Max Miller

Max Miller with UBS asked about the implications for HEICO if aftermarket tightness eases, new aircraft come online, older platforms retire, and fleet age normalizes, specifically how this might change the math for PMA utilization and HEICO's thriving segments.

Answer

Co-Chairman and Co-Chief Executive Officer Eric Mendelson stated HEICO doesn't anticipate a negative impact, as their business is driven by fleet hours. He highlighted the aging 20,000-aircraft fleet, aggressive OEM price escalation, and significantly higher spare part prices for newer aircraft, all of which increase HEICO's value proposition and opportunities.

Max Miller asked about the implications for HEICO's business if the current aftermarket tightness eases, new aircraft come online, older platforms are retired, and the overall fleet age normalizes. He questioned how such a scenario might change the math for PMA utilization and HEICO's thriving areas.

Answer

Eric Mendelson, Co-Chairman and Co-CEO, stated that HEICO does not anticipate a significant negative impact from such a scenario. He emphasized that HEICO's business is primarily driven by growth in fleet hours/available seat miles and that the aging 20,000-aircraft fleet continues to age. He highlighted that OEMs aggressively escalate prices for spares on newer aircraft, which are significantly more expensive than those on older platforms. He believes HEICO's value proposition increases substantially in this environment, and the company is well-positioned to take advantage of opportunities in these markets.