Jet procures aircraft components in bulk purchases, and mostly sells its own components as a re-seller. This helps to mitigate overhead expenses. Jet has excellent relationships with high-quality vendors. Jet’s vendors offer a wide range of materials needed for the distribution of aircraft components at competitive prices.
Products and Services
Aviation companies primarily purchase component parts that include rotables, repairables, expendables, and consumables. Rotables include pumps and landing gear and also account for approximately 80% of all parts purchased and 20% of all transactions. A standard BoeIng 747 jetliner can contain more than 3 million parts. Jet trading services consists of the acquisition and dismantling of aircrafts for sale. Trading services are classified as engine sales and other aircraft components that are sold within three months of aircraft acquisition. Since 1992, the aircraft Industry has disassembled aircrafts on a more frequent basis with the parts being sold off. Within six months of acquiring an aircraft, Jet shall attempt to recover the majority, If not all, of its investment through trading. Any remaining parts shall be sent to Inventory for future sale.
Disassembled aircraft parts are sent to inventory for bulk sales. Inventory can also be sold as brokered sales. Brokered sales are defined as the purchase and immediate resale of materials or parts. Jet may purchase a part from an independent third party to satisfy a customer need. Jet usually purchases a part when it is not currently in stock or Inventory.
Jet also receives revenue through consignment of inventories. Margins earned through consignments are lower than other lines of service due to, high storage and reporting expenses. Jet believes consignment arrangements provide significant strategic value and opportunity with operators and overhaul/maintenance facilities. Jet’s Inventory is held at its facility, tagged and then sold on an as needed basis to third parties.