In a recent article for MRO Management, Kevin Rozario hears from experts within the engine leasing space for a first-hand view of the challenges of high demand and tight supply that the market is currently facing. 

Talking to AJW Group Director of Engines, Wasim Akhtar, about these issues, Akhtar states that the OEMs have attributed to the problem that is significantly impacting the availability and delivery schedules of engines. “Due to lack of engine and part supply, operators are increasingly opting to maintain their existing fleets, driving up the demand for engine leasing,” he asserts.  

Akhtar then adds that delays in OEM production have prompted operators to explore alternative solutions such as lease extensions for current engines. “This approach is favoured due to its cost-effectiveness and improved operational efficiency for operators,” he adds. 

Rozario observes that while this trend is boosting MRO business, there are still some concerns. Akhtar agrees that the approach requires extra vigilance – particularly when operators are compelled to extend the service life of engines.  

When asked about lease rates, the AJW Group Director of Engines confirms that he has seen rates returning to pre pandemic levels, with operators opting to extend leases on ageing engine types like the CFM56 and V2500. Akhtar says that “this choice is driven by a combination of economic considerations as older engine types remain reliable and perform well.” 

He adds, “the trend for extending leases on older engines is expected to persist for at least another two years,” and forecasts that engine leasing will experience significant growth during this period. 

“Airlines are opting to lease rather than purchase engines to avoid the associated upfront costs, which subsequently offers them greater flexibility in fleet management and risk mitigation,” he explains. 

“The demand for used engine parts is having a notable impact on the sector as the supply of both lease engines and parts falls short of demand.”  

The consensus among experts is that the industry has proven its resilience and adaptability time and again and always finds new ways to adapt to dynamic market trends.  

AJW's expertise in providing these services positions the company as a dependable partner in helping operators maximise the lifespan of their engines.