Page 14 - AAA NOVEMBER - DECEMBER 2013 Online Magazine

FEATURE COMPONENT REFURBISH
Rear Admiral Chris
Parry was commissioned
by Reuters to author
a special report on
counterfeiting
a comprehensive strategy is needed that engages authorities,
aviation industries and governments in the provision of intelligence
and a system to track counterfeiters and their products
– Rear Admiral Chris Parry
14 ASIAN AIRLINES & AIRPORTS NOVEMBER / DECEMBER 2013
in the US alone, killing 17 and injuring 39. to sell is the internet, and the use of net-
Although more recent figures are hard to only suppliers. “Traders and brokers are
come by, it’s estimated that 2% of the 26 able to buy cheap components on the
million aircraft parts installed every year Internet and sell them with a markup
are counterfeit. That’s over 500,000 fake to commercial and military operators,”
and potentially suspect or lethal parts writes Parry. “These types of supply
flying our skies. routes have been particularly active in
Finnegan’s lawyers say that because the U.S., where oversight and certification
the global market in aviation parts and have been afforded a lower priority than
electronics is largely unregulated and, the need to source scarce components
in some cases, highly difficult to track to deal with immediate operational and
at point of sale. Rear Admiral Chris commercial pressures.” It seems the core
Parry, commissioned by Reuters to problem is Cost v. Safety – as Guberman
author a special report on the subject, accurately points out in his report on the
agrees. “Counterfeiters, having provided possibility of poor quality and suspect
false airworthiness certificates and parts in aircraft as a result of current
packing slips, will usually offer product ISO registration and auditing practices
copies for sale at a discount,” he says. of these closely affiliated organizations.
“Illegal manufacturers sell parts to Indeed, the diversity of global supply
other manufacturers or brokers, who, sources and logistics chains currently
in turn, sell and ship the counterfeit being used by major manufacturers –
aircraft parts to both military and Airbus uses some 1,500 suppliers in 30
commercial maintenance programs, countries – makes identifying every single
creating additional false documents to part (and subsequent spare part) a virtual
misrepresent the origin and obscure the impossibility. Like most dodgy business, it
authenticity of the counterfeit parts,” he seems the bad boys have taken a serious
explains. interest. Some reports indicate that
To make things even more confusing, “widespread criminal involvement, both
fake-makers often charge no-fake (i.e. at national and international levels” is
just below normal) prices to reduce the starting to creep into what was originally
risk of suspicion and detection and to a back-yard or back-door industry.
maximise profits along the way; too-low As yet, the people who are being
prices would raise suspicions. According required to fit parts that may or may
to Parry, brokers in the U.S. are the key not be original, suitable, even safe, are
to the trade. They buy parts from black powerless to do anything more than
market or unverifiable sources (he cites inform the authorities (see sidebox).
Chinese and mostly Asian sources) – and “Where … does the FAA stand on these
then resell them to government agencies, issues?” asks Don LaBelle, President of
commercial airlines or sometimes the American Machine Shops Network
directly to procurement chains for use as (AMSN) in one interview. “Sadly, this
original equipment. appears to be a classic case of ‘profit over
The other recent development that has safety,” he asserts. “If confirmed by the
made counterfeiting aircraft parts easier FAA, any such manufacturers knowingly
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