With engine values at historic highs and supply still constrained, the aviation industry is facing a complex balancing act. Airlines, lessors, and traders must navigate a market where teardown economics, USM availability, and MRO capacity are all in flux—while also safeguarding long-term residual values. This panel will explore how stakeholders are adapting their strategies to manage risk, optimize returns, and ensure asset longevity in a volatile environment.
- Residual Value Risk: How are current market conditions—elevated pricing, limited green-time engines, and shop visit delays—impacting long-term residual value assumptions?
- Teardown & Part-Out Strategy: What’s driving demand for teardown assets, and how are buyers modeling future value in a competitive market?
- USM Market Trends: How are supply constraints and OEM pricing strategies reshaping the economics of used serviceable material?
- New Tech vs. Old Tech: Are reliability issues with newer engines (e.g., GTF, LEAP) reinforcing the value of legacy platforms? How does this affect long-term fleet planning?
- MRO Bottlenecks: How are shop visit delays and capacity shortages influencing engine lifecycle decisions and asset monetization timelines?
- PMA, STCs & Value Impact: What role do alternative parts and modifications play in the value chain—and how are lessors and airlines managing the associated risks?