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Components Move Upstream

Airlines are offloading their component supply chain management to OEMs and service providers.

MOST AIRLINES EXPECT their inventories of components to decline in 2010 and to make more use of vendor-owned inventories and pools, according to preliminary results of an Aerostrategy-IATA survey. Few doubt the current shift in part stocks upstream in the supply chain, but major questions remain. Is this a long-term trend or a short-term reaction to intense financial pressure? How widely will it affect airlines, especially major carriers? Will most stocks be held by airframe or component ...

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