A NEW COMPANY has propelled itself into the top level of the world's spares resellers with a $400 million cash deal to buy Delta Air Lines' surplus-parts inventory.
Avatar Alliance believes that the acquisition of some 17 million parts for 12 aircraft types "...may be the largest transaction of its type", and places it among the "top three or four" redistributors.
Stratford, Connecticut-based Avatar is a partnership of six companies under general partner CDP. Thomas Industries provides expertise in inventory appraisal and liquidation; Greenwich Financial Group management and operations; and Access Capital financial management. Established distributors Aero Controls, Integrated Technology and Intertrade provide technical and marketing expertise.
"We intend to be a major force in the industry," says Avatar chief-executive William Gardner. The company is seeking "additional substantial inventory acquisitions" and has the capital resources to complete further cash purchases of the magnitude of the Delta deal, it indicates. Further US and overseas distribution centres will be added "as needed".
Transfer of parts from Delta to Avatar's Atlanta, Georgia, distribution centre is under way. Surplus inventory for the Boeing 757 and 767 and Lockheed L-1011 has been transferred, with receipt of parts for the Airbus A300 and A310; Boeing 737-200/300 and 747; and McDonnell Douglas DC-9, DC-10, MD-82/88 and MD-11 to be completed within two months.
Mindful of concerns over bogus parts, the origin and history of each item is being reverified by Avatar. The contract with Delta provides for "...100% inspection, documentation and traceability of each item prior to transfer to Avatar", says Gardner.
Source: Flight International
