Does the British company AOG TECHNICS LTD sound familiar? Back in 2023, AOG Technics was involved in a significant fraud by selling counterfeit parts for CFM56 engines, which are widely used in commercial aircraft, particularly in Boeing 737 and Airbus A320 planes. The company falsified certifications and documentation to pass off these fake parts as genuine, leading to serious safety risks.
This fraud has raised significant concerns in the aviation industry regarding the integrity of supply chains and the potential dangers posed by unverified components in critical aircraft systems. The fraud by AOG Technics led to the grounding of about 100 planes, while the number of engines affected has risen to 180 as airlines scrambled to identify and replace the counterfeit parts in their fleets.
The financial damage to airlines was substantial, with costs related to grounded aircraft, inspection, replacement parts, and legal expenses estimated to be in the tens of millions of dollars.
How was it possible to scam the world's top industry buyers, including those employed by leading Maintenance, Repair, and Overhaul (MRO) organizations and Airlines?
AOG Technics managed to scam the buyers through a combination of sophisticated deceit and exploiting weaknesses in the supply chain such as falsified documentation and forged paperwork, offering parts at competitive prices or with shorter lead times, taking advantage of the trust-based nature of the aviation supply chain. The combination of these factors enabled AOG Technics to deceive even the most experienced industry professionals, highlighting vulnerabilities in the system that the aviation industry is now urgently addressing.
The global and complex nature of aviation supply chains made it easier for AOG Technics to insert counterfeit parts without immediate detection. Parts often change hands multiple times before reaching the end user, making it harder to trace the origin and verify the authenticity at each step.
Could the fraud have been avoided?
In retrospect everything seems easy, but anyway the answer is yes, if you have read and understood the 7 Things to know, which are: Part, Certification, Quality, Stock, Trust, Warranty, and Cost.
Part. Verify that the part number matches the specifications for your needs. Even slight variations as a “-“ or “." can make a Part Number incompatible. Some parts might have Alternate P/Ns, but this needs confirmation from the component manufacturer. Understand the condition of the part—whether it's NE, OH, or SV. New parts are typically more expensive but come with full warranties, whereas overhauled or used parts might offer cost savings but with different levels of wear and limited warranties. Ensure the part is in serviceable condition and hasn't reached its life limit. Check for any signs of wear, corrosion, or damage.
Certification. Verify that the part comes with proper documentation, including airworthiness certificates, maintenance records, and traceability documents. This helps ensure that the part is genuine and has a documented history. Ensure that the parts are certified by relevant aviation authorities, such as the FAA (Federal Aviation Administration) or EASA (European Union Aviation Safety Agency). Certified parts comply with strict safety and quality standards.
Quality. Check for aerospace industry certifications, such as those from the EASA, FAA, ASA (Aviation Suppliers Association), or IAQG (International Aerospace Quality Group). Is possible to verify the validity of an AS9120 distributor certificate online, depending on the issuing agency.
Stock. Check if the part is in stock and how quickly it can be delivered. Some parts may have long lead times due to manufacturing or supply chain issues. If your aircraft is on the ground (AOG), some suppliers offer expedited services to minimize downtime.
Trust. Purchase from a trusted supplier with a proven track record in the aerospace industry. Look at reviews, testimonials, and references to ensure the supplier is reliable, especially when dealing with high-cost parts.
Warranty. Understand the warranty terms and conditions, as well as the return policy, especially for high-value parts. Look for suppliers that offer a risk-free guarantee, which might include easy returns or exchanges if the part doesn’t meet your expectations or requirements.
Cost. Compare prices from multiple sources but be cautious of prices that seem too low, as they could indicate counterfeit parts. Choosing an offer based on price alone means that the buyer does not need to buy the right part, but only needs to buy the lower price that gives the greatest profit. Be aware of any import/export regulations, including taxes, duties, and restrictions that could affect the transaction, especially for international purchases. Cost was put as the last position because it should be the last thing to be checked, rather than the first.
Adherence to the rules outlined above is essential when purchasing aircraft spares to ensure safety, reliability and efficiency. Prioritizing factors such as a comprehensive warranty, traceability and supplier confidence will help secure parts that meet stringent industry standards. In addition, ensuring that parts are in stock and available for same-day shipment can significantly reduce aircraft downtime, especially in critical situations.
By choosing suppliers that offer secure packaging and a no-risk guarantee, you can reduce risk and ensure that every transaction meets your operational and regulatory requirements. In the highly regulated and safety-conscious aerospace industry, these considerations are not just best practices - they are critical safeguards that protect both your investment and the lives that depend on the aircraft.
Do you have in your hands a Quotation received from Horix Aerospace?
Why should you buy from Horix rather than from another vendor or not buy at all?
After reading and understanding the 7 Things you should know before buying an Aircraft Part, it will be impossible to make the wrong choice, because we are confident that it is awareness that will finally drive the buyer to action.
About Horix Aerospace
Horix Aerospace is an horizontally integrated aerospace company, strongly focused in Spare Parts Management solutions for the Business Aircraft Market. Horix has developed both the Trust Consignment Program and the Trust Dismantling Program to offer clients a unique opportunity becoming the Swiss Trusted Solution for Aerospace Components Management. With over USD 30M in assets under management, Horix Aerospace has become a disruptive force in the Aerospace Industry with both its Trust Dismantling Program and unique Business Model.
Strongly capitalized and managed by a team of industry veterans, Horix Aerospace is proud to be a Swiss owned and operated company.
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