The shorter on-wing engine life of most of the new technology engines continues to frustrate aircraft operations and the record numbers of power plants requiring shop visits earlier than originally promised by the engine OEMs is putting severe pressure on MROs and suppliers. There is now a global shortage of spare engines, increased lead times and repair times for engine shop visits and the cost of engine overhauls and repairs has increased substantially.
As OEMs divert new production engines to existing customers to solve problems, fewer engines are being delivered to airframe manufacturers and are exacerbating production delays.
Commenting on a first quarter earnings call, Air Lease Corporation executive chairman, Steven Udvar-Hazy, said that the production delays were currently 70-75% engine related. “The dilemma we have is that both Boeing and Airbus are increasing production rates on both their single and widebody aircraft. But at the same time, the existing fleet that's out there and flying is requiring more spare engines because the longevity of these new technology engines has not been what we all expected. So the engine manufacturers are caught between having to deliver more engines to Boeing and Airbus and yet they have their airline customers screaming at them to give them more spare support.”
Chief executive John Plueger added that the engine manufacturers need to modify the engines to ensure that on-wing reliability, he also commented that the team would not accept supply chain issues as an excuse for delivery delays. “We expect to be compensated for our late deliveries and we're working through our airframe OEMs just to get that and to continue to get that,” said Plueger on the earnings call.
The one salvation that is maintaining the value of the new engine with these troubled engines on wing is the buoyant demand for aircraft, which is only predicted to grow as passenger numbers increase and production delays are pushed out even further (see OEM delivery delays News article overleaf for more detail).