With their supply chains and time-on-wing under pressure, securing new-generation narrowbody engines has been a challenge, so AFI KLM E&M will be pleased to have secured 10 spare CFM Leap 1A and 1B units.
Speaking to Aviation Week Network’s Engine Yearbook late last year, the President of engine lessor ELFC, Richard Hough, noted that demand for spare Leap and Pratt & Whitney geared turbofan (GTF) powerplants was so high that aircraft lessors could make almost as much from removing and leasing the engines of Airbus A320neo and Boeing 737 MAX assets as they could from leasing the aircraft as a whole.
“Lease rates for Pratt & Whitney GTF and CFM Leap engines are running at above $200,000 per month, which is more than double the rates for the previous generation of engines, but one has to consider that these engines cost well in excess of $20 million to purchase as spares,” he said.
“The same discounts that apply when purchasing aircraft do not apply to spare engines, and with the current level of demand there is little or no discount from the stated list price,” added Hough.
However, the market may loosen somewhat this year as engine OEMs ramp up production, with investment firm Jefferies noting “solid new engine growth guidance from both Safran . . . and MTU.”
Safran—one half of the CFM joint venture—has predicted that Leap deliveries will rise 15-20% this year.
Under AFI KLM E&M’s new purchase deal, announced Jan. 9, CFM will deliver the first spare engine this year to support the MRO provider’s Leap Premier MRO airline customers.
“With this expanded engine supply, we can offer even more flexibility and reliability in meeting the needs of airlines operating CFM-powered aircraft around the world,” said Anne Brachet, executive vice president at AFI KLM E&M. “Our customers can rely on us for the best in terms of both engine maintenance expertise and logistical support.”
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