Listen in as Aviation Week editors James Pozzi, Jens Flottau and Lee Ann Shay discuss key trends from this week's Engine Leasing, Trading & Finance and Aero-Engines Americas conferences in Fort Worth. Spoiler alert: there are lots of balancing acts..
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Transcript
Lee Ann Shay:
Welcome to the MRO Podcast, recorded in Fort Worth, Texas, where we’re midway through Aviation Week’s co-located Engine Leasing, Trading & Finance and Aero-Engines Americas events. I’m Lee Ann Shay, executive editor for MRO and business aviation. Joining me today are two of my colleagues—James Pozzi, MRO editor for the EMEA region, and Jens Flottau, executive editor for commercial aviation. James and Jens, thanks for being here.
James Pozzi:
Hi, Lee Ann.
Jens Flottau:
Hi, Lee Ann.
Lee Ann Shay:
Over the past two days, we’ve heard a lot of discussions about engines. What stands out to you?
James Pozzi:
Well, first, it goes without saying that this region is extremely active—the world’s largest MRO market, with a huge in-service fleet, new-generation engines coming online, and a robust market for current-generation engines in terms of both operations and maintenance.
On Monday, the first day of our three-day event, we had the Engine Leasing, Trading & Finance conference, which featured some really insightful discussions from engine lessors about current market trends and challenges. One of the standout sessions was the panel you moderated, Lee Ann, on technical capabilities for engine lessors.
Larger lessors with in-house technical divisions are making substantial investments in MRO—whether through strategic partnerships or their own repair facilities. Your panel reflected that shift well, with representatives from GA Telesis, Willis Lease Finance Corp., and FTAI Aviation.
FTAI has been particularly active in expanding its MRO footprint. Last year, they acquired Lockheed Martin’s commercial MRO facility in Montreal, which has a strong focus on the CFM56. They’ve identified a bottleneck in piece-part repairs and are targeting investments there—both at the Montreal facility and in Miami, which they acquired a few years ago for quick-turn engine services. Their operations are heavily centered around the CFM56.
GA Telesis, while primarily a lessor, also maintains a strong MRO presence, with facilities in both Finland and the U.S. Marc Cho, GA Telesis' president of LIFT and chief investment officer, had a great quote about how increasing self-sufficiency in piece-part and component repairs is a key strategic goal. That self-sufficiency is something many lessors are pursuing to gain better oversight and control over their supply chains.
Willis Lease has also been quite active in the aftermarket, particularly with next-generation engine developments. Jens, I know you spoke with Charles Willis in a fireside chat, so I’ll let you share those insights.
Lee Ann Shay:
James, you mentioned Charles Willis, whom Jens spoke with yesterday. Jens, can you share a few highlights?
Jens Flottau:
Sure. First, I’ll note that this is my first Aero-Engines Americas conference, so I’ve been approaching it as an industry outsider. One of my initial observations was just how large this sector is—it’s one thing to know the numbers, but seeing the scale in person really drives it home.
A key word that comes to mind for this industry right now is transition. There’s a major shift happening from legacy engines—the V2500 and CFM56—to new-generation powerplants like the LEAP and GTF. This transition presents significant challenges: capacity planning, investment strategies, staffing, and resource allocation.
Charles Willis touched on this in our fireside chat, particularly the pace of retirements. Aircraft retirements have remained at historically low levels in recent years for well-known reasons. However, one of the big unknowns is just how quickly that trend will shift. Willis predicts that retirements will accelerate faster than many anticipate. If he’s right, the entire industry will have to adjust rapidly to accommodate that shift.
Another area of transition is the role of AI in MRO. Right now, it’s still in its early stages, but there’s enormous potential. Jason Reed of GA Telesis and Mike McBride from Delta shared some compelling examples of how AI could revolutionize predictive maintenance and failure analysis—potentially saving hundreds of millions of dollars if implemented effectively.
Back to Willis—he pioneered engine leasing, and over the years, his company has evolved from a pure-play lessor into a more diversified service provider. His goal is to reach a 50/50 revenue split between leasing and MRO services.
We also touched on M&A trends. Willis believes consolidation is inevitable—barriers to entry are high, costs are increasing, and smaller players may struggle to keep up. While he didn’t explicitly state whether Willis Lease Finance will be active in M&A, he expects the broader market to see significant deal activity.
Lee Ann Shay:
That’s a great point. I’ve been thinking about balance as another key theme—balancing legacy engines like the CFM56 and V2500 with newer platforms like the LEAP and GTF.
Interestingly, there’s been far more discussion about the CFM56 and LEAP than the GTF. That could be because Pratt & Whitney has largely been executing its planned strategy, making it less of an unknown quantity. Meanwhile, CFM just received approval for the LEAP-1A upgrade and is working on the LEAP-1B upgrade, which is expected in Q1.
James, you mentioned how extended lease terms are impacting the aftermarket.
James Pozzi:
Yes—lease extensions are driving heavier work scopes. Airlines are opting for performance restorations and core repairs rather than full overhauls, and turnaround times (TATs) are increasing. Right now, full overhaul TATs are quoted at 75–85 days, with quick turns at 40–50 days—longer than what we’ve seen historically.
There’s also significant demand for used aircraft, which is another challenge. Airlines are emphasizing predictability in lease returns, and AI is being explored for inventory management and predictive maintenance. That’s an area our MRO editors have covered extensively.
Lee Ann Shay:
Absolutely. Parts availability remains a major bottleneck, and the lack of used serviceable material (USM) is compounding the issue. Jens, going back to retirements—Aviation Week data forecasts nearly twice as many retirements in 2025 compared to last year, though still under 1,000 aircraft. Do you think we’ll see a major spike this year?
James Pozzi:
That long-predicted “bow wave” of retirements is coming, but perhaps not this year.
Jens Flottau:
Exactly. If you look at the fleet, it’s clear that retirements will ramp up in the second half of the decade. But in the immediate term, many operators are holding onto aircraft as long as possible. It’s similar to what happened in the cargo conversion market—demand surged, everyone jumped in, and now some may have overbuilt capacity. The same risk exists in engine MRO.
Lee Ann Shay:
That’s an interesting comparison. Speaking of work scopes, I had to do a double take during a panel when Neil Russell from Aero Norway used the term heavy quick turn. I thought I misheard him! It’s a relatively new concept—quick turns are traditionally short-duration shop visits, but now we’re seeing more extensive work scopes, especially on the CFM56. These heavy quick turns can last months rather than days, reflecting how much the landscape is shifting.
James Pozzi:
That ties into what Mike Walsh from BP Aero said—work scopes are becoming more complex and more customized.
Lee Ann Shay:
Exactly. One last data point: Aviation Week forecasts that the CFM56 will drive the most MRO value in 2025—$3.6 billion in engine MRO demand—followed by the CF6 at $2.6 billion and the V2500 at $1.3 billion. When I asked my panelists whether 2025 would be the peak for CFM56 shop visits, they all said no.
James Pozzi:
The consensus is that peak demand is still ahead.
Lee Ann Shay:
Just like retirements—the bow wave isn’t here yet. Stay tuned!
Jens and James, thanks for your insights. That’s a wrap for this episode of the MRO Podcast from Fort Worth. Be sure to subscribe, and if you’re listening on Apple Podcasts, please consider leaving us a star rating or review. Thanks for listening!
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