ITOCHU Corporation (ITOCHU) has made a strategic investment in Killick Aerospace (Killick) a global provider of aftermarket solutions for airlines, maintenance, repair, and overhaul organisations (MROs), lessors, and asset managers. Killick specialises in delivering commercial aircraft and engine solutions for Airbus and Boeing platforms. This investment signifies ITOCHU's entry into the aircraft aftermarket sector, complementing its existing aircraft leasing operations.
The aircraft aftermarket industry is set for substantial growth, driven by a strong recovery following the COVID-19 pandemic. In the commercial aircraft maintenance sector, the use of re-certified parts from approved repair facilities, known as Used Serviceable Material (USM), has been rising steadily. The demand for USM is forecast to grow to around $US11 billion by 2032, which is approximately 1.5 times the current market size. With air passenger numbers reaching record highs, the demand for Killick's USM solutions has never been more critical. Utilising USM not only helps airlines reduce costs but also shortens lead times for parts procurement and supports environmental sustainability.
Killick has been in the aircraft aftermarket sector for nearly two decades; headquartered in Ireland, Killick operates across key global markets, including the United States, the United Kingdom, Singapore, and Australia. In recent years, Killick has expanded its offerings beyond USM to include the distribution of Nitrogen Generation System (NGS) components and other essential equipment manufactured by Honeywell for Boeing aircraft.
With distribution centres in North America, Europe, and the Asia-Pacific region, Killick maintains a comprehensive inventory of readily available equipment, ensuring world-class service for its clients worldwide.
ITOCHU has a well-established presence in the commercial aerospace industry, primarily through its aircraft leasing and management services. By leveraging synergies between ITOCHU's expertise and Killick's aftermarket capabilities, the partnership aims to deliver high-quality, customer-focused solutions that cater to the evolving needs of the aviation industry.
As part of its management policy, “The Brand-New Deal: Profit Opportunities are Shifting Downstream,” ITOCHU is accelerating growth investments, starting downstream and expanding into new business areas. Through its collaboration with Killick, ITOCHU plans to broaden its involvement in the commercial aviation sector and contribute to the sustainable growth of the aviation industry.
