UPDATE 1-HEICO to target generic parts sales to small airlines

(Adds context, comments from interview)

By Allison Lampert

PARIS, June 19 (Reuters) - Aerospace supplier HEICO Corp is targeting generic parts sales to smaller airlines that lease their planes, which could generate millions of dollars as demand to keep aircraft flying soars, co-president Eric Mendelson said on Monday.

HEICO has made inroads in selling generic aircraft parts to service planes leased by larger carriers.

Now, the company is trying to grow sales with smaller carriers which are not always aware they can negotiate using such alternative parts in their leasing contracts, he told Reuters on the sidelines of the Paris Airshow.

The strategy comes as airlines and aircraft repair shops are increasingly relying on used and generic parts to keep jets flying at lower costs, as supply chain disruptions sometimes hinder availability of name-brand parts from companies such as General Electric Co.

Lessors usually allow their planes to be serviced with alternative aircraft parts, such as those that have obtained parts manufacturers' approval (PMA) from a regulator, but their usage must be negotiated in advance, Mendelson said.

Inroads in the smaller market "would mean millions of dollars in sales for HEICO and a similar amount of savings for airlines," he said.

Mendelson said if HEICO could fully crack the leasing market for smaller carriers the company could grow its total sales of generic parts by roughly 25%.

In May, HEICO said it would buy Wencor Group in a deal valued at $2.05 billion to boost its portfolio of generic parts. (Reporting by Allison Lampert Editing by Tassilo Hummel and Mark Potter)