Boeing, TransDigm, & a History of Aftermarket Distribution
Former Managing Director at Boeing, Supplier Services
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Former Managing Director at Boeing, Supplier Services
Interview Transcript
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Why was that?
Because TransDigm was leveraging Boeing by saying hey, you're jerking us around over here, you didn't award us something or you're bad-mouthing us. Whatever you're doing, we're not going to renew the contract with Aviall and take away $50 million worth of revenue just like that. No discussion, no nothing, and Aviall was powerless to do anything about it.
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What you're saying is interesting because you replaced this TransDigm battery. It worked; you said you had 20 other projects, and if you had a bigger budget, you could keep doing more. That's a narrative violation because people think these TransDigm products are very sticky; you can't rip them out. But you're suggesting you can rip them out.
Yes, that was part of this initial conversation. Where the idea came from of this specific battery was Boeing had said we need to take TransDigm out of the picture. So, being an engineering company, their idea was let's reverse engineer TransDigm parts. They had this project called Insourcing, which came to be named something else later. Let's identify these egregiously priced TransDigm parts, and we will make a Boeing version that we can offer the customer at a lower price.
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