Tobias Konrad is the chief operating officer at BeauTech, an asset lease solutions specialist. Following the recent addition of CFM International Leap 1Bs into BeauTech’s portfolio, Konrad spoke to Aviation Week Network about opportunities for the lease market.
What are your current capabilities for engine services?
Our core capabilities include engine leasing, engine trading, aircraft leasing, finance leases, engine exchanges and managing and financing shop visits for airline customers. We focus on providing flexible and reliable solutions to meet our clients' needs. Our latest additions to the portfolio include two CFM Leap 1Bs.
What factors drove the decision to venture into Leap engines and what services will you provide?
Our decision to venture into the Leap 1A and Leap 1B engine models is influenced by their growing market demand, advanced technology and our close relationship with GE [Aerospace] and CFM [International]. Supporting this product aligns with our commitment to staying at the forefront of industry needs. We specialize in offering flexible solutions and fast response times during AOG situations. We will offer long-term and short-term leasing, sale-and-leasebacks as well as finance leases.
The market is currently favorable for lessors in the Leap segment. What trends are you observing in terms of lease rates versus demand and supply?
We see strong demand for Leap 1As and maintain a positive outlook for Leap 1Bs. While the leasing market is currently favorable for lessors, our approach is to offer competitive rates, guided by the cost of engine acquisition and maintenance. We intentionally avoid increasing rates solely based on high demand or limited supply.
Unlike some practices we have observed with CFM56 engine models, we do not engage in price-gouging. Instead, we focus on building long-term relationships with airlines, ensuring our customers see us as a reliable and fair partner. We believe this strategy positions us for sustainable success in the Leap market.
What are some of the main support and aftermarket services BeauTech plans for the Leap?
BeauTech provides support and aftermarket services for Leap engines to ensure rapid response times and efficient maintenance processes for our operators. We strategically position Leap 1A and Leap 1B engines with full engine build-up kits at major airport hubs around the globe, enabling us to supply spares within 24 hr. and minimize aircraft downtime.
Additionally, our general terms agreements with many major airlines allow us to react swiftly not just operationally, but also from a legal and commercial perspective. To further enhance our offerings, we plan to significantly increase our Leap engine pool, enabling larger fleet support solutions and more extensive engine pooling options. This ensures we are well-prepared to meet the evolving needs of our customers while maintaining efficiency and reliability.
MROs are stretched for capacity. What support are you getting from the engine OEM to meet maintenance requirements that will ensure consistent Leap engine availability?
It is true that MROs are currently stretched for capacity, making it challenging to secure slots for specific engine models. However, at BeauTech, we have leveraged our strong relationships with MROs to ensure that our engines are inducted on time.
We maintain constant communication with these facilities, proactively sharing our needs and repair requirements well in advance. This collaborative approach has allowed us to align our operations with MRO schedules, ensuring consistent availability of Leap, CFM56 and CF34 engines for our customers despite the capacity challenges.
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