USM AJW Parts.jpg

Used Engine Parts In High Demand, Especially Half-Life Parts

More plentiful supplies are likely over a period of several years.

AJW Group is continuing to see high demand for used parts for engine shop visits, says Brendan McIntyre-Read, head of engine material sales. “In particular, half-life parts are in constant demand due to the lack of supply in the market,” the engine exec adds.

Engine material is predominantly sourced from teardowns or from material that has been removed from an engine during a shop visit and then recertified. Securing these used parts reduces costs for shop visits. “Many airlines recognize this and now have OEM service agreements that have new-for-old material supply clauses,” McIntyre-Read says. “The demand to reduce costs during shop visits with the supply of used material is still strong.”

AJW focuses on narrowbodies and sees the highest demand for CFM and IAE products. The part supplier continues to see strong demand for CFM56, -7B and V2500-A5 parts. Because engines are still being built for 8,000 cycles or more, AJW is seeing unprecedented demand for this material. As a result, market value has increased among airlines, MROs and OEMs that are looking to save costs rather than purchase new parts.

One reason for market pressure has been the delayed service entry for new aircraft and engine types. But McIntyre-Read believes that, “until we see the full integration of new fleets into service, airlines will continue to have the need to put legacy engines through shop visits in order to stay in the air.”

That means MROs have had to become more innovative and airlines savvier in order to reduce costs and improve efficiency. Aftermarket specialists like AJW are offering more choices, as teardowns become common.

As more new aircraft types enter the market and others leave service, the market for spare parts will begin to be reshaped. “Over coming years the amount of retired aircraft will increase,” McIntyre-Read notes. More engines will be available for teardown, and more high-demand engine material will be available. On timing, the AJW exes says only, “this is likely to be staggered over the course of several years.”

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