Expanding Reach into the Aircraft Aftermarket Industry: How Group Company Werner Aero Soared to Success
As prominent players in the global aviation sector, SC and SCOA are leveraging their substantial resources to make significant strides in the aircraft aftermarket. This sector, which encompasses the reuse, maintenance, and disassembly of aircraft fuselages and parts, is now central to the company’s strategy of managing the entire lifecycle of aircraft. At the forefront of this initiative is Werner Aero, a Sumitomo Corporation Group company, which has rapidly expanded its presence in the aircraft aftermarket services arena.
Expanding Horizons: A Strategic Move into the Market
SC has long been a dominant force in the aircraft leasing business, a field requiring significant expertise and foresight. However, around 2016, the company identified a new opportunity to diversify and strengthen its foothold in the aviation sector. This led to a strategic decision to enter the aircraft aftermarket business, which involves the repurposing and resale of parts from decommissioned aircraft.
“The used aircraft parts business involves harvesting parts from retired aircraft for reuse, or in other words, aircraft recycling,” explains Toshinori Kondo, Executive Vice President of Werner Aero. “There are more than 1,000 different parts that can be removed from a retired aircraft and reused, ranging from large parts like landing gear and auxiliary power units, to cabin seats and panels. We take used aircraft parts and Werner Aero repairs and sells these parts.”
This move was not just about diversification; it was also about meeting the rising demand for sustainable practices in aviation, as SCOA Aerospace Department Director Daiki Sato notes. “By utilizing used parts that Werner Aero sells, not only do airlines save costs and efficiently maximize the use of existing aircraft, but it also contributes to saving new materials and new resources, which is ultimately promoting sustainability.”
Werner Aero, founded in 1993, has built a robust reputation as a global aviation asset management company and aftermarket supplier of logistical solutions to airlines, MROs, and aircraft leasing companies. At their headquarters in New Jersey, a vast 2,500 square meter warehouse houses more than 10,000 aircraft parts. Their comprehensive, tailored solutions focus on the sale, lease, and management of aircraft, engines, and components. Werner Aero’s commitment to safety, quality, innovation, and integrity ensures they remain a trusted partner in the industry.
Overcoming Pandemic-Induced Challenges
The timing of SCOA’s entry into the aircraft aftermarket coincided with the outbreak of the COVID-19 pandemic, which brought unprecedented challenges to the aviation industry. However, rather than retreating, SCOA viewed the pandemic as an opportunity to solidify its position in the market.
“We had faith that the world’s airlines would take off again,” Kondo said. “While many viewed our market entry during the pandemic as risky, we managed to convince the company that betting on a field experiencing a temporary downturn, yet destined for growth, was a wise decision. As a result, in 2022, we were able to team up.”
“Werner Aero has decades of experience buying and selling aircraft parts in the market,” Sato noted. “This has created a wide network of both sourcing and customer base and accumulated a wealth of data imperative for growing the business.”
The Expertise and Capabilities of Our People
The successful execution of SCOA’s strategy traces back to the expertise and capabilities of key individuals like Kondo and sales team member Yuhei Yagi, who have been instrumental in driving Werner Aero’s growth. Both bring extensive experience from their previous roles within Sumitomo group and have played pivotal roles in establishing Werner Aero as a key player in the industry.
Having joined SC in 2016 and currently part of the aftermarket parts sales team, Yagi explains, “As a sales representative, I make proposals and sell parts. Our clients are primarily North American airline companies and aircraft maintenance providers. My main job is to communicate closely with clients to identify their needs and to stay fully on top of our inventory and market prices to link this information to sales.”
Aiming for Leadership in the Aircraft Aftermarket
Looking ahead, Werner Aero has ambitious plans to further expand its operations. The company aims to double its workforce, increase the number of aircraft it handles, and expand its warehouse space within the next few years. This growth is driven by a commitment to leadership in the aircraft aftermarket, a commitment shared by SC and SCOA.
“The aviation business is a massive industry that affects everybody’s daily lives, which means we have a responsibility in society,” says Sato. “The expansion of the aftermarket has created an opportunity for us to lead the market and we intend to put all our effort into new business development.”
Yagi, too, is deeply committed to the company’s growth and success. He approaches his work with a sense of responsibility and pride, knowing that every single part Werner Aero delivers becomes part of a greater whole to keep aircraft flying safely through the skies.
“We strive to build relationships with our clients that encourage them to call on us in times of need by fulfilling every job we take with precision and speed. The aftermarket is often summed up in just one word, but it is a very broad industry. I intend to gain solid experience in this field, build relationships with several major market players, and acquire expertise that will be useful in implementing Sumitomo Corporation’s strategies in the future.”
With a dedicated team and a clear vision, Werner Aero is well on its way to becoming a leader in the aircraft aftermarket industry. The company’s commitment to innovation, sustainability, and customer service positions it as a frontrunner in the evolving aviation sector.