HHEIHeico Corporation

HEICO makes certified replacements for aircraft parts — cheaper than the original manufacturer's.

The business rests on regulatory approval to make a part equivalent to the original without the airframe maker's involvement. The airline gets the same function markedly cheaper, and the company earns a margin an ordinary supplier never sees. Certifying each part is slow and expensive, which is the barrier to new entrants.

Revenue follows fleet flight hours rather than new aircraft production: the more flying, the more frequent the replacements. The second line is electronics for defence and space. Regulatory approval for a replacement part takes years, and that same barrier keeps new competitors out. The company is family-run, grows by acquiring small manufacturers and pays a small dividend.