Copying and distributing are prohibited without permission of the publisher
KEEPING UP APPEARANCES
01 December 2006
As engine financing becomes more prevalent, so too are maintenance issues. Geoff Hearn looks at what investors need to know.
Read more:
CFM; AeroStrategy; Lufthansa Technik; Pratt & Whitney; Boeing; IBA
In the not too distant past the main involvement that financiers had with engines was trying to find the ones that were missing from their aircraft. Times have changed; engine financing has become big business with many specialist companies involved in the sector.
Engines may have a lower capital cost than airframes, but in terms of the after-market they are big business. According to AeroStrategy, a consultancy that specializes in the maintenance, repair and overhaul (MRO) market, engine maintenance is the largest MRO sector, accounting for 35% of a $39 billion market in 2005. David Stewart, a principal at the company, adds that it is set to grow at a faster rate than any other sector over the next decade.
The nature of engine maintenance has changed as engines have become more sophisticated. The investment in tooling and test equipment required to set up an overhaul shop for a modern...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
