proclamation may direct all federal buildings and installations to fly the US flag on that day, and may encourage citizens to observe the day with activities that promote interest in aviation."

You're Crazy Focusing All Your Attention On Repair TAT

You put a ton of effort in shortening your repair turn around times. You, just like me, are crazy.

Everything you do pushes the MRO for an early completion. You yell, scream, beg and maybe even threaten.

When you have this approach is your effort in the right place? Is your time and money being allocated to the right cause?

Yes and no, but before you start throwing CMM books at my head trust me, I get it. Repair TAT is important.

It's crucial yet I urge you to not focus all your attention here.

[Tweet "Focusing all your attention on repair TAT is crazy. #avgeek"]

A wasting your time story

We recently received thrust reversers. We began inspecting them and soon realized that these beauties had more modifications done to them than a Los Angeles actor.

They were fitted onto a modified aircraft. They're literally the only thrust reverse's of their kind on the planet.

When we were preparing for this project, they took 12 days to get to us off of an aircraft undergoing a routine c-check. We scheduled our truck to pick the units up but we got a call that the thrust reversers we’re improperly crated and they had to bump the pick-up. It took 2 additional days to get them into transit.

Once they got to our facility they were inspected and the nozzle was beyond physical repair. We could save these units but the price of repair would become double the standard repair rate. Remember, these are the only two of their kind.

A lot of work will have to be done to bring these two units back to airworthy condition. After the initial quote it took 14 days for approval…and yes while the c-check was still in progress. No loaners, no exchanges, no replacements, we had to repair these units.

We still had 21-30 days after approval to get these units done and when they were approved, it was advised that we get these done fast. Yet, it took 28 days to get the thrust reversers to approve the quote.

And that leads me to my next observations…

Focus your efforts on internal processes along with reducing aircraft component repair TAT

From this story you can see where some of the problem occurs. Now, the fault isn't pointed at anybody. Some decisions are hard to make and yes, sometimes it takes multiple approvals to get things done. I get that.

In this situation there's nothing the MRO could do to rush as a large chunk of time was spent in processing and outbound logistics activities.

By focusing some of your time and effort on internal processes you can cut your aircraft component repair time dramatically. In the story I shared, half the time could have been saved.

Start to focus more attention on areas that create the longest drag, meaning where does the component do most of it’s sitting and waiting.

Here are some areas to start on:

• Component removal
• Transport to stores
• Quality control
• Outbound processing
• Logistics
• Inbound processing
• Installation

There's plenty of areas to focus on but start with one. It'll be less stressful and less bureaucratic to make small changes over time.

Reducing your internal process will help reduce your component TAT and you’ll see a dramatic improvement in your overall rotable cycle times.

Are you experiencing long repair TATs? Fill out the form below as we're very confident we can help.

In The News: Revolutionary Aircraft 'Fly-Bag' Limits On Board Explosion and United Airlines Hands Out Million-Mile Bug Bounty

Aircraft 'bomb bag' limits on board explosion impact

A new system to resist terrorist bombs smuggled onto aircraft has been tested in dramatic experiments. A device called FlyBag is designed to absorb the shockwaves and shrapnel caused by explosions. Read more here.

Article By: David Shukman Science editor

[Tweet "Aircraft 'bomb bag' limits on board explosion impact"]

United Airlines Pays Man A Million Miles For Reporting Bug

TWO MONTHS AFTER United Airlines launched a bug-bounty program to reward researchers who report flaws in the company’s web site and apps, a researcher has received 1 million air miles in the first reward given. Check out story here.

Article By: Kim Zetter

What's the difference between AR, SV, RP and OH aircraft part conditions?

This is series 2 of our aircraft part conditions defined. In our last post we talked about FN, NE, and NS. From the feedback we got, this cleared up much confusion.

aircraft-parts

Now, were talking about unserviceable and airworthy conditions.

These conditions are looked at vastly different in various parts of the world.

Some people will never use a "SV" component while others prefer it. On both ends of the spectrum you have AR which is removed from the aircraft and deemed unserviceable and OH which is the closest thing you get to NE. We'll explain this a little more as we get into each condition.

When you think of these conditions you first must determine your primary objective, is it price or quality? Answering this will help guide you to the right condition for your maintenance goals.

[Tweet "With aircraft part conditions, first determine your primary objective #avgeek"]

As Removed (AR)

Skylink: As Removed Aircraft Part

This is a component that was pulled off an aircraft. Spoiler alert, that's where "as removed" comes from.

Sometimes she'll come with a reason for removal but often times in the part out world she'll come with nothing, just a removal tag and trace. It could be repairable or beyond economical repair (BER) for all you know.

These items must go to a certified MRO for functional test or repair.

Serviceable (SV)

Skylink: Serviceable Aircraft Part

This condition is intertwined with the repaired condition but there's minor differences depending on who you're talking to.

For a SV unit you'll know that the unit has been functional tested in accordance with OEM specifications and that it'll come with an airworthiness certification depending on what region you're in. Here as you know it's the FAA 8130.

Typically these units will not come with a teardown but only an airworthiness certification stating it passed functional test and it's able to be installed. This varies depending on MRO.

Repaired (RP)

Skylink: Repaired Aircraft Part

The repaired condition is a serviceable unit that requires a little more work.

With repaired units minor piece parts are used to bring the unit into serviceable condition to meet the functional test requirements. Gaskets, bolts, and small expendables are the normal piece parts used in repairs.

This condition will come with an airworthiness certification and teardown detailing what was done and what piece parts were used in the repair.

Skylink: overhauled aircraft part

Overhaul (OH)

This is the most work an aircraft rotable can go through.

Skylink: overhauled aircraft part

This is the "best" of all conditions and requires the most work. With an OH unit you'll be sure that your units will receive the 100% OH kit according to the CMM and any other components to bring it to such a condition. Overhauled units can also be painted and cosmetically pleasing so you know you're not getting a hunk of metal.

Warning: In some situations, MROs will tag certain components as OH despite the CMM not having proper OH specification and they should be deemed RP. It's primarily used for marketing to sell a higher priced unit based on it's classification. We use to see this a lot with pitot tubes and other accessories.

That's it. Those are your 4 rotable condition classifications.

Depending on your operation, make the choices that best fits your needs.

Are you in constant need for aircraft rotables? Fill out the form below and we'll be more than happy to help you out.

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Boeing aware of metal 'fragility' issues before aircraft part plunged into Shanghai factory

Aerospace giant Boeing has ordered airlines around the world to address a "fragility" problem after a section of landing gear from one of its 777 passenger jets broke off shortly after take-off from Shanghai last week and plummeted 3,700 metres into a city suburb. Check out story here.

Article by: Danny Lee

Inspection Failings Could Cost SkyWest $1.2m

The FAA has proposed a total of $1.2m in civil penalties against SkyWest Airlines for failing to correctly inspect aircraft. The US regulator has proposed a penalty of $911, 000 alleging that Utab-based Skywest. More details here.

Article by: MRO Network

3 Incredibly Important Reliability Areas You Need To Know And Improve On

What is reliability? Since 1988 we’ve been playing the reliability game. The gamble of who to trust and what actions to take.

Today, much has changed. Everyone says and does the same boring thing, over promising and under delivering.

It’s common to run into reliability problems. It even gets to the point that some days you just want to run away.

Just ask our supply chain team.

Some days I have to peal them off the ceiling as they explode with frustration. I even have to peal myself off the ceiling some days.

Whether it’s logistics or even aircraft components, reliability is a game of chess. One wrong move and you lose time and money. With the right move you’re efficient. Time and money become your ally.

Many people talk about reliability, but unless you want to pay millions of dollars in consultancy fees, very little guides you in the right direction.

For now, let’s cover the basics…

Aircraft component reliability

The primary goal is to keep your components on wing for as long as possible. We’ll call this the dumbed down version of a much more complex issue.

At this point you’ll want to collect data and information about your aircraft components statistical analysis. This will give you valuable feedback on the data if irregularities developed in operation.

If you’re the type to geek out on this stuff, read this.

The key is to build a foundation for a component reliability program. Which ATA chapters do you have the most trouble with? Can you outsource solutions?

In order for you to answer these questions, having a firm understanding of your fleet and activity of components’ removals is very important.

[Tweet "Start slow and build your reliability program over time."]

Supplier reliability

It’s amazing how many people overlook supplier reliability.

I understand price is important, but it’s not the first or last decision. Your primary objective should be to work with people who can deliver and create the most value to you. 

When you look into your supplier reliability program answer these questions to help build your foundation:

• Who answers you back the quickest?
• Which company has an account manager that responds to you any day of the week, at any time?
• Who helps you resolve issues?
• Who provides solutions in addition to just selling you something?
• Where is the greatest value for every dollar you spend?
• Who solves problems without creating more problems?
• Who do you trust?
• How do their parts look when they’re delivered? Are they in good condition and packaged properly?

Answering these simple questions will guide you to building your supplier reliability program. You’ll avoid the people that over promise and under deliver.

Logistics reliability

If turn-around-times (TAT) keep you up at night then logistics is its angry step brother.

We live in a small world where we can get anything, anywhere in a short period of time and yet complications are still extremely common.

You may have experience with high import taxes, customs delays, airlines losing your packages, shipments being bumped and re-scheduled to a later date, damage parts, and the list goes on and on.

I have found the best logistics reliability program works with someone who is easy to talk to and helps you resolve problems. It’s really that simple.

I have worked with so many freight forwarders and 95% of them give me a massive headache. I feel one coming on now. We found 3 solid partners, one for routine freight, one for small parcel and one for AOG shipments and they are the only people we’ll use.

Build your logistics reliability program around your specific needs and the ease of communication should be very important to you.

Building a reliability program around aircraft maintenance and components, suppliers and logistics will help make your hectic aviation life easier.

Start slow and start now.

Do you have reliability issues? We would love to help you. Fill out the form below and we’ll tackle this together.

Account Manager Superstar

Thank you for taking the time to get to know us and allowing us to get to know you better. We're looking for the next person who will be a perfect fit to the Skylink team. Is it you? If you think so, read the open role below and let's get together.

Who is Skylink?

We're a dedicated team working together to bring efficient supply chain solutions to international airlines, MROs and military aircraft fleets. We deliver this by following our "Never Forget Your Wings" mantra. Every day we help fleets remain in the air and avoid the complexities of aircraft maintenance.

Skylink started its humble beginnings in 1988 from a defunct airline where founder Jim Anglin was an executive. He started by providing rotable sales to anybody that needed them. Today we’ve molded into a supply chain powerhouse. We're thrilled to work with dedicated airlines, MROs and military clients in over 30 countries. They look to us to streamline their supply so they can worry less about fleet maintenance and reduce the complexities felt by so many aircraft maintenance and purchasing professionals.

Where will I work?

You'll work at our Skylink hub in Sanford, FL. You'll have your own workspace and organize it with what makes you happy and inspires you. You will work daily with various Skylink teams, clients, and supply chain partners that span every country on this fine planet we call home.

How do things happen at Skylink?

Here at Skylink we have no central management and no hierarchy. We have dedicated teams with specific roles and coaches to guide the knowledge base. Teams are able to make their own decisions as long as they involve people affected in the decision and people who have knowledge in the decision topic. We are constantly innovating and everyone's ideas matter. Flexibility and improving is our middle name. We all work to maximize the value we create for customers and to create "WOW" experiences every step of the way.

What we're looking for

We're looking for an Account Manager who will take charge of customer accounts and focus on developing new accounts.  Our dedicated Account Managers work closely with customers to create "WOW" experiences at every touch point whether it be phone, email or any other medium.

You'll work closely with customer happiness engineers, content creators, account manager copilots, and supply chain champions to provide efficient supply chain solutions for customers and potential customers.

In order to provide proactive solutions you'll need to learn the solutions we provide and how to strategically quote client projects to make a positive impact on their operation. You’ll also have to be comfortable contacting people and providing value based solutions around their specific pains. Sales experience isn’t necessary but a relational approach is.

Being organized is essential and having a cross-cultural mentality is a must as we work with many people from all over the world. We develop relationships first and accounts second. Even in stressful times you’ll need to keep calm and focus on creating the “WOW.” You'll be tested to think outside of the box and avoid industry norms.

We strive for a balance of being a team that feels like a family. This means we share feedback regularly, support each other's self-improvement efforts, and take mistakes as opportunities to learn together. Using your mind to innovate is highly regarded.

If you can build deep relationships with customers and aren't afraid to contact potential prospects to resolve their pains you'll be a perfect person for this role.

What we value

We are deeply passionate about working as a team and going over and beyond for our customers. Creating "WOW" experiences, be willing to adapt and drive change, hustling and driving maximum efficiency, accepting problems and solving them, building a team-oriented approach, and having passion and integrity are the core values we live by. If you feel you embody each one of these then you'll be an AMAZING addition to our team.

Perks

Technology: You'll get hooked up with technology that'll make your life easier so you can do your best work.

Salary: Base salary + tiered commission for account managers. We've created a salary formula that takes experience and seniority into account and changes based on this formula.

Vacation: Take time for you and your family.

Health insurance: You'll have the option to take on our health insurance and every year we'll take on a higher percentage of the payment.

Work-space: You'll have your own work-space so you feel like a champion.

Be innovative: Take a portion of the time you work to be innovative, to come up with new ideas and to guide the implementation.

Be human: Feel free to be yourself, no absurd dress code and no policies telling you to be someone different.

Travel: If you need to visit customer and supply chain partners, travel will be taken care of.

Celebrate life: Every month we celebrate the birthday's and get together over lunch.

Healthy living: We strive for a healthy mind and body. Nate Anglin has focused 10 years of his life to bringing this concept to the business world. He'll help you navigate this often confusing topic for your life if you need guidance.

Still reading? We want to hear from you!