MRO & Manufacturing
B&H Worldwide Expands Global Logistics Partnership with Ontic
B&H Worldwide secures a global warehousing contract with Ontic to enhance aerospace logistics and AOG support across key international hubs.
B&H Worldwide and Ontic Forge Global Logistics Partnership
In the high-stakes world of aerospace, where a grounded aircraft can represent significant financial losses, the efficiency of the supply chain is paramount. A new agreement is set to reinforce this critical backbone of the industry. B&H Worldwide, a prominent aerospace logistics provider, has officially secured a global warehousing and logistics contract with Ontic, a major Original Equipment Manufacturer (OEM) in the aerospace sector. This development marks a significant expansion of a long-standing relationship, moving their collaboration from a regional focus to a global stage.
The partnership is designed to provide strategic support for Ontic’s continued international growth. For an OEM like Ontic, which supplies established aircraft parts to leading aerospace companies, having a robust and responsive logistics network is not just an operational advantage, it’s a core component of its customer commitment. This contract leverages B&H Worldwide’s specialized expertise and global infrastructure to ensure that Ontic’s parts are available where and when they are needed most, particularly in urgent Aircraft-on-Ground (AOG) situations. The official signing ceremony at MRO Europe underscores the strategic importance of this collaboration, signaling a new phase of enhanced service delivery for the global aviation market.
A Comprehensive Service Framework
Under the terms of the new contract, B&H Worldwide will manage a comprehensive suite of logistics services for Ontic. The scope involves holding and managing an inventory of over 3,000 distinct items. This is not merely about storage; it encompasses a detailed inventory management process that includes full packaging, consignment, and meticulous document checks upon both receipt and dispatch of parts. These procedures are vital for ensuring the integrity of sensitive aerospace components and maintaining strict regulatory compliance, which is non-negotiable in the aviation industry.
The agreement also covers specialized requirements, including the handling of dangerous goods, a complex and highly regulated area of logistics. B&H Worldwide will facilitate both routine and, critically, AOG shipping services. The ability to expedite parts during an AOG event is a key performance indicator in aerospace logistics, as it directly impacts an airline’s or MRO’s (Maintenance, Repair, and Overhaul) ability to return an aircraft to service. This dual capability ensures that Ontic can support its customers’ needs across the full spectrum of operational tempos, from planned maintenance to unforeseen emergencies.
“This new contract reflects the confidence the business places in our ability to deliver high-quality, secure, and efficient logistics solutions worldwide. Our dedicated teams and proven systems will ensure Ontic’s customers continue to benefit from reliable support, whether for routine shipments or urgent AOG requirements.”
– Gary Wilson, Group Managing Director of B&H Worldwide.
To provide transparency and control over this complex global operation, Ontic will have full access to B&H Worldwide’s proprietary warehouse management system, FirstTRAC. This technology platform allows for real-time tracking and monitoring of global inventory, giving Ontic clear visibility into its supply chain. Such technological integration is crucial for modern logistics, enabling proactive management, accurate forecasting, and swift decision-making. It transforms the supply chain from a simple sequence of movements into an interconnected, data-driven ecosystem.
Strategic Global Positioning and Future Implications
The partnership’s global nature is anchored by strategically chosen warehouse locations in London, Miami, and Singapore. These hubs are not arbitrary; they represent key logistical crossroads in the global aviation network, providing optimal access to major markets in Europe, the Americas, and Asia-Pacific. By positioning critical inventory in these locations, Ontic and B&H can significantly reduce shipping times and enhance responsiveness to customer requests from anywhere in the world. This geographic distribution is fundamental to delivering on the promise of minimizing downtime and maximizing operational efficiency for airlines and MROs.
This agreement is an evolution of a partnership that dates back several years. Previously, the collaboration was more focused, with B&H managing Ontic’s AOG support assets from a facility at London’s Heathrow Airport. The expansion to a global framework demonstrates the success of the initial model and the mutual trust built between the two companies. It represents a strategic alignment where B&H’s specialized logistics infrastructure directly supports Ontic’s global growth ambitions and its commitment to superior aftermarket support.
“As we continue to expand our global footprint, having B&H’s expertise and infrastructure supporting our AOG and Exchange inventory means we can deliver even greater reliability, responsiveness, and speed to our customers. With critical inventory now strategically located across London, Miami, and Singapore, we can ensure our customers receive the parts and support they need, when and where they need them.”
– Jack Karapetyan, Vice President & General Manager, Global MRO Operations of Ontic.
The collaboration is poised to set a new benchmark for service excellence in AOG logistics and exchange management. In an industry where every minute of downtime counts, the ability to deliver the right part quickly is a powerful competitive differentiator. This partnership is structured to do exactly that, combining physical infrastructure, technological platforms, and deep industry expertise to create a highly resilient and efficient supply chain. It reflects a broader trend in the aerospace industry, where OEMs and logistics specialists are forming deeper, more integrated partnerships to navigate the complexities of the global aftermarket.
Conclusion: A New Standard in Aerospace Logistics
The expanded global contract between B&H Worldwide and Ontic is more than a simple business agreement; it is a strategic move to enhance the resilience and responsiveness of the aerospace aftermarket. By leveraging B&H’s global network, specialized services, and advanced technology, Ontic is better positioned to support its customers worldwide, reinforcing its reputation as a trusted partner. The focus on key hubs in London, Miami, and Singapore ensures that critical parts are closer to the point of need, directly addressing the industry’s core challenge of minimizing aircraft downtime.
Ultimately, this partnership is designed to deliver tangible benefits to airlines and MROs through increased reliability and speed. It serves as a clear example of how collaboration between OEMs and logistics experts can create a more efficient and robust global supply chain. As the aerospace industry continues to evolve, such strategic alliances will likely become even more critical in ensuring that the global fleet remains operational, efficient, and safe.
FAQ
Question: What is the primary goal of the new contract between B&H Worldwide and Ontic?
Answer: The primary goal is to provide global warehousing and logistics support for Ontic’s continued international growth, enhancing its aftermarket support and responsiveness to customers, especially for Aircraft-on-Ground (AOG) situations.
Question: Which key locations will be part of this global warehousing agreement?
Answer: The agreement will utilize strategically located warehouses in London, Miami, and Singapore to serve customers across Europe, the Americas, and the Asia-Pacific region.
Question: What technology will Ontic use to manage its global inventory?
Answer: Ontic will use B&H Worldwide’s proprietary warehouse management system, FirstTRAC, to track and monitor its global inventory in real-time.
Question: What specific services will B&H Worldwide provide to Ontic?
Answer: B&H Worldwide will provide premium inventory management for over 3,000 items, full packaging, consignment and document checks, dangerous goods handling, and both routine and AOG shipping services.
Sources:
Photo Credit: B&H Worldwide
MRO & Manufacturing
SeAH Aerospace Signs Long-Term Aluminum Supply Deal With Airbus
SeAH A&D becomes first South Korean materials maker to supply Airbus, with deliveries of aluminum alloys planned for 2028.
SeAH Aerospace & Defense (SeAH A&D) has secured a long-term agreement to supply high-strength aluminum alloy materials directly to Airbus, becoming the first South Korean materials manufacturer to achieve this status. The milestone contracts, formalized at the Farnborough International Airshow and announced on July 26, 2026, positions the company to provide critical materials for Airbus aircraft fuselages and wing structures.
According to a press release issued by SeAH A&D, the agreement breaks traditional industry conventions by being signed prior to the completion of product certification. This early commitment reflects a strategic move by Airbus to secure a stable procurement network amid ongoing global aerospace supply chain bottlenecks and high demand for commercial aircraft.
Production timeline and facility expansion
The South Korean manufacturer will begin the quality certification process for its high-strength aluminum alloys in the second half of 2026. Following the anticipated completion of this certification, SeAH A&D plans to launch full-scale mass production and commence supply deliveries to Airbus in 2028.
To support this new long-term agreement and growing global demand, SeAH A&D is expanding its manufacturing footprint. The company is scheduled to open a new production facility in Changnyeong, South Korea, in 2027.
Expanding global aerospace footprint
The global aviation aluminum alloy market has historically been dominated by European and United States companies. SeAH A&D has been rapidly increasing its market share in this sector, securing multiple international contracts over the past year to supply materials that meet strict aerospace specifications.
Prior to the Airbus agreement, SeAH A&D signed a long-term supply agreement with Boeing in December 2025. The company has also established supply relationships with Israel Aerospace Industries (IAI) and Embraer, diversifying its portfolio across major aerospace original equipment manufacturers (OEMs).
AirPro News analysis
We view Airbus’s decision to sign a long-term agreement before product certification is complete as a clear indicator of the severe material constraints currently facing aerospace OEMs. By locking in emerging suppliers like SeAH A&D early, Airbus is actively mitigating future production risks. This contract also highlights a broader industry trend of diversifying the aerospace supply chain beyond traditional Western material providers to meet the sustained high demand for new commercial aircraft.
Photo Credit: SeAH Aerospace & Defense
MRO & Manufacturing
Embraer and SkyWest Extend Heavy Maintenance Deal for 271 E175s
Embraer and SkyWest Airlines extend their heavy maintenance agreement for 271 E175 aircraft across three U.S. facilities.
Embraer and SkyWest Airlines have finalized a long-term extension of their heavy maintenance agreement covering 271 Embraer E175 aircraft, securing dedicated service capacity across three United States facilities. The deal, announced on July 21, 2026, at the Farnborough International Airshow, guarantees maintenance slots for the world’s largest E175 operator as the manufacturers rapidly expands its domestic support footprint.
In a press release issued during the airshow, Embraer confirmed the extended contract will utilize its Services & Support locations in Nashville, Tennessee; Macon, Georgia; and Fort Worth, Texas. The agreement ensures long-term fleet reliability for SkyWest Airlines, which operates a total fleet of approximately 500 aircraft and carried 46 million passengers in 2025, according to reporting by Airways Magazine.
Expanding domestic maintenance capacity
The extension with SkyWest aligns with Embraer’s broader strategy to increase its Maintenance, Repair, and Overhaul (MRO) presence within the United States. A central component of this strategy is the manufacturer’s ongoing infrastructure investment in Texas.
Embraer is currently developing a new commercial aviation MRO facility at Perot Field Alliance Airport in Fort Worth. Airways Magazine reports the project represents an investment of approximately $70 million. Once operational in 2027, the new site is expected to increase Embraer’s domestic service capacity for E-Jets customers by 50 percent. The manufacturer previously initiated services at its existing Alliance Airport operations in June 2025.
Securing fleet reliability
For SkyWest Airlines, securing guaranteed heavy maintenance slots is a critical operational requirement given the scale of its E175 operations. The regional carrier relies heavily on the 76-seat aircraft to execute capacity purchase agreements with major United States network airlines.
“This heavy maintenance agreement is an important part of keeping our E175 fleet strong and reliable,” said Joe Sigg, Vice President of Maintenance at SkyWest Airlines. “As the world’s largest owner-operator of the E175, this agreement will help ensure we’re able to continue providing the exceptional, reliable product that people expect from SkyWest.”
Embraer views the contract as validation of its Original Equipment Manufacturer (OEM) support model. Carlos Naufel, President and CEO of Embraer Services & Support, stated the agreement reinforces the company’s commitment to providing OEM-led MRO solutions that enhance operational efficiency while supporting customer growth through an expanding United States maintenance network.
AirPro News analysis
We view this contract extension as a mutually beneficial lock-in for both parties in a constrained global maintenance market. MRO capacity has become a critical bottleneck across the commercial aviation sector, driven by supply chain delays, labor shortages, and older aircraft remaining in service longer than anticipated. By securing long-term heavy maintenance slots for 271 airframes, SkyWest mitigates a significant operational risk.
For Embraer, anchoring its expanding United States MRO network with the world’s largest E175 operator provides guaranteed baseline revenue for its new facilities. The $70 million investment in Fort Worth requires consistent volume to generate returns. A long-term commitment covering more than half of SkyWest’s total fleet ensures those hangars will remain active immediately upon opening in 2027.
Sources: Embraer
Photo Credit: Embraer
MRO & Manufacturing
Global Engine Stand Utilization Hits Record Levels in 2026
MRO engine stand utilization reached record highs in H1 2026, with PW1100G at 95% and CFM56-5A/B at 92%, per EngineStands data.
Global MRO facilities are facing severe infrastructure strain as airlines simultaneously manage early-life maintenance for new-generation engines and extend the life of mature narrowbody fleets.
According to operational data released on July 17, 2026, by EngineStands, utilization rates for engine stands supporting both legacy and new-generation powerplants reached record levels in the first half of 2026. The data highlights the physical infrastructure demands resulting from ongoing aerospace supply-chain constraints and delayed new aircraft deliveries.
New-generation engine demands drive utilization
The Pratt & Whitney PW1100G recorded a 95% stand utilization rate in the first half of 2026, the highest across the EngineStands portfolio. Despite the high demand, the average project duration for PW1100G stands dropped to 123 days, down from 245 days in 2024. This efficiency improvement correlates with an approximate 15% decline in PW1100G aircraft groundings during the same period. Groundings for the engine type previously peaked at 648 aircraft, or 28% of the global fleet, in March 2025.
Demand for CFM International LEAP-1A stands also remained high, reaching 71% utilization, with average project durations shortening by approximately 8%. The International Air Transport Association (IATA) highlighted the long-term trajectory of these requirements in a June 24, 2026, study. IATA forecasts that LEAP engine shop visits will increase from 600 to 800 in 2025 to 5,000 annually by 2040.
“Resolving today’s disruption is the immediate priority. But long-term resilience will depend on a more transparent, competitive and collaborative aftermarket,” said IATA Director General Willie Walsh.
Legacy fleets compound maintenance constraints
Because new aircraft deliveries remain insufficient to meet market demand, operators are heavily utilizing mature aircraft. The Airbus A320ceo and Boeing 737 Next Generation (737NG) currently account for approximately 60% of the global in-service fleet. This reliance is driving sustained demand for legacy engine support infrastructure.
Stand utilization for the CFM International CFM56-5A/B rose to 92% in the first half of 2026, an increase from 77% in 2025. The CFM56-7B saw 77% utilization, with average project durations shortening by approximately 17%. The IAE V2500 recorded a 76% utilization rate, though project durations for this engine type lengthened by roughly 9%.
EngineStands data illustrates the rapid accumulation of maintenance requirements for these active fleets. A Boeing 737NG operating five to six cycles per day can consume 450 cycles in a single summer season. Similarly, an Airbus A320 flying 8 to 10 hours daily can consume a 750 flight-hour light check interval in just 75 to 94 days.
Financial results reflect aftermarket pressure
The intense demand for engine maintenance is clearly visible in manufacturer financial results. On July 16, 2026, GE Aerospace reported its second-quarter results, showing a 27% year-over-year increase in Commercial Engines & Services segment revenue, which reached $9.73 billion. The company also reported a 24% increase in LEAP engine deliveries during the quarter.
“GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth,” said GE Aerospace CEO H. Lawrence Culp Jr.
AirPro News analysis
We observe that the global MRO sector is caught in a structural squeeze. The simultaneous need to support aging CFM56 and V2500 engines alongside the intensive early-life maintenance requirements of the PW1100G and LEAP platforms is unprecedented. The shortening of stand rental durations for the PW1100G suggests that Pratt & Whitney and its MRO network are becoming more efficient at processing shop visits, which aligns with the reported 15% reduction in grounded aircraft. However, the high utilization rates across all engine types indicate that physical infrastructure and supply chain capacity will remain a critical bottleneck for the foreseeable future.
Sources: EngineStands
Photo Credit: EngineStands
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