Still the most popular engine in the world, the CFM International CFM56 is the beating heart of the MRO market, accounting for more dollars spent than any other aircraft system.
It is no surprise, then, that many aftermarket companies base their business around it, none more so than New York-headquartered aircraft engine maintenance specialist FTAI Aviation, which aims to build up the biggest portfolio of CFM56 engines in the world.
For now, this seems like a winning strategy, with a big chunk of the CFM56 fleet still awaiting a first shop visit and older engines staying in service longer due to new-build delays and new-gen engine problems.
That is the accepted wisdom, although this strategy also has risks. A sudden spike in fuel prices or easing of supply chain problems could hit demand for engines like the CFM56 and the International Aero Engines (IAE) V2500. While neither scenario seems likely in the near term, CFM56 specialists will eventually have to prove to investors that they can manage the transition to supporting newer engine types.
Perhaps to hedge these risks, FTAI Aviation has announced a new business to diversify its revenue streams from the CFM56: its new unit, called FTAI Power, will focus on converting CFM56 cores to power turbines for data centers.
Under production beginning this year, the aeroderivative adapted from the CFM56 engine will provide the market with a 25-megawatt unit, and FTAI aims to deliver 100 of the cores annually.
Data centers collectively consume about 500 terawatt hours annually—about 1.5% of global electricity supply—but this is projected to more than double by 2030, according to the International Energy Agency, in line with the expansion of artificial intelligence.
“The CFM56 engine market is the largest and most reliable in the world, making it an ideal candidate for aeroderivative conversion which will further extend the engine’s life,” FTAI CEO Joe Adams says. “At FTAI, we have over 1 million ft.2 of maintenance facilities globally and billions of dollars of engines, which we believe gives us unrivaled capabilities. After over a year in development, we plan to begin production of the FTAI Power aeroderivative using our proprietary conversion architecture offering the market an alternative to address the unprecedented need for electricity.”
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