Jetrader - Autumn 2018 - 43

The march toward
the OEM's dominance
of the aftermarket
continues unabated,
with GE and
Rolls-Royce, through
their respective
leasing arms, easily
heading the market
share for leasing their
own products, while
increasingly developing
portfolios of other
manufacturers' engines.
The spare engine leases for engine types
of their own manufacture are often associated with the various maintenance packages the OEMs offer, which are sometimes
unattractive to third-party lessors.
There have been significant moves
by Rolls-Royce in particular to make
their maintenance packages more lessor
friendly, but the fact remains that many
airline customers sign up for OEM packages involving spare engines without ever
going to a competitive bid. It is obviously difficult for a third party that is not
the design authority to guarantee or at
least limit long-term maintenance costs,
although some independent MROs are having to do so to compete in an increasingly
uneven marketplace. This has resulted in
the further development by those MROs
of packages combining maintenance and,
in some cases, spare engine cover - e.g.
MTU and TEAM  - by completing the
leasing in house and others in collaboration with independent engine lessors
such as ELFC.

Business Integration
Not only have the MROs been busy
extending their business capabilities by
offering integrated suites of products,
but so have many of the lessors, such that
there is now considerable overlap among
them. As my previous article demonstrated, historically there were two quite
distinct types of lessors: those whose

core business was operating leasing and
those for whom it was short-term leasing traditionally linked with greentime
burn off and part out. Both groups of
companies have been moving toward full
market capability; the operating lessors
are doing so because they wish to optimize
use of engines returned from their initial
long-term lease, and for the short-termers,
it's a means of leveraging their expertise
and as a route to obtaining product, which
has become increasingly difficult in this
bull market.

A321P2F

A330-300P2F

Engine Lease Finance's strategy has been
to develop its capabilities to extract use from
its engine assets throughout their lifecycle.
During the past five years, this strategy has
been achieved - firstly with the creation
of a separate division combining short-term
leasing, including AOG response, greentime
burnoff and disposal. The picture was completed in 2017 with the acquisition of a
majority shareholding in the Chicago-based
parts supplier INAV (Inventory Navigators),
who specialize in engine teardown, component refurbishment and supply.

A330-200P2F

A320P2F

WE ARE
FAMILY!

The Airbus Freighter Conversion

CT
CONTA
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1 8 839
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905763_EFW.indd 1

Jetrader * Autumn26/02/18
2018 43
10:50 PM


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Jetrader - Autumn 2018

Table of Contents for the Digital Edition of Jetrader - Autumn 2018

Message from the President: Douglas W. Runte, CFA
Calendar/News
Q&A: Tim Myers, President, Boeing Capital Corporation
Helping Hands
Making (Nearly) Everyone Happy
Business and Pleasure
Home Away From Home: ISTAT’s Farnborough International Airshow Chalet and Reception
Looking Back. Looking Ahead
Q&A: Eduardo Fairen
From the ISTAT Photo Archives: ISTAT EMEA
Aviation History: Northrop’s Flying Wing Bomber – Grandfather of the B-2 Spirit
Aircraft Appraisals: Airbus A220-300/ Embraer E190-E2
From the ISTAT Foundation: The Right Stuff
Advertiser Index
Advertiser.com
Jetrader - Autumn 2018 - Intro
Jetrader - Autumn 2018 - cover1
Jetrader - Autumn 2018 - cover2
Jetrader - Autumn 2018 - 3
Jetrader - Autumn 2018 - 4
Jetrader - Autumn 2018 - 5
Jetrader - Autumn 2018 - 6
Jetrader - Autumn 2018 - Message from the President: Douglas W. Runte, CFA
Jetrader - Autumn 2018 - 8
Jetrader - Autumn 2018 - 9
Jetrader - Autumn 2018 - 10
Jetrader - Autumn 2018 - 11
Jetrader - Autumn 2018 - Calendar/News
Jetrader - Autumn 2018 - 13
Jetrader - Autumn 2018 - Q&A: Tim Myers, President, Boeing Capital Corporation
Jetrader - Autumn 2018 - 15
Jetrader - Autumn 2018 - 16
Jetrader - Autumn 2018 - 17
Jetrader - Autumn 2018 - 18
Jetrader - Autumn 2018 - 19
Jetrader - Autumn 2018 - 20
Jetrader - Autumn 2018 - 21
Jetrader - Autumn 2018 - Helping Hands
Jetrader - Autumn 2018 - 23
Jetrader - Autumn 2018 - Making (Nearly) Everyone Happy
Jetrader - Autumn 2018 - 25
Jetrader - Autumn 2018 - 26
Jetrader - Autumn 2018 - 27
Jetrader - Autumn 2018 - 28
Jetrader - Autumn 2018 - 29
Jetrader - Autumn 2018 - Business and Pleasure
Jetrader - Autumn 2018 - 31
Jetrader - Autumn 2018 - 32
Jetrader - Autumn 2018 - 33
Jetrader - Autumn 2018 - 34
Jetrader - Autumn 2018 - 35
Jetrader - Autumn 2018 - 36
Jetrader - Autumn 2018 - 37
Jetrader - Autumn 2018 - Home Away From Home: ISTAT’s Farnborough International Airshow Chalet and Reception
Jetrader - Autumn 2018 - 39
Jetrader - Autumn 2018 - Looking Back. Looking Ahead
Jetrader - Autumn 2018 - 41
Jetrader - Autumn 2018 - 42
Jetrader - Autumn 2018 - 43
Jetrader - Autumn 2018 - 44
Jetrader - Autumn 2018 - 45
Jetrader - Autumn 2018 - Q&A: Eduardo Fairen
Jetrader - Autumn 2018 - 47
Jetrader - Autumn 2018 - 48
Jetrader - Autumn 2018 - 49
Jetrader - Autumn 2018 - 50
Jetrader - Autumn 2018 - 51
Jetrader - Autumn 2018 - 52
Jetrader - Autumn 2018 - From the ISTAT Photo Archives: ISTAT EMEA
Jetrader - Autumn 2018 - Aviation History: Northrop’s Flying Wing Bomber – Grandfather of the B-2 Spirit
Jetrader - Autumn 2018 - 55
Jetrader - Autumn 2018 - 56
Jetrader - Autumn 2018 - 57
Jetrader - Autumn 2018 - 58
Jetrader - Autumn 2018 - Aircraft Appraisals: Airbus A220-300/ Embraer E190-E2
Jetrader - Autumn 2018 - 60
Jetrader - Autumn 2018 - 61
Jetrader - Autumn 2018 - 62
Jetrader - Autumn 2018 - From the ISTAT Foundation: The Right Stuff
Jetrader - Autumn 2018 - 64
Jetrader - Autumn 2018 - Advertiser Index
Jetrader - Autumn 2018 - Advertiser.com
Jetrader - Autumn 2018 - cover3
Jetrader - Autumn 2018 - cover4
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