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Shane Hennessy, Director of Origination & Trading - EMEA at EirTrade Aviation, shares his insights on the engine leasing market.
EirTrade Director of Origination & Trading – EMEA, Shane Hennessy, recently shared insights on engine leasing demand with Freighter Trends.
In his interview, Hennessy assesses the current engine leasing market, which is characterised by strong demand across current-production and post-production narrow and widebody engines.
“Against a backdrop of MRO bottlenecks, material constraints and entry-into-service issues, operators are aiming to get the most out of their dependable CFM56-5B-7B and V2500-A5 powered fleets due to their more predictable maintenance profiles,” he explains.
“Up to 90% of an aircraft’s value can reside in the engines, assuming full-life condition on both, so part-out economics have often trumped whole-aircraft remarketing as a result. This has led to under-six-year-old A320 NEOs and 737 MAXs being torn down to deploy engines as standalone spares. If oil prices, and therefore jet fuel prices, stay elevated, and if more airline failures occur, we can expect further part-outs, which will lead to an increase in spare engine supply and a potential softening of market lease rates.”
Read the full article here.
Article courtesy of Freighter Trends.