The disposal of the spare supplies of MD82
Date: 2010-06-03

On April 30, just before the opening of the World Expo’, two guys, tired but happy, boarded on Flight FM9205 from Shanghai to Xi’an. They are Luo Ning and Wang Xucong from CASC Northwest Co., Ltd. They had just finished the one-month work of checking out and loading spare supplies of MD82.

By the time of boarding, they had been working for 36 hours in the air supplies warehouse of China Eastern Airlines located in Shanghai Hongqiao Airport. At the sleepless night, they had worked with representatives from both customers of USA, Australia, France and New Zealand and shipping companies even without time to enjoy the gorgeous fireworks at the opening ceremony of the World Expo. Representatives from the foreign companies transported and loaded the supplies, and they both carried out checking in the containers. For the whole night, they had loaded 8 containers with 40 feet each which were transported to Shanghai Harbor.

Until then, CASC Northwest Co., Ltd., by working closely with foreign customers and under great support of China Eastern Airlines, had completed the one month work of checking out and loading the surplus supplies of MD82 at 5 China Eastern Airlines warehouses at Shanghai Hongqiao, Hefei, Shijiazhuang, Jinan and Qingdao. A total of 16 containers, 40 feet each, were loaded with high price components of aircraft systems and a large amount of consuming parts which were shipped to the appointed harbors overseas. The cooperation between CASC Northwest Co., Ltd. and China Eastern Airlines on surplus supplies management has taken a substantive progress.

The project of MD82 surplus air supplies disposal launched the surplus air supplies pooling agreement signed by CASC and China Eastern Airlines at Beijing Airshow in Sept. 2009. China Eastern Airlines wished that CASC Northwest Co., Ltd. could support the airlines in handling retired aircraft, engines and air supplies, in which the disposal of surplus air supplies of MD82 had the priority. As all air supplies in the cooperative projects proposed by China Eastern Airlines are saturated or to be saturated in the market and the airlines has missed the best opportunity in disposing the air supplies, it is rather difficult in handling this spare air supplies. When taking over the project, CASC Northwest Co., Ltd. on one hand tries to apply all the market resources to find a way out for these air supplies; and on the other hand, keeps close contacts with the airlines in terms of MRO Dept., Planning and Financial Dept. and the high executive level for information exchange and find the solution to the problems of the present system. Relative executives of CASC participated in the coordination and communication in person who has played an important part in obtaining substantive progress. It took CASC Northwest Co., Ltd. over a year to find a buyer and finish the transaction successfully finally.

Spare air supplies pooling is the key project of CASC Northwest Co., Ltd. in recent years designed according to the development strategy of CASC, the ultimate purpose of which is to make CASC to be a reliable comprehensive service supplier on air supplies in the industry. Surplus air supplies consignment and pooling, spare supplies disposal, inventory optimization, air supplies purchase in batches and distribution are able to help airlines save operating cost, make bad assets living, save inventory cost, and increase the air supplies support level. Comparing with the present irregular transactions among airlines and aviation manufacturers, this project will help airlines enhance the ability of surplus air supplies disposal, improve the operation level, and finally construct a support system platform for surplus air supplies in China civil aviation industry.

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