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Spirit Airlines Grounding Sparks Engine Parts Boom
9 May
Summary
- Spirit's grounding is increasing the supply of near-new A320neo aircraft for parts.
- This disassembly is providing much-needed spare Pratt & Whitney Geared Turbofan engines.
- Leasing rates for GTF engines have remained stable despite the increased supply.
The bankruptcy of U.S. budget carrier Spirit Airlines, which ceased operations on May 1, is providing a vital, albeit temporary, solution to the severe shortage of spare Pratt & Whitney Geared Turbofan (GTF) engines. Hundreds of Airbus A320neo aircraft have been grounded due to long repair times and production issues impacting GTF engine output.
The grounding of Spirit's all-Airbus fleet is leading to the disassembly of near-new A320neo aircraft for parts, particularly their GTF engines. Industry executives note that these engines are being leased to support other grounded aircraft. Despite this increased availability, leasing rates for GTF engines have not decreased, indicating sustained demand.
This trend offers some relief to the supply-demand imbalance affecting the GTF engine market, which powers over 40% of A320neos in service. Companies are actively marketing former Spirit aircraft for teardown, with a significant focus on lucrative engine components, followed by auxiliary power units and landing gear.
