Demand for CFM International Leap leases is growing significantly.
Since rolling out a new engine pooling service last year, the International Airlines Technical Pool reports positive interest in the program. But as demand rises, members of the group are seeking additional sources of engine supply.
The International Airlines Technical Pool (IATP) officially launched its engine pool program in March 2024 in response to reduced engine availability driven by supply chain constrictions and to support airlines with an active engine pooling service. The program launched with engines including the CFM International CFM56-5B and -7B, IAE V2500, and General Electric CF6-80C2, CF34 and GE90, as well as relevant engine stands.
“Since our last conference in October, members are asking about adding [CFM International] Leap 1As to the pool and the possibilities for IATP members to provide more engines,” Giorgio Pietra, IATP president, tells Aviation Week Network.
However, he admits that IATP members face difficulties with the provision of engines to the pool because of current shortages in the aircraft engines market. In response, IATP has turned to lessors.
“We have signed an agreement with MTU Maintenance Lease Services and we are in talks with other potential providers,” Pietra says.
The ongoing global supply chain conundrums have led to problems in upholding adequate inventory levels to meet demand in other industry pooling services. However, Pietra reckons the constraints currently affecting the engine supply chain will eventually ease, allowing IATP airlines to provide engines to the pool successfully, as achieved in other sections of IATP’s pooling programs.
Currently, operators have the choice of two engine pooling solutions: Having one or several engines with guaranteed availability within 24 hr., subject to a monthly fee, or a service provision without the assurance in availability.
Providing guarantees can be baffling, especially in times of supply chain complications, but Pietra notes that the 24-hr. availability pledge is provided by the lessor and not by IATP, should the pool participant decide to sign up for such a service.
“We only provide the platform connecting airlines with engine providers,” Pietra says. Additionally, he says the prospect for 24-hr. engine availability has been a significant appeal of the program and the benefits will trickle in, assuming the airline completes all the required steps in advance. Also, he says any unpredictable issues that might arise can be addressed in an organized manner.
In terms of Leap 1A entry, and according to IATP, five units were procured by MTU at the end of 2024 and an additional five will be made available by March 2025.
In unrelated developments, other lessors are responding to demand for leases of next-generation engine platforms such as the Leap. For instance, BeauTech recently added two Leap 1Bs to its lease portfolio, influenced by their growing market demand
Tobias Konrad, chief operating officer at BeauTech, says the active market for leasing Leap engines reflects the strong demand for advanced, efficient models. “However, we recognize that the challenges with the reliability of newer generation engines could lead to increased downtime and operational disruptions for operators,” he says.
Konrad believes the demand for spare engine support will grow significantly over the next few years. To address this, BeauTech is providing tailored solutions aimed at mitigating these operational risks.
“Our services, such as engine exchanges and lease flexibility, are designed to ensure operators maintain fleet readiness even during unexpected events,” says Konrad.
Additionally, he believes BeauTech’s close partnership with the OEM allows it to stay informed about technical updates and enhancements and adapt its offerings.
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