TEARDOWN & CONSIGNMENT The Value Proposition
The Whole Truth and nothing but…
We have covered a lot in the last seven weeks and fair play if you have managed to get through all the articles. This is the second batch of articles that has been produced and you will find the first batch on www.sellue.com, that said if this batch has not persuaded you of the merits of giving it a go, then adding the first batch to your reading list is unlikely to make a difference.
So, let’s have a lick of the last few choc ices. What of our experiences can we add to get you over the line? What other added value has SellUe and OPTIC achieved that will support your decision-making process? What additional features are in development that may the difference for you?
Part 1; Experiences
SellUe started with the first A380 airframes to be parted out, 3 pre covid, 2 in covid, 2 post covid. No better airframe to earn your stripes on. The ability to adapt to polar markets as regards demand, expectations, and performance required significant initiative, energy and adaptability. When you consider that outcomes were 6x, 1x, 2x respectively, well, you get the idea…
SellUe have also been involved in the first 787s to be parted out. Two through asset auditing and one through program management. Excellent outcomes on all three showed why the teardown value was viewed as a better financial outcome then selling the airframe whole. That will change but there are a few more airframes to be parted out before that becomes a reality.
Our platform capability includes the A320 Classic family, A330, ATR72 range, E190 range, and recently A320 NEOs. We have not processed any of the 737 Family. We rarely talk about capability as the program management and platform is agnostic to platform type. Set up generally includes the contracting of a platform expert for three months to ensure all bases are covered.
Part 2; Added Value
We have spoken about the unplanned value add as regards the significant reduction of risk within the choice of teardown and consignment. Where this has really shown itself is within the high value projects, those projects where we are talking 10s of $Ms, rather than the single digit $Ms on single older airframes. Higher values increase risk and the ability to accurately track dollar in-dollar out, forecast project end returns, and support the optimisation of returns, de-risks this for those to whom it matters most – the money men. One such high value project – over two years into consignment, is currently running at 113% of model with a project end forecast of 110% over the original model.
Para 3; Future Features
SellUe is in the middle to identifying, adapting, and setting up AI reporting. Two reports have already been adopted by clients.
- Monthly Prospecting Report, identifying the end users against recent quote activity.
- Monthly Opportunity/Risk Report that identifies exposures/campaigns around repair investment.
Both are available outside of OPTIC currently, but not for long.
The second major development is that of measuring the green footprint of parted-out assets. How were the parts disposed of – reused, repurposed, recycled and the environmental impact of disposal. A little bit further down the line, expected in 2027.
Over to You
What options exist to take your first step with SellUe and OPTIC?
Commercial Asset Audit: In and Out, get an understanding on how a project is performing and where it is likely to end up.
Physical Asset Audit: In and Out, retired Air Corp inspectors are available to ensure full reconciliation to the asset pull list.
The Beginning, Middle or End: A bit longer In and a better Out. We can set it up, or report on it, or close it for you.
Full Program Management: All In and an optimal Out. From part out consideration to close out, we manage it all for you.
More to Come
The more to come is now down to you. The above represents the commercial steps in, before those comes a demo of OPTIC. A demo that works to give you confidence that you have a wider range of options for your asset, gets you comfortable around the residual value achievable post lease, while at the same time making your life easier should you chose to go that way. What more could you ask for?
The Bottom Line
Intent, Ambition, Performance, Technology, all working to squeeze enough extra value out of a retiring asset that going the SellUe/OPTIC route is the obvious call — more money out of your asset. Be the one who gets it out!
You decide if 2x is enough.
SellUe is a Teardown & Consignment (T&C) Project Management company with a dedicated T&C digital platform called OPTIC. For a demo of this live asset, visit www.sellue.com, email [email protected] or call +353 831 456617.