Does FL Technics represent a potential conflict of interest for Locatory?

The recent non-commercial blog post “Conflicts of Interest amongst Parts Locator Marketplaces” highlighted a potentially serious issue with some well know parts locator sites. So when we came across a recent press release from FL Technics, we thought it illustrated specifically the point made in the article.

FL Technics is an MRO company owned by Avia Services Group (ASG) of Lithuania. ASG just launched Locatory, a new parts locator marketplace. FL Technics announced last week that it was starting to “part out 7 newly obtained Boeing 737-300.” The press release specifically stated that “the disassembled aircraft components will be used to form and maintain a wider stock of B737 CL spare parts and components as well as to expand FL Technics warehouse portfolio capabilities.” Is it a stretch to assume that these parts will be listed on FL Technics sister company Locatory?

If that happens, how can other suppliers of B737 parts on Locatory be assured that their inventory will be displayed fairly against FL Technics’? Furthermore, how can they be sure that demand (or even pricing) information is not relayed back from Locatory to FL Technics to increase their competitive advantage? How could buyers be assured that when they look for B737 parts on Locatory, they are being shown all their choices and not just that of FL Technics? And even if Locatory behaves independently (as we suspect Captain Locatory will claim), and allow FL Technics competitors to benefit from the platform, how would that play out in the ASG board room?

As the original article pointed out, Locatory is not the only Marketplace with this potential issue and independent parts locator systems offer a much cleaner approach. What do you think?

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