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HEICO: Parts for Planes - [Business Breakdowns, EP.150]

Business Breakdowns

NOTE

Key insights on PMA and OEM risks in the aviation industry

In the aviation industry, PMAs bear more risk in part failures compared to OEMs because they are viewed as not the original part, leading to elevated risk. PMAs must ensure part reliability as regulators attribute failures to them, unlike OEMs who already underwent safety inspections and certification. Lessons from HICO include the importance of aligned incentives for business success, prioritizing the duration of growth over magnitude, and keeping things simple.

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