Published May 26, 2024
Loar Group: SCHROTH vs AmSafe Seat Belts
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And when you say you weren't selling directly to the airlines, why was that?
The contracts were written specifically for certain seat manufacturers. Not every seat manufacturer was included. We did have airline customers to whom we sold directly, primarily replacement belts, which was also a 30% to 40% margin business. However, it depended on the seat manufacturer whether we were selling to the airlines or directly to Collins. Sometimes, the airlines' contracts were written directly and only with Collins. We would sell the replacement belts to Collins, who then marked them up and sold them to the airline customer. The contracts varied widely, not very standardized, and depended on the size of the airline and the seat manufacturer. It was quite a mix of different rules.
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