The deal which includes the sale of two CFM56-7B engines to CFM Materials.

The move aligns with Sanad’s leasing division’s strategy, initiated last year, to optimise existing assets and enhance the Sanad maintenance, repair and overhaul (MRO) division.

Kashish Kohli, Group chief financial officer and SVP of the Leasing Division at Sanad, expressed satisfaction, said: “We are pleased to announce the successful sale of two CFM56 engines to CFM Materials. This transaction reaffirms our commitment to optimising our portfolio by collaborating with industry leaders like CFM Materials.”

The joint statement follows Turkish Airlines order for 80 Airbus A350 aircraft. That deal makes Turkish Airlines the world’s largest operator of the Trent XWB, which powers the Airbus A350, and included an order for 120 Trent XWB-84 engines and 40 Trent XWB-97 engines, excluding options and spares.

As part of Rolls-Royce’s long-term strategy and commitment to Türkiye, the company is exploring the implementation of a number of industrial initiatives. These include the potential development of a competitive Maintenance, Repair and Overhaul (MRO) capability and further supply chain sourcing. Rolls-Royce estimates that these projects could have a significant positive impact on the Turkish economy over the coming years.

Tufan Erginbilgic, CEO, Rolls-Royce, said: Türkiye is a strategically important market for Rolls-Royce across our business. We are very pleased with the confidence that Turkish Airlines has placed in our Trent XWB engines. We now look forward to working with Turkish Airlines and our partners to use our extensive aerospace engineering experience to benefit the Turkish economy, grow the country’s skills base and expand its role in the energy transition. I am personally very energised by the strengthening relationship between our great company, Turkish Airlines and the Republic of Türkiye.”

Turkish Airlines Chairman of the Board and the Executive Committee, Prof. Ahmet Bolat added: Over the past 15 years, Rolls-Royce has been a significant partner for Turkish Airlines. With this latest acquisition, we are poised to become the largest operator of XWB engines. This acquisition is a key milestone in our partnership, offering a mutually beneficial strategy for Rolls-Royce and Türkiye. As part of this strategy, we have agreed to establish a 'Steering Committee.' Through this committee, designated projects will be executed based on their performance, competitiveness, and quality criteria.

“The remarkable growth of the Turkish aviation industry in the last two decades positions this committee to elevate the ecosystem to new heights and provide greater value-added contributions to not only Türkiye but also the global aviation industry. Through this initiative, we aim to create a sustainable and mutually beneficial environment for both the Turkish aviation industry and Rolls-Royce."

The company operates across 500 locations worldwide, serving some of the largest and most reputable airlines. In 2017, it opened its Temperature Control Competence Center located in Abu Dhabi, where a specialised team ensures the efficient global management of temperature- controlled containers.

“Over the past two decades, Jettainer has transformed from a modest operator into a leader in the industry, we extend our gratitude to our customers, partners, and employees for their unwavering support and dedication,” stated Thomas Sonntag, CEO of Jettainer. “This milestone underscores the exceptional quality of our services and the innovative strength of our team."

MEPC is the prime contractor of the Saudi Ministry of Defense for F100 engine sustainment services. The maintenance contract, valued at $65.8 million, supplies spare parts and engine services in support of the Royal Saudi Air Force’s (RSAF) F-15 Eagles.

"This contract marks a transition to a more proactive and comprehensive sustainment solution that offers the Royal Saudi Air Force end-to-end efficiencies and greater affordability,” said Josh Goodman, senior director of the F100 Program at Pratt & Whitney. “Pratt & Whitney will assume more responsibility for optimising fleet readiness, allowing the customer to focus on critical missions.”

The aviation market intelligence and advisory company analysis shows that engine leasing activity has grown significantly with operators now favouring lease extensions to secure lift. 

In its recent webinar on the engine market, experts from IBA, Mike Yeomans, Director – Valuations and Consulting, Kane Ray, Head of General Aviation and Aftermarket, and Jamie Davey, Manager – Engines and Parts, discussed and explained the trends.

As the industry continues to cope with supply chain issues and a shortage of spare parts and raw materials, IBA is holding firm to its view that there will be around 2,500 shop visits in 2024 for CFM56-5B, CFM56-7B, V2500-A5, CFM LEAP-1A, CFM LEAP-1B, and PW1100G engines (excluding additional shop visits driven by GTF engine issues). IBA predicts that this will be followed by a significant jump to 3,500 visits in 2025 – representing a 40 per cent increase.

However, between 2025 and 2027, the situation should come to a slight plateau at around 3,800 visits annually, before peaking at over 4,000 visits in 2028. With the continued staffing shortages in MRO facilities and OEMs facing supply chain issues and scarce shop visit slots, operators will continue to extend current engine leases to combat shop visit turnaround times and uncertainty in new generation engine reliability. 

While quality issues still plague the new generation narrowbody fleets, market values remain stable. Driven by shop visit events, the greatest market value movements can be seen in the current generation fleet. The CFM56-7B is seeing the highest market value change with an increase of around 20 per cent from 2023 to 2024. As a result of GTF groundings and growing shop visit activity, A320ceo engine values have also increased. 

As the engine market recovers, lease rates for current and new narrowbody engines have risen above pre-pandemic levels. Due to smaller supply and higher demand, V2500-A5 lease rates are slightly higher than CFM56-5B in 2024. However, CFM56-7B monthly lease rates have grown the most from about $75,000 in 2019 to $100,000 in 2024. In the new narrowbody engine leasing space, A320neo engine-related groundings have led to increases in monthly lease rates with the LEAP-1A26 climbing from a value of $110,000 in 2023 to above $125,000 in 2024.

Lease rate increases can also be attributed to the rise in engine and aircraft lease extensions as the latter contributes to reduction of spare engine supply in the market. As extensions help avoid transition costs, they have become the most cost-effective option for lessors.

While the freighter market remains strong - demand has peaked. However, ideal widebody freighter conversion candidates such as the A330-300 and 777-300ER are surging in passenger demand driven by delays to new aircraft deliveries. Despite the rising engine values for New Generation Widebody Engines, the relationship between market values and base values have steadied with changes at barely 5 per cent.

With a shortage of spare parts and long turnaround times in shops, turboprop engines have experienced heightened demand. IBA has recorded market value increases to the popular PW127M and PW150A variants, although the trend is applicable to other PW120 engine family variants. Whilst PW1500G values have been adjusted to align better with base value, GTF issues will still affect the fleet. For mature regional jet engines like the CF34-8E, market values are stable. The CF24-8E and CF34-10E engine markets have had indications of demand increases and lease rate rises as Embraer E190 family lease extensions grow and, most importantly, signal future demand for engines.  

The agreement was confirmed by AFI KLM E&M and Ethiopian Airlines during the MRO Africa 2024 in Addis Ababa.

Under the agreement, AFI KLM E&M will provide Ethiopian Airlines with comprehensive coverage of all major components, including rotable spares and component repairs support for their 777 fleet, which includes the 777-200LR, 777-300ER, and 777F.

With this programme in place, Ethiopian Airlines can focus on providing its customers with safe and reliable air travel, while reducing its maintenance costs and improving its operational efficiency.

“We are delighted to have signed this component support program for our 777 fleet with Air France Industries KLM Engineering & Maintenance”, said Mesfin Tasew, Group chief executive officer at Ethiopian Airlines. "This collaboration ensures adherence to the utmost safety and reliability standards for our clientele. We are dedicated to enhancing global aviation safety, efficiency, and sustainable global aviation ecosystem through strategic partnerships." 

Anne Brachet, executive vice president of Air France - KLM Engineering & Maintenance said: “It is with great honour that we have been selected by Ethiopian Airlines, a major African operator. We embark on a journey of reliability and comprehensive component support services for their entire 777 fleet, fostering operational excellence in the skies.” 

Géry Mortreux, executive vice president of Air France Industries said: “Our collaboration with Ethiopian Airlines underscores our dedication to quality and innovation. With the introduction of a comprehensive component support programme for the 777 fleet, we are not only ensuring seamless operations, but also reinforcing our position as a trusted partner in the aviation sector.”

It was on this day in 1951, barely four years after India’s independence, that Air Works commenced its pioneering business under its co-founders, aircraft engineers BG Menon and PS Menon, at the Mumbai airport.

Over the past seven decades, the company has grown into a business with one of the widest portfolios of customers and certifications in the industry. It holds accreditation to maintain more than 50 types of aircraft across commercial, business, and defence fleets, together with multiple maintenance facilities and a pan-India support network of more than 50 locations in 27 cities.

The company marked the occasion with a multi-city event that connected its offices live for the first time. Celebrations included extensive leadership engagement and a rewards and recognition for key performers and contributors.

Commenting on the historic milestone, D Anand Bhaskar, group chief executive and managing director, described a feeling of “immense pride” to be leading such an organisation. He said: “Air Works is not only regarded as an MRO institution and a reputed industry benchmark, but it has also become a manifestation of Atmanirbhar Bharat all around us.

“Much as we are enjoying and celebrating this milestone, we have already begun looking ahead eagerly and excitedly, towards the coming years when we turn 75.

“I thank our customers who have given us their trust and opportunities to assure their flights as well as greet and congratulate all our employees for their hard work, steadfastness, and innovation that has kept our engineering flag flying high over decades.”

Among its milestones, Air Works Group was India’s first privately owned, independent MRO to create an EASA-certified maintenance facility for airlines in India at Hosur, Tamil Nadu, in 2008-9, after realising the need and advantages of having an indigenous facility.

Since then, the company has expanded its maintenance capacities significantly, inaugurating a second, state-of-the-art maintenance facility at the Cochin International Airport, for both business and commercial aircraft, designed to offer added flexibility to customers, together with another dedicated facility for maintenance of large business jets such as the Embraer ERJ-135.

The company has undertaken more than 500 C-checks to date, supported by in-house EASA and DGCA-certified shops to provide comprehensive structure and composite repairs, battery support, cabin interiors, component repairs, heat exchangers, painting, and more.

This collaboration marks the commencement of the second cohort of the Sanad Future Leaders Program, aimed at advancing the next generation of national leaders to drive the sustainable growth of aviation Maintenance, Repair, and Overhaul (MRO).

This new phase underscores Sanad’s continued commitment to talent development, building on the success of the inaugural Sanad Future Leaders Program conducted in 2023 in partnership with a prominent European business school, which resulted in the successful graduation of five national employees in the aviation sector.

Under this new partnership, Embry-Riddle Aeronautical University Worldwide will curate a leadership development program for Sanad employees. Eight talents demonstrating leadership skills - a quarter of which are females - from Human Resources (HR), engineering, operations and quality will embark on a new journey, gaining essential skills to deliver exceptional services to global OEMs and local and international airlines.

The programme, which spans one year, will enable participants to engage in immersive and practical sessions both at Embry-Riddle Aeronautical University's campus in Florida, United States of America (USA), and in Abu Dhabi, delving into subjects including project management, business communication, strategic development, and financial solutions. The program enables access to industry experiences that have the potential to elevate the expertise of Sanad’s aviation MRO experts, emphasising innovation, transformative strategies, and exposure to global best practices.

Mansoor Janahi, managing director and Group CEO of Sanad, commented: “Our collaboration with Embry-Riddle Aeronautical University signifies a pivotal step forward in nurturing talent and leadership within Abu Dhabi's aerospace industry. This partnership drives innovation and excellence, essential for navigating the aviation sector's robust potential. Equipping and empowering our talent to seize opportunities and drive sustainable growth ensures we meet market demands while delivering service excellence.”

Ebraheem Budebs, Group Head of Human Resources at Sanad, said: “The Sanad Future Leaders Program is pivotal for our workforce's professional growth, focusing on managerial and leadership skills. Teaming up with Embry-Riddle Aeronautical University for the second cohort elevates our technical staff, exposing them to global experts and integrating academic-practical knowledge for aviation leadership excellence.”

John Watret, Ph.D. Chancellor, Embry-Riddle Aeronautical University Worldwide, added: “Our collaboration with Sanad, a leading independent Aviation MRO company, reinforces our dedication to the future growth of aviation. With the industry evolving rapidly, the Sanad Future Leaders Program plays a vital role in keeping Sanad's top talent agile and ready to lead in delivering outstanding service within the dynamic global aviation sector.”