Scarcity, Demand And Scrutiny Shape Legacy Engine Materials

Keeping aging engines flying efficiently has never been more complex. Rising standards for certification, limited feedstock and selective teardown sourcing are forcing operators and MROs to reconsider how they secure critical parts.

As legacy engine feedstock becomes scarcer and certification demands intensify, the used serviceable material (USM) sector is shifting from opportunistic deals to a structured, quality‑­led supply chain. Operators, MROs and independent suppliers are prioritizing precision sourcing, full life-cycle traceability and component‑based economics to sustain the efficiency of aging fleets.

TIGHTENING AVAILABILITY

Over the past year, tightening feedstock on mature engine platforms has prompted APOC Aviation to broaden its sourcing avenues and take a more forward‑leaning approach to acquiring assets earlier in the cycle.

“We now place greater emphasis on long-term purchasing arrangements and partnerships with operators and lessors,” Bruce Ansell, technical manager of the engine division at APOC Aviation, tells Inside MRO. He notes that the goal is to increase predictability in material flow while maintaining flexibility to act quickly when quality assets become available.

Meanwhile, as market availability has tightened and asset prices have climbed, EirTrade Aviation has adopted a more disciplined approach to capital deployment and platform selection. The focus at EirTrade is turning toward the widebody fleet, specifically the Pratt & Whitney PW4000 and GE Aerospace CF6-80C2 and CF6-80E engines, as these variants continue to offer a strong combination of feedstock availability, parts demand and long-term operational relevance within the widebody fleet, says Alex Usov, sales manager at Eir-Trade Aviation.

“This shift has helped us maintain a reliable pipeline despite the tighter supply environment,” Usov says. EirTrade is also keeping a close watch on legacy engine programs, ensuring it can move decisively when compelling opportunities emerge.

In recent years, the expected surge in retirement activity failed to materialize, observes John McCarthy, director of business development for Europe at VAS Aero Services. Airlines kept aircraft and engines in service longer than expected due to strong demand, supply chain delays and limited availability of replacement capacity.

Recognizing the market was headed for a shortfall in feedstock availability, VAS strategically invested in engine assets to continue supporting airlines and MROs; these have included the CFM International CFM56-5B, IAE V2500 and PW4000, among other target platforms.

McCarthy expects that in the coming years, VAS will tap into a larger pool of high‑quality, certified used components to support its worldwide aftermarket customers.

Interestingly, Cliff Topham, senior vice president of sales and business development at Werner Aero, notes that demand for legacy engines remains strong, particularly for green‑time operations, making economic build life a critical factor. He adds that identifying the right engine profile is increasingly difficult—units with too much life left are costly, while those with too little offer limited economic opportunity for component rebuilds.

CERTIFICATION AND TRACEABILITY CHALLENGES

There is an expectation that certification and traceability requirements will become more complex as operators rely more heavily on USM for life‑­limited parts (LLP). It will also be important to understand whether industry specialists are beginning to observe any structural changes in pricing for high‑value modules or LLPs.

McCarthy observes a greater emphasis on certification and traceability as reliance on USM for LLP replacement increases. Regulators and lessors, he says, are now insisting on more rigorous back‑to‑birth documentation, complete chain‑of‑custody records and greater clarity around configuration histories.

“Deeper documentation audits and digital record management are helping us overcome certification and traceability challenges,” McCarthy says.

Moreover, McCarthy notes that material with complete, pristine traceability can now command a premium, while partially traced parts may require price discounts. “Many operators find that anything that helps them meet regulatory requirements and avoid OEM lead times is worth an incremental price difference,” he says.

Ansell from APOC echoes similar views, noting that for LLPs and major modules, the bar on traceability has risen. “Operators are more risk-averse, which means incomplete back-to-birth documentation or mixed-­operator histories are far less acceptable,” he says. Thus, certification expectations from auditors and regulators have also become stricter, particularly around documentation integrity.

CHANGING ATTITUDES?

Perspectives from EirTrade and APOC suggest OEMs are increasingly accommodating USM on mature platforms out of necessity, but access and cooperation remain selective and platform-specific.

“We’re seeing a gradual shift in how OEMs interact with the USM market,” Usov notes. On mature engine platforms, Usov says OEMs are increasingly recognizing that USM is critical to controlling operating costs, which in turn has paved the way for more productive discussions on repair standards, turnaround expectations and associated cost structures.

APOC is seeing increasing cooperation, especially where OEMs recognize USM as essential to keeping aging fleets operational. “On others, we still encounter tension,” Ansell notes. Overall, he says operators of mature fleets rely heavily on independent USM channels, and OEM attitudes can directly influence market efficiency and turnaround times.

Similarly, Usov says that some OEM policies, especially those that restrict access to certain repairs on newer‑­generation engine material, continue to limit flexibility for operators that rely on cost‑effective, adaptable material solutions.

McCarthy says VAS places strong value on its long‑established partnerships with the major engine OEMs and does not foresee any meaningful change in the competitive landscape for mature engine platforms in the near term. “The reality is that in the current supply chain-constrained environment, the aviation industry is reliant upon airworthy USM parts to keep fleets flying,” he says.

MATERIAL SUPPLY

Looking ahead, some in the industry have raised the possibility that an oversupply of teardown engines could hit the market, driving down USM prices to the point where the economics no longer hold. The question now is whether this scenario is a realistic concern.

There is broad agreement that a widespread collapse in USM pricing is unlikely, even if teardown volumes rise. Persistent demand for high‑quality, certified material, ongoing supply chain and new‑aircraft delivery constraints, and strong shop‑visit activity across mature fleets continue to absorb most teardown output.

Usov adds that even if more engines come to market, material value will remain uneven, as differences in core configuration, LLP longevity and repairability naturally segment supply and help prevent widespread price erosion.

However, Usov admits that pockets exist where oversupply could temporarily soften values, especially on platforms nearing the end of their operating life or where operators are accelerating retirements, and EirTrade monitors those trends closely to avoid taking positions that do not make economic sense.

Overall, Usov asserts that while pockets of price volatility may emerge, a broad market collapse would require a level of teardown volume and material uniformity that does not exist today. He emphasizes that disciplined purchasing and a diversified portfolio enable EirTrade to stay resilient, even if specific segments face temporary market pressure.

An oversupply scenario is possible, Ansell says, but only in the short term. “The larger risk is not absolute oversupply, but an imbalance between the right material condition and what the operator base actually needs,” he says.

McCarthy also believes a widespread USM price collapse is unlikely. Continued high demand, fleet demographics, sustained shop visits and OEM lead-time pressures ensure most teardown material is absorbed, while industry reliance on USM provides resilience against short-term fluctuations from retirements or improved new-part availability.

Topham of Werner Aero cautions that the market requires constant vigilance. While quality teardown engines continue to attract strong demand, he stresses that this does not translate into universal value across all engines. “Many engines that some claim as assets can often be liabilities in disguise,” he says.