AFI KLM E&M dedicated subsidiary for aircraft teardown business

Since 2016, AFI KLM E&M has been developing an aircraft teardown business to improve supplies of component and engine spares.

Supporting maintenance activities

Since 2018, for example, the Group finalized the purchase of two Boeing 777-200ERs. The aircrafts' GE90-94B engines were checked and returned to conformity, before being made available (via the Group's maintenance shops) as an exchange solution for airlines using AFI KLM E&M support for this aircraft and engine type. Several hundred parts from these same aircrafts will be re-certified before being sold on or used to supply the Group's global network of spares pools and repair shops, ultimately contributing to improving the Service Level to its customers and cutting maintenance costs for customers.

A structured network to manage "used" assets

Through its organization and network, AFI KLM E&M is structured in such a way as to be able to exploit the potential of these assets - components and engines - that can be re-used after aircraft teardown. As an airline-MRO, the Group has an extensive visibility over the fleet plans of its customer airlines enabling it to source the investment opportunities that are opening up on the teardown market. The teardown activities can be carried out in-house by KLM UK Engineering, which has approval for single-aisle aircraft teardown, and at Bonus Tech for engines, or else with other partners. The assets recovered are inspected, overhauled, and re-certified for use before supplying maintenance shops and spares pools worldwide. Alternatively, they may be sold on the used parts market via our AAF Spares broking joint-venture.

The AFI KLM E&M Teardown Management entity centralizes management and coordination of all these activities, from sourcing to broking and the supply of parts, and offers the agility required to rapidly take up the investment opportunities corresponding to Maintenance requirements.