The demand for spare engines has increased due to technical issues with new aircraft, accelerating the growth of the independent leasing market, according to one of Ireland’s largest engine lessors.
Richard Hough, chief operating officer at Ireland-based Engine Lease Finance Corp said that supply chain challenges for new engine deliveries have positively impacted the demand for current-generation CFM56 and V2500 engines. The retirement rates of A320 Classic and 737NG aircraft are low, causing a capacity shortfall that cannot be met by new deliveries.
ELFC currently has a portfolio of 360 engines, with 90pc of them being narrowbody engines, and the remaining 10pc being widebody engines for various aircraft models.
ELFC expects the lease market for CFM Leap and Pratt & Whitney GTF engines to be strong.
He said fuel efficiency remains a crucial factor for airline customers in engine selection, but the increased unplanned maintenance requirements have highlighted the importance of durability and reliability.
There is continued demand for minor and specialist engine repairs as an attempt to delay shop visits. Persistent supply chain issues and rising MRO costs have incentivised maximizing the operating time between full refurbishment events.
