IATP Seeks Engine Pooling Support from Lessors

IATP Seeks Engine Pooling Support from Lessors

Rising Demand and Industry Response

The International Airlines Technical Pool (IATP) has reported strong interest in its newly launched engine pooling service, introduced in March 2024 to assist airlines grappling with persistent engine shortages and supply chain disruptions. The service initially includes a selection of engines such as the CFM International CFM56-5B and -7B, IAE V2500, and General Electric CF6-80C2, CF34, and GE90 models. This initiative is designed to offer airlines enhanced operational flexibility and support amid increasingly constrained market conditions.

Challenges in Expanding the Engine Pool

Despite the positive reception, IATP faces considerable challenges in expanding its engine pool due to ongoing scarcity in the aircraft engine market. Giorgio Pietra, IATP’s CEO, highlighted that since the organization’s last conference in October, member airlines have expressed strong interest in adding CFM International Leap 1A engines to the pool and increasing overall engine availability. However, current supply limitations have made it difficult for members to contribute additional engines.

To overcome these obstacles, IATP is actively seeking partnerships with engine lessors. The organization has already signed an agreement with MTU Maintenance Lease Services and is engaged in discussions with other potential providers. By collaborating with lessors, IATP aims to strengthen its engine inventory and better accommodate the growing demand for pooling services.

Engine Pooling Solutions and Operational Benefits

IATP offers two primary engine pooling options to operators. The first is a guaranteed 24-hour engine availability service, which requires a monthly fee and is provided by the lessor rather than IATP itself. The second is a standard service without guaranteed access. Pietra emphasized that IATP’s role is to facilitate connections between airlines and engine providers rather than directly supplying engines.

While guaranteeing rapid engine availability remains challenging amid ongoing supply chain issues, Pietra expressed optimism that these constraints will ease over time. He noted that as conditions improve, airlines will be better positioned to contribute additional engines to the pool, as has been observed in other IATP programs. He also stressed the importance of airlines completing necessary preparations in advance to fully realize the benefits of the pooling service and to manage any unforeseen issues systematically.

Expanding the Pool and Market Adaptation

Looking forward, IATP is working to broaden its engine pool to include next-generation models. MTU Maintenance Lease Services acquired five Leap 1A engines at the end of 2024, with plans to add another five by March 2025. This expansion reflects the increasing demand for advanced engine types and underscores IATP’s commitment to adapting its offerings to evolving market needs.

Trends in the Leasing Market

The growing demand for engine pooling parallels broader trends in the leasing market, where lessors are responding to airlines’ requirements for both established and next-generation engines. BeauTech, for instance, recently added two Leap 1B engines to its lease portfolio. Tobias Konrad, BeauTech’s chief operating officer, noted that while new-generation engines are highly sought after, their reliability challenges can result in increased downtime. By offering a balanced mix of newer and proven engines, BeauTech aims to provide operators with flexible and resilient solutions amid ongoing supply chain pressures.

As IATP and industry lessors collaborate to address shortages and rising demand, engine pooling is set to become an increasingly critical component in supporting airline operations and maintaining industry stability.