How much of this approach is driven by Nick Howley, or is it now more driven by Kevin and the team currently running the company?

(At TransDigm) Decisions are made in a decentralized fashion at the place closest to creating value, right next to the customer. Those things are important.

So, you're saying that even after five years of that 10-year period, that's when these things start to come in, other than the OEMs. If you have Boeing Global Care, then after 15 years, these things start to kick in, basically.

In most cases. There are certain systems and components where the transition can happen sooner, and others where it never happens. The point is, how do you choose the products you provide? If you're the OEM, you want to pick the product where the transition never happens. So, if you have a larger quantity of things where it doesn't matter, Boeing Care is gone, and everything else is too high a risk from the airline operator's or leasing company's perspective to even entertain a third party, you want more of those products than the ones deemed low risk.

So, I'm curious about the pricing at the onset of a program. What is the IRR like? You have to project it for almost 30 to 35 years of cash flow? That's 15 years of warranty, and then the price you're going to get afterward. What is the typical IRR that component makers aim to achieve?

They (parts manufacturers) aim for a 20% return, but do they achieve it all the time? Probably not. I would estimate their returns to be between 15% and 30% IRR, considering the capital tied up in designing and developing these products. If the returns were lower, it might not make sense to invest in this area. As capital investors, you would be better suited to assess that.