Long waits for parts and extended turnaround times for engine maintenance are adding to already buoyant spare engine demand as airlines scramble to keep their aircraft in revenue service.
Generally, this is great news for engine lessors, which have seen their assets’ values and lease rates shoot up in response.
Yet it also presents problems for those same lessors when they need to manage shop visits themselves.
“All in all the situation is rather satisfactory for engine lessors but the MRO issues arising from the supply chain are tricky,” says Roger Welaratne, managing director of SMBC Aero Engine Lease, in an interview with Aviation Week.
“If one of our engines needs to be overhauled then we face the consequence of long turnaround times too. We understand that engine lessors are benefitting from the appreciation of engine values driven by the current environment but generally we like more stability.”
Even lessors with links to OEMs face hold-ups, notes Ben Hughes, chief strategy officer for Rolls-Royce & Partners Finance.
“We have seen parts supply delays which have resulted in us waiting for shop slots to come available and delayed turnaround-times,” he says. “We can mitigate some parts delays because we have our own stock of used serviceable parts internally that we can tactically use to support our own lease engine portfolio as needed.”
Other lessors have leant on their technical teams to mitigate long TATs and supply chain problems. Willis Lease Finance (WLFC), for example, owns MRO providers in the UK and U.S. that specialize in module swaps and quick repairs.
“Similarly, we have our parts business, Willis Aeronautical Services, which supplies used serviceable material and modules to our own MROs, as well as others. This facilitates throughput in a supply chain-constrained environment,” says Austin Willis, chief executive officer of WLFC.
