Willis Lease Secures 26-Engine Contract for Air India Express Expansion

Willis Lease Secures 26-Engine Contract for Air India Express Expansion

Strategic Engine Sale and Leaseback Agreement

Willis Lease Finance Corporation (NASDAQ: WLFC) has finalized a significant engine sale and leaseback agreement with Air India Express (AIX), a subsidiary of Air India. The contract covers 26 CFM56-7B engines installed on 13 Boeing 737-800 aircraft, marking a key development in AIX’s ongoing fleet expansion. Under this agreement, the engines will be managed through Willis Lease’s ConstantThrust® program, designed to enhance reliability and reduce costs compared to conventional maintenance approaches.

This deal extends the existing collaboration between Willis Lease and Air India, which began in 2022 with a similar ConstantThrust® program involving 34 CFM56-5B engines powering Air India’s Airbus A320 family. Both initiatives are supported by Willis Lease’s team based in GIFT City, India, reflecting a broader industry trend where airlines increasingly adopt innovative solutions to manage engine maintenance expenses and operational risks.

The ConstantThrust® Program and Its Impact

The ConstantThrust® program enables airlines to exchange engines requiring maintenance with serviceable units from Willis Lease’s inventory, thereby minimizing aircraft downtime and eliminating the unpredictability of major overhaul costs. This model allows carriers such as Air India Express to maintain operational continuity and concentrate on their core business functions.

Aloke Singh, CEO of Air India, emphasized the benefits of the expanded partnership, stating, “WLFC’s ConstantThrust® program has been successful so far for Air India and we are pleased to expand our partnership with WLFC in support of the Air India Express fleet. This agreement allows us to eliminate the uncertainties associated with engine maintenance and mitigate unpredictable costs. WLFC’s ConstantThrust® program will help us improve fleet reliability, reduce cost and optimize cash flows.”

Brian R. Hole, President of Willis Lease Finance Corporation, highlighted the significance of the contract, noting, “We believe Air India Express’ decision to select ConstantThrust® evidences that Air India is realizing value from our ConstantThrust® program and also validates our team’s performance on that program.” Austin C. Willis, CEO of WLFC, added, “We greatly value our long-standing relationship with Air India and are excited to continue providing innovative, programmatic solutions that deliver enhanced flexibility and cost efficiency for Air India Express and our global customers.”

Industry Implications and Market Response

Industry analysts observe that this substantial contract may pose challenges for competitors aiming to secure similar agreements, potentially prompting rival lessors to explore alternative suppliers or renegotiate terms to maintain competitiveness. The announcement has also attracted attention from financial markets, with analysts monitoring potential stock price movements for Willis Lease Finance in light of the expanded partnership.

Willis Lease Finance Corporation specializes in leasing large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to airlines and maintenance providers worldwide. Its integrated services encompass engine and aircraft trading, asset management, and end-of-life solutions through various subsidiaries. As airlines continue to prioritize cost efficiency and operational reliability, programs like ConstantThrust® are expected to play an increasingly central role in fleet management strategies across the aviation industry.