Aviall, Inc.

Annual Report 2000

Contents
Contents
Financial and Strategic Highlights
Letter to Shareholders
Business Review –
Questions and Answers
Management’s Discussion
and Analysis
Consolidated Financial Statements
Profile
Profile
Aviall, Inc., headquartered in Dallas, Texas, is a
major solutions provider of aftermarket parts sales,
supply-chain management, and related value-added
suppor t ser vices for the aviation and marine
industries. Aviall Services is the world’s largest
independent global provider of new aviation parts,
while the Company’s Inventor y Locator Ser vice
(ILS) subsidiary is a leading electronic marketplace
and provider of aviation and marine inventor y
information services. As of year-end 2000, Aviall
employed over 800 persons at its Corporate
headquarters and business units.
Aviall Services markets and distributes worldwide
some 340,000 unique aircraft and related engine
line items from more than 170 quality suppliers.
It serves almost 17,000 commercial and general
aviation operators, including over 250 airlines,
from its central warehouse complex in Dallas and
through its network of customer service centers
and sales offices in North America, Europe and
the Asia-Pacific region. Aviall Services also provides
key value-added ser vices, such as supply-chain
1
2
Notes to Consolidated
Financial Statements 28
Report of Independent Accountants 40
6 Supplemental Financial Data 41
Directors and Officers 42
19
Corporate/Shareholder
24 Information Inside Back Cover
planning and analysis systems, and extended
operational support, such as economical repairs
and other services, for aviation batteries, hoses,
wheels and brakes.
ILS is the leading independent information provider
and electronic marketplace facilitating the buying
and selling of parts and services within the global
aviation, commercial marine, and defense
industries. With 24-hour availability via both the
Internet and traditional dial-up, the ILS database
is accessed more than 29,000 times each business
day and serves 3,800 subscribing companies and
8,500 individual users in over 70 countries.
ILS is headquar tered in Memphis, Tennessee.
Aviall, Inc., is listed and principally traded on the
New York Stock Exchange under the symbol “AVL.”
®
Financial Highlights
(In thousands, except per share data)
PERCENT
FOR THE YEAR 2000 1999 CHANGE

Net sales $485,920 371,901 + 31 %

Gross profit 111,264 95,425 + 17
Earnings from continuing operations 10,566 5,115 +107
Net earnings 11,628 9,703 + 20
Earnings per share – continuing operations 0.58 0.28 +107
Net earnings per share 0.64 0.53 + 21
Weighted average shares outstanding – diluted 18,337 18,474

AT YEAR-END

Working capital $132,194 113,565 + 16 %

Current ratio 2.26:1 2.55:1
Total assets 395,451 340,640 + 16
Total debt 90,422 78,011 + 16
Total shareholders’ equity 191,674 179,233 + 7
Total debt to total capital 32.1% 30.3%
Common shares outstanding 18,333 18,273

Strategic Highlights
Aviall, Inc. reported substantially improved year-to-
year financial results in 2000: net sales up 31%;
gross profit up 17%; earnings from continuing
operations up 107%; and net earnings up 20%.
SG&A expense as a percentage of sales in 2000
dropped 300 basis points versus 1999.
Aviall Ser vices, working with leading outside
technology providers, substantially enhanced its
existing systems related to the management of the
Company’s e-commerce capabilities, customer
relationships, enterprise resources, warehouse
operations and total systems integration.

Aviall Services successfully integrated the Rolls-
Royce Model 250 Engine Program into its business
mix. As a new product family for the Company,
the Program generated more than $100 million in
incremental sales during the year, surpassing
original budget estimates.
Aviall Services was awarded, in December 2000,
the 10-year aftermarket distribution rights for
Honeywell hydromechanical controls products used
on Rolls-Royce and Honeywell engines. The
Company expects this new program to produce
additional sales of up to $20 million annually.
Aviall Ser vices launched, in Februar y 2001, a
completely new look at its website, aviall.com,
offering greatly expanded information and user-
friendly functionality as the Company’s online order
management system.
Inventory Locator Service (ILS) introduced significant
new value-added modules and features, such as
BidQuest and Purchase OnlineSM catalogues, to its
ongoing “Contact to Contract TM” initiative offered
through its industry-leading website, ILSmart.com.
ILS set new records throughout 2000 in usage
indicators: web-based client usage jumped 185%;
inventory listings climbed 10%, reaching 43 million
line items and more than 5 billion parts; overhaul
capability listings exceeded 1.6 million line items;
and total transactions increased by over 14%. In
addition, the number of ILS’s average daily accesses
and daily requests for quotes both rose strongly
during the year.

1
 Aviall, Inc. Annual Report 2000
Letter to Shareholders
For Aviall, Inc., 2000 was a year of momentum –
momentum born of new management, of success
in the marketplace, and of our major investments
in technology, people and facilities.
Financially, we made substantial strides by
returning to our historical record of growth in
corporate sales, earnings and cash flows.
Operationally, we moved ahead with our new Rolls-
Royce distributorship; growth in our other core
parts business; implementation of new technology;
and enhancements to our e-commerce por tals.
And while as management we never will be fully
satisfied, in truth, we are pleased with Aviall’s
progress last year. The year 2000 was productive
and rewarding, and the momentum we established
companywide should hold Aviall in good stead as
we look to 2001 and beyond.
2000 Financial Results
For the year ended December 31, 2000, Aviall
recorded strong total sales of $485.9 million, up
$114.0 million or 31% from the prior year. By unit,
sales of Aviall Ser vices rose $115.9 million, or
2/3
34%, to $457.9 million, while Inventor y Locator
Ser vice (ILS) sales of $28.0 million were $1.9
million or 6% below the 1999 level. Aviall’s gross
profit in 2000 was $111.3 million, an increase of
$15.8 million or 17% versus the prior year’s level
of $95.4 million. In 2000, selling, general and
administrative expenses (SG&A), as anticipated,
increased year over year by $8.8 million, related
primarily to expenses for our e-commerce initiatives,
realignment and development of our sales coverage
model, integration of the Rolls-Royce product line,
and upgrades to our operating infrastructure.
Particularly gratifying to our cost-control efforts,
however, was our clear-cut success in continuing
the downward trend in SG&A spending as a percent
of sales. In 2000 versus 1999, our SG&A expense
ratio dropped for the full year by 300 basis points
to 17.4% and for the four th quar ter alone by a
substantial 630 basis points to 16.9%. As a result,
 Aviall, Inc. Annual Report 2000

Aviall’s earnings from continuing operations in
2000 – $10.6 million and 58 cents per share –
were more than double 1999’s comparable levels
of $5.1 million and 28 cents per share. Net
earnings, which include discontinued operations
in both years, were $11.6 million, or 64 cents per
share, in 2000 versus $9.7 million, or 53 cents,
in 1999. Additional details of our 2000 results
are contained in Management’s Discussion, the
Consolidated Financial Statements and the related
Notes later in this Report.
2000 – A Year of Momentum
In last year’s Annual Report, as Aviall’s new
chief executive officer, I outlined several specific
areas in which we would be aggressively working
to advance and ensure the Company’s future
industry leadership. Against the objectives set out
at that time, during 2000, we achieved the following:
completed the underlying technology behind a
substantial new look and, more importantly, greatly
enhanced functionality of our award-winning
aviall.com website. This unmatched, web-based
order management system was formally rolled-out
in February 2001.
■ At Aviall Services, we implemented a host of
upgrades to our infrastructure technology across
multiple corporate functions: with Siebel, we
launched a new Customer Relationship Management
(CRM) module, work on which is continuing this
year; with Lawson, we greatly enhanced our
Enterprise Resource Planning (ERP) system, first
installed in 1999; and with Neon’s integration
technology, we coordinated our BroadVision, Siebel
and Lawson systems. This represents a unique
and powerfully integrated OEM-to-customer supply-
chain platform.

■ At Aviall Ser vices, we ■ At Inventor y Locator Ser vice, we formally

Net Sales
In Millions
$485.9
successfully assimilated the introduced key components of our new online
500
$100+ million Rolls-Royce Model “Contact to Contract™” initiative – for example,
$371.9
400 250 Engine Program into our BidQuest, Buyers Auctions and “Purchase Online”
business mix. Both sales and catalogues. With these value-added features, and
300

earnings for this program those still to come in 2001, we have, through our
200
exceeded first-year budget ILSmart.com website, moved our aviation and
100 expectations. marine subscribers ever closer to the industr y’s

0
first true one-stop capability to fully research
99 00 ■ At Aviall Ser vices, with and complete purchase transactions online.
BroadVision’s key support, we

4
 Aviall, Inc. Annual Report 2000

■ Also at ILS, we continued to set new With Our Continuing

Gratitude
user/subscriber and database records, maintaining
Net Earnings
We would once again like
our stature as the industry’s largest online aviation In Millions
14
to take the occasion of our $11.6
and marine procurement sour ce. Today,
12
Annual Report to express our $9.7
ILSmart.com hosts more companies (3,800), 10
sincere gratitude to our
individual users (8,500), daily accesses (29,000), 8
employees, customers,
daily requests for quotes (19,000), and online 6

suppliers and shareholders,

inventory (43 million line items representing over 4

who have collectively given us 2

five billion parts) than any other competitive offering.
the skills, dedication, loyalty, 0

99 00
r esour ces and patience
Looking to the Future
necessary to accomplish our business objectives.
As we move through 2001, we look to continue
The Company owes its progress to date to you.
the momentum – both financially and operationally
In return, we promise to match your invaluable
– that we re-established last year. We are moving
contributions with our own total commitment to the
forward on a number of new business development
continuing job at hand – that is, translating the
fronts aimed at expanding our market segments
momentum we have built together into an
and customer bases, at formalizing new strategic
Aviall nothing shor t of the most ef ficient,
partnerships, at increasing sales of our existing
technologicially advanced and customer-focused
product lines, at generating additional sales through
company in the industry.
new product rights (such as those recently acquired
from Honeywell), and at introducing even more
value-added services and e-commerce capabilities.
And, more broadly, we will continue to redefine and
strengthen our systems, people and processes as
we transform Aviall’s traditional product offerings
Paul E. Fulchino
into a platform, or highway, of integrated product
Chairman, President and
services. We are confident that our efforts will be
Chief Executive Officer
rewarded through increased corporate profitability
March 26, 2001
and greater shareholder value.

We are confident that our efforts

will be rewarded through increased
corporate profitability and greater
shareholder value.
5
 Aviall, Inc. Annual Report 2000
Inventory Locator
Service
ILS has become…the most trusted and
comprehensive source for online procurement
of aftermarket aviation and marine parts,
equipment and services.
How does the ILS electronic marketplace
benefit subscribers?
In 1979 ILS was the originator of the electronic
marketplace concept. Today, in its 23rd year of
operation, ILS has become not only the best-known,
but also the most trusted and comprehensive
source for online procurement of aftermarket
aviation and marine parts, equipment and services.
ILSmart.com subscribers now number approximately
3,800 companies with over 8,500 users in more
than 70 countries, including 200 airlines, 100 ship
management companies, 600 repair facilities, most
major OEMs, 45 government procurement agencies
and the Federal Aviation Administration (FAA). With
an online inventor y of more than 43 million line
items representing over 5,000,000,000 (that’s
billion!) parts, ILS, primarily through its website,
6/7
ILSmart.com, hosts more than 29,000 accesses
and 19,000 RFQs (requests for quotes) each
business day – a level of activity unequalled in the
industr y. As a result, both buyers and sellers
through ILS enjoy unmatched efficiency (a “hit rate”
of almost 80 percent in searches) in quickly
identifying each other, benefiting from the system’s
administrative ef ficiencies, and successfully
completing their transactions.
What does the “Contact to Contract” initiative
really mean to ILS subscribers?
When completed, our “Contact to Contract™”
program will make a greatly expanded array of
capabilities available to ILS subscribers. The goal
is to introduce broader and deeper information
ser vices and supply-chain efficiencies on both
 Aviall, Inc. Annual Report 2000
sides of a transaction,
thereby enabling ILS
subscribers to conduct
literally every aspect of
a typical par ts pro-
curement process online. Subscribers will sign
on; search par t and product segment sales
histories; retrieve and inspect desirable par t
information, including related recordkeeping and
required documentation; place bids online; chat
regarding bids; connect to OEM websites; utilize
web-hosting and conferencing features; complete
order management in terms of credit, escrow,
shipping, special instructions, etc.; and benefit
from value-added ser vices such as customized
reports, advertising and auctions. Thus, “Contact
to Contract” will facilitate essentially every facet
of the business transaction – “from soup to nuts”
– helping sellers earn greater profits and buyers
achieve significant savings of time and money.
Contact to Contract™
ILS’s Contact to Contract initiative will allow buyers and sellers to complete transactions online, in real time,
and to exploit e-commerce to its fullest, greatly expanding the array of capabilities available to ILS subscribers.
Key value-added components were introduced in 2000, with more to come in 2001.
8
How will ILS maintain its marketplace
leadership versus the recent alliances of OEMs
and Airlines and other dot-com competitors?
Despite their recently formed alliances, most
of the individual airline and OEM participants have
been, and remain, ILS customers. In fact, their
alliances are really more just extensions of their
customary supply-chain activities (leveraging buying
power through the group, for example), and not
really true electronic marketplaces at all. In that
sense then, ILS actually complements the alliances,
rather than being competitive. Nonetheless, we
have placed a strong bet on technology to help us
not only maintain, but also extend our e-market
leadership. Developing and implementing leading-
edge applications, as we did throughout 2000, has
allowed ILS to continually provide additional value
to its customers. Our “Contact to Contract” program
discussed before is one clear example of our value-
added strategy. In addition, our ILSmart.com
website offers many other related capabilities to
maximize ILS subscribers’ online experience. For
example, our BidQuest feature, launched last year,
greatly increases the efficiency of soliciting online
bids from numerous vendors simultaneously.
Likewise, our Purchase Online program will speed
transactions by allowing buyers and sellers to
quickly view online all the information (such as
pricing, deliver y and prior
ordering data as well as
drawings and other
documentation) necessary to
complete a sale.
 Aviall, Inc. Annual Report 2000

Developing and implementing leading-edge

applications, as we did throughout 2000,
has allowed ILS to continually provide
additional value to its customers.
What is ILS’s long-term Internet strategy? and general aviation aircraft
We can talk about some of our longer-term in operation will continue Daily Website Accesses

Internet strategy, but, because of competitive to increase annually as will 29,000 30,000

considerations, we have chosen to keep other the number of marine vessels.

28,000
aspects confidential. Through ILSmart.com, we This in itself will both raise
currently provide substantial amounts of information demand from our current 25,000 26,000

24,000
and technical features for ILS subscribers. customer base and bring new 24,000

Maintaining our technology and data leadership is potential customers to the ILS
22,000
the business model we plan to retain going forward, marketplace. Second, ILS will
20,000
and we will continue to upgrade our website toward introduce new ser vices and
98 99 00
this end. We will add power ful system enhance- products, as mentioned earlier,
ments involving online document management, to generate additional average revenue per
online processing of credit card payments, new subscriber. Third, ILS will develop additional market
online information search technologies, and niches, such as enlarging our general aviation
numerous other collaborative tools. The common capabilities or our offerings to the “brown water”
thread, however, is that all of the new features that (smaller vessel) marine marketplace. And, lastly,
we will incorporate into ILSmart.com will additionally we plan to continue to enter into new partnerships,
empower buyers and sellers; will bring attractive such as that currently in place with Dun & Bradstreet
supply-chain efficiencies to both buyers and sellers; to provide online credit reports to our subscribers.
and will add ever greater value to ILS ser vices We believe that each
for subscribers. of these means will
enable ILS to recapture
How does ILS plan to continue to grow in the momentum of
the future? continuing revenue
ILS will grow in the future as a result of several growth and enhance its
factors. First, we look to the continuing growth market leadership in the Bruce Langsen
trends of the industries we ser ve – aviation and years ahead.
marine. Worldwide, the numbers of airline, cargo

9
 Aviall, Inc. Annual Report 2000
Aviall Services
No competitor comes close to matching
Aviall’s technology, breadth and depth of
pr oduct lines, and ar ound-the-world
geographic coverage.
What makes Aviall Services so different from
the many other aircraft parts providers?
There are many attributes that distinguish Aviall
Services. We are the industry’s largest independent
provider of aerospace parts and related services.
In fact, no competitor comes close to matching
Aviall’s breadth and depth of product lines and
around-the-world geographic coverage. In sales,
our global reach is five times our nearest competitor.
But beyond products and people, our key distinction
for the future, we believe, is the suppor ting
technology that creates supplier and customer
efficiencies. For example, our dual-access platform
– dial-up and through the Internet – is the most
versatile and active in the business. And, more
broadly, we are committed to implementing an
advanced information technology that in global
selling, e-commer ce, customer ser vice,
10/11
manufacturing and sales planning, distribution
logistics and inventor y management will cement
Aviall Ser vices’ competitive advantage for years
to come.
What role does Aviall Services play in reducing
supply-chain costs and improving efficiency
for both manufacturers and customers?
With our advanced technology as the foundation,
Aviall Services is delivering ever increasing value
to OEM suppliers through more customized,
integrated and efficient production planning, asset
management, marketing and selling, fulfillment,
customer suppor t, competitive intelligence and
sales reporting. Manufacturers also benefit from
Aviall’s “market basket” of complementary products
and services. In effect, sales of one product help
generate sales of other products, improving sales
 Aviall, Inc. Annual Report 2000
coverage and productivity
for all. And, after the
sale, our suppliers’ credit
and collection exposure
is lessened because
Aviall owns the inventory.
Dan Komnenovich
As to end-customers, we
provide numerous advantages: greater product
choice, complete part searchability, worldwide 24/7
availability, favorable pricing, advanced order
management technologies, administrative
efficiencies, faster delivery cycles, lower logistics
and fulfillment costs, customized buyer reports,
improved inventory planning tools, and enhanced
after-purchase support.
Will the flood of e-commerce sites nowadays
reduce the role of an aviation industry parts
provider like Aviall Services?
Not at all. In fact, if anything, we believe that
the advent of e-commerce and successful e-
commerce applications to date have actually
validated Aviall’s role. Clearly, some e-commerce
goals, such as a clearing-house marketplace, highly
visible information for all, readily available inventory
and reduced transaction costs, are attainable. In
day-to-day practice, however, the “new economy”
vision must still accommodate “true economy”
realities. “Passive” exchanges – that is, those
without suppor ting infrastructures – will be
Aviall will be highly valued for its ability to
support extensive information needs, reduce
supply-chain transaction costs and time, and
improve administrative efficiencies.
12
constrained in their value propositions. Most
individual business cultures will remain; most
customers and suppliers will continue to engage
in familiar lines of communication; growing customer
bases will actually increase the need for coverage
and personal contacts; and a traditional, but
enhanced full-ser vice logistics provider such as
Aviall will be more highly valued for its ability to
support extensive information needs, reduce supply-
chain transaction costs and time, and improve
administrative efficiencies. Suppliers and customers
also appreciate Aviall’s ability to own and
strategically deploy inventory and effectively execute
its full-service logistics and fulfillment capabilities
that facilitate every transaction. By blending the
strengths of both economies – “efficient bricks
and clicks” – Aviall’s continuing, indeed increasing
role in the aviation supply chain is assured.
How has the Rolls-Royce 250 Program/product
line performed versus the Company’s initial
expectations?
Very well. We have been very pleased with our
Rolls-Royce relationship through which we are the
exclusive aftermarket distributor of their Model
250 turboprop and turboshaft engine parts. The
Program’s performance has, in fact, exceeded our
original expectations – both financially and
operationally – since it began in Januar y 2000.
 Aviall, Inc. Annual Report 2000

aviallability
Developed to strengthen and extend the Aviall Services brand, this initiative, introduced in late 2000, embraces
the idea that Aviall Services delivers ever increasing value to customers and suppliers through a vast array of
products, services, technological advancements, supply-chain efficiencies, and enhanced after-purchase support.
In addition to the “aviallability” tagline, aviallability features a friendly new “look and feel” that is integrated
throughout all of Aviall Services’ marketing tools – from advertising and promotional materials to the new Aviall
Services trade show booth and new-generation aviall.com website.

What is Aviall Services doing to enhance its 2000 Sales by Customer Type

people assets and sales efforts? General Aviation 13%

44%

In 2000, in anticipation of increasing personnel Commercial Airline 9%

demands throughout the Company, we substantially
increased training programs for key segments of
our existing workforce. And, just as aggressively,
we stepped up our effor ts to recruit the best in
new aviation sales talent from leading universities.
As a result, we have successfully upgraded and
added to our staffs in technology development,
operations, sales and marketing, administration
and management. We have imposed a clearly
defined, results-oriented performance philosophy
at all levels, backed up by management full
accountability. In sales and marketing specifically,
we have brought in key new people and given all
of our personnel the tools necessar y to provide
the product scope, market coverage, individual
customer reach and
all-inclusive ser vice
depth that makes
Aviall second to none
in the industry.
What are Aviall Services’ Internet strategy
and other plans for 2001 and beyond?
Our principal goal, through the Internet and
other wise, is to continue the strategic business
Broker
6% 28%
Regional Airline
Government/Other
transformation of Aviall Services from a traditional
aviation parts distributor into the industry’s leading
full-ser vice, technologically based supply-chain
highway. The main Internet component of this
broader strategy is the continued upgrade of
aviall.com. Here our priority is to complete the
phased-in development and introduction of all the
site’s planned content. Aviall.com will include
enhanced order-entry features, the industry’s most
extensive online catalogue, a complete and user-
friendly search engine, advanced portal functionality,
an improved order and part tracking capability, and
the ability to customize features for selected
suppliers and customers. Complementing our
Internet strategy, Aviall Ser vices will also
aggressively pursue additional areas of business
development. These will include new supplier
agreements and alliances, competitive growth in
the large aircraft segment of the airline market,
more emphasis on the piston and general aviation
sector, and expanded marketing initiatives for value-
added ser vices, such as rotables management
and wheel and brake operations.

13
 Aviall, Inc. Annual Report 2000
Corporate Strategy
Financially, by sharply growing total sales
and earnings for the Corporation, we restored
the momentum interrupted in 1999.
Was the Company’s overall strategic progress
during 2000 equal to management’s plans?
We were able to achieve our original strategic
goals set last year. We took big strides in
technology, either completing or significantly
progressing against our plans to implement major
new capabilities in customer relationship
management, in storage area networks, in enterprise
applications integration and in enterprise resource
planning. In e-commerce, we completed the
development work underlying the introduction in
February 2001 of our new aviall.com website, and
we implemented several new features to our
ILSmart.com electronic marketplace. Operationally,
Aviall bolstered its workforce through significant
new hires at every level and across every functional
area of the Company. And, financially, by sharply
14/15
growing total sales and earnings for the Corporation,
we restored the momentum interrupted in 1999.
Why has Aviall chosen to move ahead
independently in technology rather than
seeking strategic “partnership opportunities”?
During 2000, we closely evaluated the financial
and operational implications of various possible
strategic relationships to achieve our technology
goals. In the end, however, Aviall’s management
and Board of Directors decided that it was clearly
in the Company’s and its shareholders’ best
interests to move ahead independently in this
regard. But, independently does not mean alone.
In fact, during last year we engaged the services
as consultants or systems providers of such
technology heavyweights as BroadVision, Siebel,
 Aviall, Inc. Annual Report 2000

For 2001 and beyond, we are looking at a

significant number of additional business
opportunities, including possible acquisitions
and major new product distribution agreements.

Lawson, Neon, Sun, Cisco and Oracle. By combining
our in-house capabilities with their substantial
technical resources, we have remained on schedule
toward all of our technology objectives.
How will Aviall compete with the many new
aviation industry portals and e-commerce
collaborations? What will be the payback for
the Company’s large technology investments?
As was mentioned earlier, in many ways Aviall’s
websites – aviall.com and ILSmart.com – are
actually more complementary than competitive with
the new aviation portals and collaborations, which
have neither the logistics capabilities of Aviall
Ser vices nor the true electronic marketplace
advantages of ILS. That aside, however, there will
be a substantial return on our technology
investments by assuring that
reward for our investors and more cost-effective
alternatives for our suppliers, customers and
subscribers.
What if the aviation industry doesn’t move
forward as quickly as you expect in its adoption
of web-based applications?
There is little doubt that e-commerce is a
significant wave of the present and future, and we
are making substantial investments preparing for
it as it unfolds. But, just in case its full emergence
is somewhat delayed, we have hedged our bets.
We have also invested significant sums on improving
our facilities infrastructure and in nonweb-related
technologies to strengthen our customer service,
sales and marketing, inventory management, order
entry and fulfillment, and the overall productivity
of our physical and human capital. As a result, we

Capital Expenditures each unit remains at the are totally confident that whatever the pace of the
In Millions
$11.0 forefront of its industr y niche ongoing “e-volution,” Aviall will be prepared to
12
relative to any competition – provide its customers and suppliers with the most
10

new or old. Our leading-edge efficient and cost-effective business resources in

8

6
systems will make us more the aviation parts industry.
$4.3
$3.7
4 efficient in conducting all of our
2 business processes, and that
0 means more profitability as a
98 99 00

16
 Aviall, Inc. Annual Report 2000

Are there any more strategic distributorship/
product line additions ala Rolls-Royce and
Honeywell on the Company’s horizon?
As was mentioned earlier, we have been quite
pleased with the first year of our Rolls-Royce
relationship, and we believe that the success of
that program was a positive factor in our recent
product line award from Honeywell. We have stated
that one of our strategic objectives is, in fact, to
enter into more such distributorship/product license
arrangements not only with other major suppliers,
but with additional programs from both Rolls-Royce
and Honeywell possible as well.
What are the Company’s financial targets and
capital structure objectives?
Our longer-term financial targets are ambitious.
For example, by 2005 our business plans call for
the Company to exceed $700 million in revenues;
to approximately triple earnings per share from
2000; and to earn for our shareholders a ver y
satisfactory corporate return on invested capital.
To achieve these goals, for 2001 and beyond, we
are looking at a significant number of additional
business oppor tunities, including possible
acquisitions and major new product distribution
agreements. As a result, one of our key objectives
this year will be to re-assess our capital structure
and to put in place whatever additions or changes
are necessary to ensure that we have the financial
resources at our disposal to complete any strategic
opportunities of which we choose to take advantage.
What is the Company doing to increase
shareholder value?
Aviall works hard to tell its story credibly and
consistently to investors and all other interested
audiences. We regularly communicate our strategy,
results and prospects through newsletters and
financial publications, press releases and quarterly
earnings conference calls open to all, and through
meetings and other discussions, both one-on-one
and before groups. By doing so, the Company
seeks to achieve an increasing, but fair shareholder
value consistent
with our peer
group, track record
and future outlook.

aviall.com
Rolled-out in February 2001, the new-generation aviall.com features unmatched functionality that
leverages all of Aviall Services’ technology upgrades. Whether customers need one part or hundreds,
they are now only seven clicks away from order completion. The website showcases a revolutionary
multiline order capability that allows customers to “cut and paste” from their own spreadsheet or
parts list directly into aviall.com. Customers get instant availability and pricing. Response time
for large quotes and orders, normally hours to days industrywide, is cut to seconds on aviall.com.

17
North American Distribution Centers

Anchorage

Customer Sales Office

Customer Service Center/ Calgary

Forward Stocking Location

Product Repair Facility Vancouver

Winnipeg
Halifax
Montreal
Portland
Ottawa Boston
Minneapolis Toronto
Teterboro
Chicago Pontiac
Philadelphia
Pittsburgh
Denver Cincinnati
San Jose Kansas City

Oklahoma City Raleigh

Van Nuys
Phoenix Memphis
San Diego
Dallas Atlanta
Ft. Worth

San Antonio Lafayette

New Orleans
Houston
Miami

International Distribution Centers

Helsingborg

Amsterdam
London Dusseldorf

Madrid Beijing
Pacific Export

Dallas Export
Latin America Export
Hong Kong

Singapore

Customer Sales Office Cairns

Customer Service Center
Agent
Perth Brisbane
Product Repair Facility Sydney
Auckland
Melbourne

18
Corporate/Shareholder
Information
EXECUTIVE OFFICES INVESTOR RELATIONS
AVIALL, INC. General inquiries from investors or correspondence
2075 Diplomat Drive concerning Aviall investor communications may be
Dallas, TX 75234-8999, USA directed by phone, letter, fax or e-mail to:
(972) 406-2000
David Leedy
Fax: (972) 406-2071
Aviall, Inc.
Website: www.aviall.com
2055 Diplomat Drive
Dallas, TX 75234-8989, USA
INVENTORY LOCATOR SERVICE, INC.
(972) 406-6671
3965 Mendenhall Road
Fax: (972) 406-6616
Memphis, TN 38115-5919, USA
E-mail: investorrelations@aviall.com
(901) 794-5000
Fax: (901) 794-1760
STOCK SYMBOL
Website: www.ILSmart.com
AVL
TRANSFER AGENT/REGISTRAR
STOCK LISTED OR TRADED
Communications regarding transfer requirements,
New York, Chicago and Pacific Stock Exchanges
lost stock certificates, address changes or
stock accounts should be directed to:
ANNUAL MEETING
Fleet National Bank 1:30 p.m., Thursday, June 7, 2001
c/o EquiServe Omni Mandalay Hotel
P.O. Box 43010 221 East Las Colinas Boulevard
Providence, RI 02940-3010 Irving, TX 75039
(800) 730-4001
www.equiserve.com STOCK PURCHASE PLAN
Any holder of record may purchase additional shares
INDEPENDENT AUDITORS of Aviall, Inc. up to 12 times a year by sending a check
PricewaterhouseCoopers LLP to the address listed below. These purchases must be
2001 Ross Avenue in amounts no less than $25 per month and no more
Suite 1800 than $15,000 per calendar quarter.
Dallas, TX 75201
EquiServe
(214) 754-7900
Dividend Reinvestment Dept.
P.O. Box 43010
Providence, RI 02940-3010

This Annual Report contains certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating
to the Company that are based on the beliefs of the management of the Company, as well as assumptions and estimates made by and information
currently available to the Company’s management. When used in this Report, the words “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar
expressions, as they relate to the Company or the Company’s management, identify forward-looking statements. Such statements reflect the current
views of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions relating to the operations and results
of operations of the Company as well as its customers and suppliers, including competitive factors and pricing pressures, shifts in market demand, general
economic conditions and other factors such as those that affect flight activity in commercial, business and general aviation, the business activities of
the Company’s customers and suppliers and developments in information and communications technology. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated,
believed, estimated, expected or intended.
 Aviall, Inc.
2075 Diplomat Drive
SKU # 2770-AR-2001
Dallas, Texas 75234-8999, USA