Engine Lessors Assess Maintenance Trends

Europe boasts strong capabilities in engine maintenance, with a large number of OEM shops as well as airline-affiliated and independent MRO providers that offer services from module changes to full overhauls.

 

Like the rest of the world, though, the region has suffered from tight shop capacity and extended turnaround times resulting from new-generation durability problems, the prolonged operation of current-generation equipment and ongoing supply chain problems.

 

“Turnaround times for heavy shop visits remain lengthy—at least 50% longer than pre-COVID levels—provided a slot can be secured,” says Jaisal Kerai, AVP trading at parts and leasing specialist Aerfin, in an interview with Aviation Week. “Factors such as powder metal issues [on the Pratt & Whitney GTF] and the soft life adjustment of HPT blades have led to more engines requiring heavy shop visits earlier than expected.”

 

He also notes that a tendency toward heavier workscopes has pushed some MRO providers to reject hospital visits and other lighter work as they focus labor and resources on the heavier events.

 

Unfortunately, this is occurring as demand also rises for alternatives such as lighter workscopes, shorter builds and module exchanges—cost-effective solutions that many airlines are seeking in order to operate older equipment for longer.

 

Green time leasing is also challenging, with much of the spare cycles accumulated during the pandemic now used up and lessors pushing up green time terms from three or four months to 12. Kerai confirms this: “Green time leasing remains strong in Europe and the Middle East, particularly for CFM56-7B engines, with most operators seeking 12-month terms or longer.”

 

Yet the overall maintenance outlook is brightening, according to Joe Hussar, head of portfolio for engine lessor ELFC. He tells Aviation Week that, “[Turnaround times] in the overhaul market continue to improve with capacity at both independent and OEM shops, which have made a positive impact on the backlog of engines requiring maintenance.”

 

Hussar adds that shop visit costs have remained predictable for current-generation engines, while the OEMs have made some progress toward reducing the volatility of maintenance costs for newer equipment.