Private Jet Owners Lease Engines Amid Ongoing Supply Delays

Some private jet owners are turning supply chain challenges into an opportunity by leasing their jet engines to other aircraft operators facing long repair delays. As engine maintenance turnaround times continue to stretch due to post-pandemic labor shortages and parts supply disruptions, a new niche market is emerging in the business aviation sector.

Since the COVID-19 pandemic, the aerospace industry has struggled with shortages in labor, parts, and maintenance capacity. These issues have significantly delayed the delivery and repair timelines for both commercial and private aircraft engines. As a result, private jet owners—especially those with highly customized aircraft interiors featuring luxury touches like gold fixtures and in-flight cinemas—are choosing to keep their aircraft while temporarily leasing out the engines.

“Wealthy families are now making a profit on assets that are usually depreciating liabilities,” said Laura Uberoi, head of private wealth finance at Addleshaw Goddard. “It’s the first time in my career I’ve seen families turning a profit on their private jets.”

Leasing a mid-size jet engine for just a few days can cost as much as $50,000, and the process of removing and replacing an engine can be completed quickly—sometimes overnight. Although the practice was rare in the past, Uberoi noted that it has become more common over the last five to eight years as financial incentives have made it increasingly viable.

According to Kevin Michaels, managing director of AeroDynamic Advisory, there is a well-known supply issue affecting small propulsion engines. “Turnaround times for engine maintenance are now averaging four to six months, and in some cases even stretching to 10 months, compared to a typical two to three months,” he said. This has increased demand for exchange engines.

Business aviation operators usually run small fleets with limited spare engines on hand, making them especially vulnerable to maintenance delays. The situation is being exacerbated by a surge in business jet activity. “The number of business aviation flights is up more than 30% compared to pre-COVID levels,” Michaels said, noting that manufacturers like Pratt & Whitney, Rolls-Royce, and Honeywell, the leading suppliers of business jet engines, are still working to scale their production and service capacities.

Daniel Hall, senior valuation consultant at Cirium Ascend Consultancy, pointed out that private aviation is grappling with the same constraints as commercial airlines: stretched supply chains, parts shortages, and limited hangar space. Additionally, a declining number of aviation maintenance professionals is compounding the issue. “It’s a sector that young people are no longer entering in sufficient numbers,” he warned.

As supply pressures continue, leasing jet engines may remain a profitable stopgap for private jet owners—and a costly necessity for those stuck in the long queue for engine repairs.

Related news: https://airguide.info/category/air-travel-business/business-aviation/


Sources: AirGuide Business airguide.info, bing.com, ft.com