TransDigm Hikes Acquired Aircraft Component Prices by 500% to 700%
Jonathan Tepper · Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110) · Oct 7, 2019 · at 36:12
Author Jonathan Tepper argues that aerospace supplier TransDigm exploits FAA regulatory delays to create monopolies on niche aircraft components and aggressively raise prices.
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“A classic one that hedge funds love and that I think is horrific is Transtime. Basically, there's not competition because to get an FAA part approved takes a very long time, and so you and I can go and provide seat belts cheaper than Transtime, and anytime they buy a company, they're basically a roll-up. They hike prices by five, 607 hundred percent, and they're being looked into by the Department of Defense because the Department of Defense is being gouged, right?”
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