Engine module repair and exchange specialist FTAI Aviation believes it can increase profit margins significantly by using more parts manufacturer approval (PMA) parts.
FTAI Aviation CEO Joe Adams said that while a typical MRO might generate a margin of 15%, FTAI’s unique business model is producing around 35% and could grow even further—to roughly 50%—as more PMA parts come online.
The company’s aerospace products division produced earnings before interest, tax, depreciation and amortization of $131 million at a margin of 36% in the first quarter of 2025.
“The growth opportunity will come from the addition of PMA, which we think will contribute a significant amount of potentially 5-10 percentage points of additional margin once the full portfolio of PMA products is available,” said Adams during a Barclays investor conference.
The company has a joint venture with manufacturer Chromalloy to supply CFM International CFM56 PMA parts at discounted rates to support FTAI’s engine shops. FTAI also receives a share of parts sold to third parties.
In November, Chromalloy received FAA certification for a CFM56-5B/-7B first stage high-pressure turbine stage 1 vane—the second of five CFM56 parts planned to feed into the joint venture.
Adams said FTAI is very close to accruing most of the profitability benefits of this arrangement with Chromalloy.
“Excellent progress is being made,” he said. “We’re nearing the home stretch; it is very close for the next part to be approved, which is the most significant, part. The 80% of the savings will come from the first three parts in the program.”
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