MRO & Manufacturing
Duncan Aviation Updates Component Repair Pricing for Cost Certainty
Duncan Aviation introduces tiered pricing for component repairs and exchanges to enhance cost predictability and address safety risks from low-cost parts.
This article is based on an official press release from Duncan Aviation.
Duncan Aviation Restructures Component Pricing to Combat Supply Chain Volatility and Safety Risks
On January 20, 2026, Duncan Aviation announced a comprehensive restructuring of its pricing models for component repairs and exchanges. The Lincoln, Nebraska-based MRO (Maintenance, Repair, and Overhaul) provider stated that the changes are designed to offer operators greater financial predictability while addressing safety concerns regarding the influx of low-cost “as-removed” parts in the aviation aftermarket.
The new structure introduces tiered pricing for component repairs and two distinct options for core exchanges. According to the company, these changes allow customers to choose between lower upfront costs with traditional risk exposure or higher upfront costs that guarantee total price certainty. This strategic shift comes as the aviation industry continues to grapple with supply-chain instability and rising material costs.
A New Tiered Approach to Repairs and Exchanges
Duncan Aviation’s Parts & Rotables Sales and Component Services division has moved away from a one-size-fits-all billing model. Instead, the company has implemented a flexible structure that categorizes services based on the severity of the repair and the customer’s risk tolerance.
Component Repair Tiers
For operators sending their own units in for repair, Duncan Aviation now offers three specific levels of coverage:
- Essential Coverage (Minor Maintenance Repair): This tier targets routine repairs where major internal damage is not anticipated. It covers the most common unit failures, offering a cost-effective solution for standard maintenance events.
- Expanded Coverage (Major Maintenance Repair): Designed for units requiring more extensive work, this tier covers a broader range of complex failures that exceed standard fixes.
- Universal Flat Rate: This option provides a single, guaranteed price that covers all work required to return the unit to service. It eliminates variable costs, ensuring the operator knows the final bill before the unit is even shipped.
Core Exchange Options
For customers requiring an immediate replacement via a core exchange, the company has introduced two billing structures regarding “bill-backs”, the additional charges assessed if a returned core requires more repair than the standard allowance covers:
- Standard Exchange Rate: This option offers a lower upfront price but carries the risk of supplemental charges. If the customer’s returned core requires extensive repairs or expensive sub-components, they may be billed the difference later.
- Flat Rate Exchange: This option involves a slightly higher upfront fee but includes all necessary repairs to return the core to service. According to Duncan Aviation, this rate guarantees no follow-up charges provided the core has no “physical damage,” such as corrosion, water damage, or evidence of mishandling.
Addressing the “As-Removed” Market Risk
A primary driver behind this restructuring is the growing prevalence of “as-removed” parts, components harvested from retired aircraft and sold with minimal inspection. Duncan Aviation officials highlighted the safety risks associated with these parts, which often carry FAA Form 8130-3 airworthiness tags based solely on external visual checks.
Chris Gress, Business Development Manager for Duncan Aviation, emphasized that visual inspections are insufficient for ensuring the airworthiness of complex avionics and rotables.
“The aircraft component market is changing… We took a hard look at industry trends, specifically the influx of as-removed parts, and made changes to remain competitive while maintaining our standard of quality.”
, Chris Gress, Business Development Manager, Duncan Aviation
Gress further noted that critical internal damage, such as blown fuses, degraded wiring, or corrosion, cannot be detected without removing the unit’s cover and performing a functional test. By offering tiered pricing, Duncan Aviation aims to provide a competitive alternative to the gray market while ensuring parts undergo rigorous internal inspection and testing.
AirPro News Analysis
The introduction of the “Universal Flat Rate” and “Flat Rate Exchange” models represents a significant shift toward insurance-style pricing in the MRO sector. In a traditional Time and Material (T&M) model, the operator bears the financial risk of inflation and supply chain surprises; if a sub-component doubles in price, the final invoice reflects that increase.
By opting for a Flat Rate, operators are effectively paying a premium to transfer that risk to Duncan Aviation. For Directors of Maintenance managing strict annual budgets, this predictability is likely to be a strong selling point, eliminating the “sticker shock” that often accompanies complex avionics repairs. This move aligns Duncan Aviation with broader industrial trends where service providers bundle risk management into the sticker price of the product.
Company Background and Context
Duncan Aviation is the world’s largest family-owned business aircraft MRO provider. Headquartered in Lincoln, Nebraska, the company operates major facilities in Battle Creek, Michigan, and Provo, Utah, along with over 20 satellite avionics shops nationwide. The company has recently expanded its footprint, including a new engine overhaul facility announced in late 2025 and major hangar expansions completed over the last two years.
Frequently Asked Questions
- What is the main benefit of the Universal Flat Rate?
- The primary benefit is total cost certainty. Operators know the exact cost of the repair before shipping the unit, protecting them from unexpected charges due to hidden damage or rising parts costs.
- Does the Flat Rate Exchange cover all damage?
- It covers all repairs necessary to return the unit to service, with the exception of “physical damage.” Duncan Aviation defines this as damage caused by external factors, such as water intrusion, corrosion, or dropping the unit.
- Why is Duncan Aviation warning against “as-removed” parts?
- The company warns that parts certified via visual inspection only (often found in the “as-removed” market) may harbor internal failures like bad wiring or corrosion, which could damage other aircraft systems upon installation.
Sources
Photo Credit: Duncan Aviation
MRO & Manufacturing
Baxter Aerospace Invests $19.55M in Utah Manufacturing Facility
Baxter Aerospace expands into Washington County, Utah with a $19.55M facility to scale UAS and satellite comms production.
Baxter Aerospace will invest $19.55 million to lease and equip a new manufacturing facility in Washington County, Utah, transitioning its unmanned aircraft and communications systems from prototype development into full-scale production.
The expansion, announced in an October 8, 2026, press release by the Utah Governor’s Office of Economic Development (GOED), is projected to create 90 high-paying jobs over the next five years while strengthening the state’s aerospace and defense industrial base.
Transitioning to full-scale production
The new facility in Washington City will feature high-capacity infrastructure, specialized testing spaces, and security systems. This site is designed to support mission-critical work across aerospace, defense, satellite communications, autonomous aircraft, and public safety.
Baxter Aerospace CEO Jeff Baxter stated that expanding in southern Utah allows the company to increase manufacturing capacity and support growing customer needs. He noted the company is prepared to help shape the region’s aerospace future.
The project is backed by a Rural Economic Development Tax Increment Financing (REDTIF) post-performance tax credit approved by the GOED. Under the agreement, Baxter Aerospace can earn a rebate of up to 30% on new state revenues generated over the five-year term, capped at $456,939.
State officials project the expansion will generate $20,758,160 in new state wages and $1,523,131 in new state tax revenue during that period. GOED Commissioner Jefferson Moss noted that the investment signals Utah’s economic future is fueled by frontier innovation. Washington County Commissioner Adam Snow added that the expansion connects local talent with emerging aerospace opportunities.
Scaling the BA-1 Dragonfly and defense portfolio
The manufacturing expansion follows a period of steady growth for the St. George-based defense and aerospace innovator. Brothers Jeff and Michael Baxter founded the company in 2015 following a severe Oregon wildfire, focusing their initial efforts on real-time sensing, resilient communications, and autonomous systems for emergency response and defense applications.
The company’s flagship aerospace product is the BA-1 Dragonfly. The Dragonfly is a Group 3 vertical takeoff and landing (eVTOL) unmanned aircraft system designed for intelligence, surveillance, and reconnaissance (ISR) missions, featuring over 12 hours of endurance.
Alongside the BA-1 Dragonfly, Baxter Aerospace produces deployable broadband satellite communications kits that utilize low Earth orbit (LEO) networks. The company also manufactures precision components for the fusion and nuclear energy sectors.
To support the scaling of these product lines, Baxter Aerospace secured a $6 million Series A funding round in July 2025. The capital was raised from the Department of Defense (DoD) Accelerator fund, managed by Accuidity Capital Management, specifically to accelerate production of the Dragonfly system and the deployable communications kits. The new Washington County facility represents the physical infrastructure required to execute that production scale-up between late 2026 and 2031.
Photo Credit: Utah Governor’s Office of Economic Development
MRO & Manufacturing
IAI 777-300ERSF P2F Conversions Launch in North America
The first Boeing 777-300ER for P2F conversion in North America arrives at Ascent Aviation Services in Marana, Arizona.
The first Boeing 777-300ER slated for passenger-to-freighter (P2F) conversion in North America arrived at Ascent Aviation Services in Marana, Arizona, on October 22, 2026. The induction marks the regional launch of the Israel Aerospace Industries (IAI) modification program for the widebody twinjet.
The arrival of the World Star Aviation aircraft initiates operations at a newly expanded site designed to increase global capacity for the Boeing 777-300ERSF program, according to a joint press release issued by the companies.
Expanding global conversion capacity
Ascent Aviation Services, an independent aircraft aftermarket service provider and Federal Aviation Administration (FAA) Class IV Part 145 certified repair station, will operate two parallel conversion lines at its Pinal Air Park campus. To accommodate the Boeing 777-300ERSF program, the company invested $70 million to construct two 90,000-square-foot widebody hangars. Ascent broke ground on the facilities on March 29, 2024, effectively tripling the site’s hangar capacity.
“The launch of Boeing 777-300ERSF conversions in North America marks an important milestone for IAI’s global conversion program,” Yaacov Berkovitz, executive vice president and general manager of IAI Aviation Group, stated in the release. “Together with Ascent Aviation Services, we are expanding production capacity and bringing our conversion capabilities closer to customers in the region.”
Ascent Aviation Services chief executive officer David Querio noted that the induction represents the beginning of a long-term partnership with IAI, with multiple Boeing 777-300ERSF conversions planned for the Marana site.
“Our vision is to shape the future of aviation by turning engineering innovation into lasting value for our customers,” IAI president and chief executive officer Guy Bar Lev added. “Passenger-to-freighter conversions are a key part of that vision, extending the productive life of aircraft and helping airlines adapt to changing market needs.”
World Star Aviation’s fleet strategy
The inaugural aircraft belongs to World Star Aviation, a full-service aircraft and engine lessor headquartered in London. The company specializes in mid-to-late life assets and manages a portfolio of approximately 150 aircraft and engines. This includes 60 narrowbody and widebody freighters currently on lease to cargo operators globally.
World Star Aviation partner Yoyo Allalouf cited the strength of the IAI program during a critical period for widebody passenger-to-freighter production as the primary driver for their selection.
“IAI’s dominance in the widebody P2F space, demonstrated by its Boeing 747 and 767 programs, together with our long-standing relationship, underpinned our decision to choose IAI for the 777-300ERSF,” added Garreth Slevin, partner at World Star Aviation.
The rise of the “Big Twin” freighter
The Boeing 777-300ERSF program, marketed as “The Big Twin,” launched on October 22, 2019, as a joint venture between IAI and GECAS, which was subsequently acquired by AerCap. It remains the only certified P2F conversion program for the Boeing 777-300ER.
The converted freighter offers 25 percent more cargo volume than a production Boeing 777-200LRF and 15 percent more volume than a Boeing 747-400BCF. This capacity positions the aircraft as a direct replacement for aging Boeing 747-400 and McDonnell Douglas MD-11 freighter fleets.
IAI brings over 50 years of experience to the program, having delivered more than 350 converted cargo aircraft across Boeing 747, 767, 737, and Airbus A330 platforms. The company currently holds a dominant market share in medium-size freighter conversions, particularly with the Boeing 767.
The 777-300ERSF recently transitioned from certification into commercial service. In August 2026, Challenge Group took delivery of its second 777-300ERSF, which marked the fifth redelivery of the type across the industry for the year.
AirPro News analysis
We view the activation of the Marana conversion lines as a critical step in maturing the Boeing 777-300ERSF program. By establishing a North American footprint, IAI mitigates geographic bottlenecks and provides operators with a domestic option for heavy modifications. The $70 million infrastructure investment by Ascent Aviation Services indicates strong long-term confidence in the widebody conversion market, even as the air cargo sector normalizes following pandemic-era peaks. As legacy quad-engine and tri-engine freighters approach mandatory retirement or become economically unviable, the availability of parallel conversion lines in the United States ensures IAI can capture a significant share of the impending widebody replacement cycle.
Photo Credit: IAI
MRO & Manufacturing
Cirrus Aircraft Breaks Ground on $8M Engine Run-Up Center
Cirrus Aircraft begins construction on a 15,000-sq-ft Engine Run-Up Center in Duluth, MN, set to open summer 2027.
Cirrus Aircraft has commenced construction on an $8 million, 15,000-square-foot Engine Run-Up Center in Duluth, Minnesota, moving critical engine testing and fuel calibration processes into a year-round, climate-controlled environment.
The new facility, detailed in a company press release on October 23, 2026, is designed to support the certification process for the SR Series, Vision Jet, and TRAC10 aircraft while reducing noise at the surrounding airport.
Centralizing certification operations
The Engine Run-Up Center will consolidate several final-phase manufacturing steps into a single enclosed building. The facility will house two calibration stalls dedicated to engine setup and testing, utilizing an 8-foot exhaust collector to ventilate the spaces. A separate climate-controlled control room will allow technicians to conduct data analysis during the testing phase.
In addition to the testing stalls, the building will include two stalls specifically engineered for fueling and defueling aircraft. These areas incorporate specialized fire protection systems and are designed to meet requirements for handling flammable fluids.
Cirrus Chief Executive Officer Zean Nielsen stated that engine run-ups and fuel system calibration are essential processes across aircraft manufacturing. He noted that the modern facility will allow the company to streamline these critical operations, improve efficiency, and provide team members with a dedicated environment to perform the work.
Expanding the Duluth manufacturing footprint
The new testing center adds to an existing corporate footprint that exceeds 1.3 million square feet. The majority of this infrastructure is located in Duluth, which serves as the primary production hub for the manufacturer.
Founded in 1984 and now publicly traded on the Hong Kong Stock Exchange, Cirrus has manufactured more than 12,000 SR Series piston aircraft and Vision Jets to date. The groundbreaking follows closely on a major program milestone for the company. On October 21, 2026, Cirrus celebrated the 10-year anniversary of Federal Aviation Administration (FAA) type certification for the Vision Jet, the first single-engine personal jet to reach the market.
Patrick Waddick, President of Innovation & Operations at Cirrus, highlighted the scale of the company’s historical output in Duluth. He noted that the new facility expands a footprint where the company has produced its entire fleet of over 12,000 aircraft, adding that the manufacturer has spent decades challenging conventions through innovations that transform personal aviation.
Project timeline and operational impact
Construction on the Engine Run-Up Center is underway, with the facility expected to open and become fully operational by the summer of 2027. By moving engine testing indoors, the company anticipates a reduction in noise levels for the surrounding airport environment, a common challenge for manufacturers conducting high-power engine runs on open ramps.
The $8 million investment reflects broader efforts by the airframer to scale production capabilities in response to market requirements. Nielsen indicated that as the company continues to grow, investments in manufacturing infrastructure position Cirrus to meet customer demand while maintaining high standards of quality and safety.
Photo Credit: Cirrus Aircraft
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