Airlines of the CIS and the Baltic States Will Spend $160 Million for Spare Engines Short-term Leasing Until 2014

Avia Solutions Group estimated, that the number of engines on aircraft Airbus 320s and Boeing 737s, operated in the CIS and the Baltic states, amounted to 858 units (since the end 2010). The most popular engines models, which are installed on these aircraft, are CFM56-3, CFM56-5A, CFM56-5B, CFM56-7B, V2500-A1 and V2500-A5. It is noteworthy, that the older generation of engines makes up the majority of motor fleet operated in the region: for example, CFM56-3 engines (about 42%) and the CFM56-5A (about 9.5%) makes almost 52% of the park.

According to the forecasts of Avia Solutions Group experts, in 2011-2013, the major part (in absolute terms) of repair will be held on mature engines. For example, intensive type of engine CFM56-3 repair is likely to reach 44% of heavy repairs of engines stored in these types of aircraft and CFM56-5A - 15%. At the same time, an advanced generation of engines CFM56-5B/7B will make a greater contribution to the overall sphere of the heavy repair of engines in the region (about 34% of the total number of heavy repairs in this category of engines).

According to the experts of Avia Solutions Group, CFM56-5B/7B engines will make the greatest contribution to the cost of flights on short-term leasing of replacement engines in the CIS and the Baltic states in 2011-2013. It is noticed, that 47% of the total cost structure of airline cost in the short-term leasing of spare engines account for engines of considered aircraft families. In this case, only 3-5% of airlines in the region make a solution to replace the engines during engines overhaul. At the same time, the number of spare engines, especially new generation, available for short-term lease on the market is extremely limited, and the spare engines is typically needed for 3-4 months. According to experts, airlines in the region will spend about $ 160 millions for spare engine short-term leasing.

To avoid possible delays and AOG due to lack of spare engines and reduce costs of supporting heavy SV with spare engines, Avia Solutions Group experts recommended to consider several options, such as stagger heavy shop visits schedule to optimize removal dates, start search of spare engines in advance to have enough time to find optimal technical and financial conditions, consider an options of purchasing spare engines on the market or taking part in pool systems in co-operation with MRO-players or another airlines or preparation to heavy shop visits in advance – selection of MRO-partner, negotiation the optimal TAT, workscope approval, LLP build standard determination and purchasing needed material. These steps will allow airlines to save money and avoid long downtime of aircraft.

About Avia Solutions Group

Avia Solutions Group is a leading integrated aviation solutions provider in Eastern Europe, offering aircraft repair and maintenance, aviation training, airport ground handling and refueling, charter and ASCMI flight, as well as business jet maintenance services. Companies in Avia Solutions Group operate across European, Russian and CIS markets. Avia Solutions Group is listed on the Warsaw Stock Exchange.

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