Industry Addendum: Leasing
IBA forecasts engine lease market cannot support near term demand
June 1st 2018
At a May London conference, speakers from the IBA consultancy said the engine lease market will not be able to meet critical demand for spare engines and parts as hundreds of shop visits are ahead for CFM56-7B and 5B engines. Read More »
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The consultancy said “there is very limited availability of spares and unless spare engines are generated by retirements and aircraft teardowns or airline held spare stock that absorbs some of the demand, engine inductions and longer turnaround times will create a logjam”.
Quality engine shops worldwide are edging towards full capacity, IBA said, which will allow little room to cope with the unexpected such as new Airworthiness Directives.
Limited availability of spare parts could mean longer downtime during maintenance and prompt higher lease rates. The problem will ease from 2024 when the numbers of A320ceo and B737NG retiring each year will release engines onto the market for part-out or redeployment, IBA said.
