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

Duncan Aviation Press Release