DAS 2025 Conference Overview

Fuel Exhaustion Incident Highlights Risks of Incorrect Fuel Selector Installation A recent accident involving a Cessna 172 near Terrell, Texas, has brought renewed attention to the dangers posed by fuel exhaustion linked to improper fuel selector installation. The incident underscores significant safety and operational challenges within the aviation industry. Sequence of Events Leading to the Accident The pilot departed Arlington Municipal Airport (KGKY) after refueling with 12.75 gallons of 100LL aviation fuel, reporting that both wing tanks were “topped off.” The flight was intended to build flight hours, with planned stops at East Texas Regional Airport (KGGG) and Terrell Municipal Airport (KTRL). Upon landing at KGGG and subsequently at KTRL, the pilot attempted to refuel at Terrell but discovered the fuel pumps were “out of order.” Notably, KTRL does not offer self-service fueling; all refueling is conducted by a technician using a fuel truck, with after-hours service available only by prior arrangement—a request that was not made on the night of the accident. Using a fuel measurement stick, the pilot estimated approximately four gallons remained in the right tank and twelve gallons in the left. Choosing to proceed to Mesquite Metro Airport (KHQZ) for refueling, the pilot observed a “rough” engine idle before takeoff but decided to continue after the engine appeared to stabilize at higher throttle settings. Shortly after departing Runway 18 at KTRL, at an altitude of roughly 400 to 450 feet above ground level, the engine lost all power. Although the pilot briefly restarted the engine, it failed again, necessitating an emergency landing in a nearby field. The aircraft sustained substantial damage, but both occupants escaped with only minor injuries. Investigation Findings and Industry Implications Post-accident examination revealed approximately two gallons of fuel remaining in the left tank and a mere quarter gallon in the right. The fuel selector was positioned on “both,” and no external fuel leaks were detected. The pilot reported observing a “steady stream” of fuel from the left side after landing. These findings suggest that incorrect fuel selector installation and fuel management errors contributed directly to the engine failure. This incident highlights the critical safety risks and operational disruptions that can arise from improper fuel system installation and inadequate fuel management. Beyond the immediate threat to life, such events impose significant financial burdens on operators. In response, the aviation sector is experiencing heightened scrutiny of safety protocols, with insurance providers reportedly increasing premiums for companies engaged in aviation and transportation. Competitors within the industry are accelerating innovation in fuel management technologies and reinforcing quality control measures to mitigate the risk of similar occurrences. These efforts coincide with ongoing energy reforms that are already exerting pressure on profit margins, further challenging resources allocated to fuel management and safety enhancements. The accident serves as a stark reminder of the essential need for correct fuel system installation, comprehensive preflight inspections, and strict adherence to fueling procedures to maintain flight safety and operational integrity.

The Growing Role of eVTOL Aircraft Electric vertical take-off and landing (eVTOL) aircraft, powered by advancements in battery technology, are rapidly reshaping the future of urban air mobility. These aircraft, which share the vertical take-off, hovering, and landing capabilities of helicopters, have become increasingly practical for short-range air taxi services. Recent improvements in battery energy density now enable eVTOLs to cover distances ranging from 32 to 80 kilometers, making them a viable option for point-to-point urban and regional travel. Expanding Market Demand and Industry Developments The demand for eVTOL air taxis has surged since the early 2020s, driven primarily by growing urban congestion and the need for faster, more direct transportation options. Major airlines are actively pursuing opportunities to connect key international airports such as London Heathrow, New York JFK, and Paris Charles de Gaulle with nearby regional cities. In March 2025, Virgin Atlantic announced a strategic partnership with Joby Aviation to offer air taxi services linking regional cities to major UK hubs including Heathrow and Manchester airports. This momentum was further underscored in August 2025 when Joby Aviation completed the first eVTOL air taxi flight within US Federal Aviation Authority (FAA) controlled airspace, operating between Marina and Monterey airports in California. By December, Vertical Aerospace unveiled plans to launch the United Kingdom’s first eVTOL air taxi service by 2029, proposing routes that would connect Canary Wharf with Heathrow, Gatwick, Oxford, and Cambridge. The sector’s rapid growth has attracted substantial investment and fostered a competitive environment. Alongside Joby Aviation, companies such as Archer Aviation, Vertical Aerospace, Beta Technologies, and Wisk are advancing their own eVTOL projects. Market confidence is reflected in the formation of partnerships and the development of dedicated vertiport networks, with Joby Aviation’s proposals gaining particular traction. Interest is also expanding beyond traditional markets, with the Gulf region emerging as a notable area for state-funded infrastructure investments aimed at supporting widespread eVTOL adoption. Regulatory and Infrastructure Challenges Despite the optimism surrounding eVTOL technology, the industry faces significant regulatory and infrastructural challenges. The FAA’s certification process for eVTOL aircraft remains ongoing, while the UK Civil Aviation Authority (CAA) is working toward establishing a comprehensive regulatory framework expected by 2028. In September 2025, the UK CAA published the eVTOL Delivery Model, which outlines key objectives including the establishment of agreed type classifications, the introduction of new and amended legislation governing flight operations and pilot licensing, updated guidance protocols, and enhanced systems for processing license applications and safety reports. Infrastructure development is critical to the success of eVTOL services, particularly the creation of vertiports and their integration with existing transportation networks. In the near term, eVTOL air taxi services are anticipated to primarily serve high-net-worth individuals, as affordability for the broader public remains a challenge. This emerging market dynamic could disrupt traditional charter flight providers and executive jet manufacturers, given eVTOLs’ potential for significantly lower carbon emissions and reduced operating costs. While the prospect of fully autonomous eVTOL operations remains under discussion, the immediate priorities for the sector are regulatory approval, infrastructure rollout, and market expansion. As competition intensifies and investment continues to grow, eVTOL aircraft are positioned to assume an increasingly prominent role in the future of urban and regional mobility.

Joby Aviation Receives First of Two Advanced Flight Simulators from CAE Milestone in Pilot Training and FAA Certification Joby Aviation, Inc. (NYSE: JOBY) has taken delivery of the first of two advanced flight simulators developed in collaboration with CAE (NYSE: CAE) (TSX: CAE), marking a significant advancement in the company’s efforts to secure Federal Aviation Administration (FAA) certification for its S4 electric vertical take-off and landing (eVTOL) air taxi. These simulators are integral to Joby’s pilot training program and are expected to expedite the company’s transition into commercial service. The initial simulator, a fixed-base training device, is scheduled for installation this month at Joby’s pilot training facility in Marina, California. A second, full-motion simulator is anticipated to arrive later this year. Together, these units will have the capacity to train up to 250 pilots annually, a critical component as Joby prepares for its inaugural commercial flights planned for later in 2024. Bonny Simi, President of Operations at Joby, emphasized the importance of the simulators in the FAA certification process, noting that they are being delivered on schedule to support pilot training ahead of the company’s commercial launch. The first simulator is expected to achieve certification as a Level 7 Flight Training Device, while the second will meet the standards of a Level C Full Flight Simulator. Advanced Technology and Development Both simulators incorporate CAE’s Prodigy Image Generator, which utilizes Epic Games’ Unreal Engine to render highly detailed three-dimensional urban environments with a 300-by-130-degree field of view. The systems also simulate real-world flight conditions through integrated audio cues, turbulence, and vibration. Development of the simulators began in 2022, with Joby conducting component and software testing at facilities in California and Costa Rica. The delivery of these simulators represents a crucial step not only for regulatory approval but also for scaling Joby’s operational capacity. The company plans to double its U.S. manufacturing output by 2027, reflecting its commitment to meeting growing demand and regulatory requirements. Market analysts have responded positively, projecting substantial growth for Joby within the advanced air mobility sector by 2026. Nonetheless, the company continues to face challenges, including the demanding FAA certification process and the necessity for extensive pilot training. Competitors are expected to respond by investing in simulator technologies and expanding production to maintain competitiveness. CAE’s Expanding Role in Aviation Training CAE, with a market capitalization of $10.25 billion and a stock increase exceeding 34% over the past year, is broadening its footprint in both civil and defense aviation training. Alexandre Prévost, President of Civil Aviation at CAE, stated that the simulators “set a new benchmark for training infrastructure in urban air mobility.” In addition to its partnership with Joby, CAE recently reported strong financial results for the second quarter of 2025, surpassing market expectations with adjusted earnings per share of $0.23 and revenue of $1.24 billion. The company also secured a $270 million CAD contract to deliver the Future Air Mission Training System for the Royal Australian Air Force and entered into a global cooperation agreement with Saab for training and simulation related to the GlobalEye Airborne Early Warning and Control aircraft. Joby Aviation aims to operate its own air taxi service while also selling aircraft to other operators, positioning itself as a leader in the emerging electric air taxi market. The delivery of these advanced simulators marks a pivotal step in Joby’s progression toward commercial operations and industry leadership.

New Aviation Fund Manager Secures $1.6 Billion for Engine Deals Willis Lease Finance Corporation (NASDAQ: WLFC), a prominent lessor of commercial aircraft engines and provider of global aviation services, has announced the establishment of Willis Aviation Capital (WAC), a new asset management division dedicated to overseeing third-party aviation assets and capital through discretionary funds. This strategic initiative significantly broadens WLFC’s asset management capabilities, with WAC successfully securing $1.6 billion in capital commitments from major institutional investors to support engine transactions. Strategic Partnerships and Leadership WAC’s initial capital base comprises a $1 billion leasing partnership with Blackstone Credit & Insurance, complemented by up to $600 million in credit facilities from Liberty Mutual Investments. These partnerships will be managed collaboratively by WAC, alongside the supervision of WLFC’s existing joint ventures with Mitsui & Co. and China Aviation Supplies Company, as well as select third-party aviation assets in which WLFC holds no equity interest. The new platform is designed to generate recurring management fees, carried interest, and servicing revenues, aligning with WLFC’s broader strategy to deleverage its balance sheet and enhance shareholder value. Austin C. Willis, Chief Executive Officer of WLFC, emphasized that WAC aims to deliver attractive returns by leveraging the company’s industry-leading leasing and services platform. Brian R. Hole, who joined WLFC in 2014 and has served as President since 2016, has been appointed Global Head of Managed Funds and Credit to lead WAC. He will oversee the expansion of managed funds and credit strategies. Dan Coulcher, formerly Chief Commercial Officer for WLFC in Europe, the Middle East, and Africa, has been named Senior Vice President of Joint Ventures, reporting directly to Hole. Market Context and Industry Trends The launch of WAC occurs amid a dynamic and highly competitive aviation market. Demand for commercial jet engines and aftermarket services remains strong, as reflected in the recent surge in GE Aerospace’s stock price. GE Aerospace continues to address persistent supply chain challenges, a hurdle also faced by new entrants like WAC as they deploy capital for engine acquisitions. Meanwhile, industry competitors are intensifying their efforts; Boeing recently secured a $2 billion engine replacement contract, underscoring the sector’s focus on maintaining and upgrading engine technology. Broader aerospace and defense investment trends further contextualize WAC’s emergence. The European Union’s recent allocation of a €1 billion defense fund for 2026, with a significant portion dedicated to hypersonic defense systems, highlights the growing strategic importance of advanced propulsion and engine technologies across both commercial and defense sectors. Business Model and Growth Prospects WAC’s structure is designed to support WLFC’s return profile through durable income streams and recurring revenues derived from institutional funds, joint ventures, and select aviation assets. The platform aims to increase the volume of aviation assets serviced across WLFC’s operating and joint venture businesses, encompassing engine materials, maintenance, repair and overhaul (MRO), airframe maintenance, consulting, and engine testing. Additionally, WAC seeks to enhance transaction scale, enabling more programmatic investments and greater diversification among lessees. Brian R. Hole expressed enthusiasm about the launch, stating, “We are excited to officially launch Willis Aviation Capital with two great partners in Blackstone and Liberty Mutual Investments. This new platform allows us to leverage our team’s deep experience as an asset manager on a much larger scale, positioning us to capture incremental demand for engine leasing, lending, maintenance services, and programs.” Willis Lease Finance Corporation continues to lease large and regional spare commercial aircraft engines, auxiliary power units, and aircraft to airlines, engine manufacturers, and MRO providers worldwide, reinforcing its position as a key player in the global aviation industry.

SkyWest Expands Maintenance Operations in Salina SkyWest Airlines has announced the establishment of a new aircraft maintenance facility at Salina Regional Airport (SLN) in Kansas, signaling a major investment in the region’s aviation infrastructure and local economy. Scheduled to become operational by early spring 2026, the facility will service a segment of SkyWest’s fleet of over 500 regional jets, including those operating United Express flights to and from Salina. Economic and Operational Impact The expansion is poised to generate numerous well-compensated technical jobs at the airport, complementing the airline’s existing customer service workforce in Salina. Recruitment efforts for aircraft maintenance technicians are already underway, demonstrating SkyWest’s commitment to workforce development and establishing a long-term operational presence in central Kansas. By situating maintenance operations in Salina, SkyWest aims to improve the reliability and safety of its passenger services. The airline operates multiple daily United Express flights connecting Salina with major hubs such as Denver, Chicago, and Houston. These routes are critical for regional connectivity, providing Kansas travelers with access to United Airlines’ extensive domestic and international network. Strategic Alignment and Challenges The decision to base maintenance activities in Salina aligns with Kansas Governor Laura Kelly’s broader initiative to expand aviation maintenance, repair, and overhaul (MRO) operations across the state. Kansas continues to position itself as an attractive destination for aviation investment by leveraging its skilled workforce, supportive public institutions, and rich aviation heritage. Nevertheless, SkyWest’s expansion faces potential challenges. The growing demand for qualified technicians both locally and nationally may strain workforce availability. Additionally, regulatory compliance and competition from other maintenance providers could complicate operational efficiency and cost management. These factors are expected to attract heightened scrutiny from investors and stakeholders. In response, competitors may seek to enhance their own maintenance capabilities or pursue strategic partnerships to maintain market share. SkyWest’s move reflects a broader industry trend, with regional airlines increasingly investing in local maintenance facilities to support expanding fleets and ensure service dependability. Collaborative Efforts and Regional Significance The new facility is the product of coordinated efforts among local and state stakeholders, including the Kansas Department of Commerce, the City of Salina, Saline County, the Salina Airport Authority, and the Salina Community Economic Development Organization. This collaboration highlights the critical role of public–private partnerships in attracting high-value aviation projects and fostering regional economic growth. The establishment of SkyWest’s maintenance base represents a strategic achievement for the airline, Salina, and the state of Kansas. It reinforces Salina’s status as a regional aviation hub, provides high-quality technical employment opportunities, and supports the continued delivery of reliable air services that connect Kansas communities to the broader national and global economy.

Massachusetts Startup Merlin Labs to Go Public with AI Copilots for Military Aircraft Boston-based Merlin Labs, a pioneering startup developing artificial intelligence copilots for military aircraft, is preparing for a public listing in 2026 through a merger with Inflection Point Acquisition Corp. IV, a special purpose acquisition company (SPAC). This move positions Merlin as one of the first Massachusetts technology firms expected to enter the public markets next year, amid a period of heightened scrutiny and evolving investor sentiment toward AI companies. Advancing Autonomous Flight Technology for Military Applications Named after the iconic World War II aircraft engine, Merlin Labs is focused on creating AI systems that enable aircraft to operate autonomously from takeoff to landing. The company’s initial efforts concentrate on military platforms, including Boeing’s aerial refueling tanker and Lockheed Martin’s C130J Super Hercules cargo plane. In parallel, Merlin is pursuing Federal Aviation Administration certification for its AI technology on the Cessna Caravan, a small aircraft widely used in civilian cargo and passenger transport. Merlin’s flagship product, the “Merlin Pilot,” is designed as an AI copilot capable of managing all pilot duties during flight. Rather than aiming to eliminate human pilots entirely, the company seeks to reduce cockpit crew requirements, potentially allowing military aircraft to operate with a single pilot or fewer relief pilots on extended missions. CEO Matt George emphasized the practical approach, stating, “If you are out there trying to say, ‘Hey, next year, we’re gonna take all the Air Force airplanes and they’re gonna fly with nobody aboard’… that’s not realistic. And if you’re waiting for that environment to be real before the Air Force adopts autonomy, we’re going to be waiting a really long time.” Significant technical challenges remain, particularly in ensuring the AI can interact seamlessly with human air traffic controllers and collaborate effectively with onboard pilots. George explained that the system integrates on-screen data and spoken communication to provide context when the AI requires human assistance, underscoring the importance of human-machine interaction in the cockpit. Growth, Funding, and Market Challenges Ahead Operating out of Boston, Merlin conducts flight testing in New Zealand and North Kingstown, Rhode Island, with plans to open a new research and development facility at Hanscom Field in Bedford next year. The company currently employs approximately 200 staff and has raised $134 million from investors including First Round Capital and GV, Google’s venture capital arm. The upcoming SPAC merger is expected to inject an additional $200 million in funding to support Merlin’s growth and development. Merlin’s planned public debut arrives amid a period of uncertainty for AI startups. The market is closely monitoring anticipated initial public offerings from major players such as SpaceX, Anthropic, and OpenAI, while skepticism persists regarding sustained investor appetite for high valuations in the AI sector. Venture capitalists predict that 2026 may see many AI startups face significant challenges or fail due to shifting funding landscapes and performance pressures. Merlin will need to navigate these complex market dynamics carefully to secure investor confidence and distinguish itself within a competitive and rapidly evolving industry.

Nigeria’s Air Peace Expands Fleet with Additional Boeing 737-800 Wet-Lease Air Peace, Nigeria’s largest airline, has announced the addition of a Boeing 737-800 aircraft to its fleet through a new ACMI (Aircraft, Crew, Maintenance, and Insurance) wet-lease agreement with KlasJet, a Lithuanian subsidiary of Avia Solutions Group. This strategic move follows the recent collapse of SmartLynx Airlines, a former Avia Solutions Group carrier that ceased operations in November 2025. SmartLynx had been wet-leasing four Airbus A320-200s to Air Peace, and its sudden shutdown caused a $15 million financial impact alongside significant operational disruptions for the Nigerian carrier. Fleet Expansion and Operational Adjustments Data from ADS-B tracking reveals that Air Peace has already been operating one wet-leased Boeing 737-800 from KlasJet, registered as LY-BBN (msn 34903), since early December 2025. This aircraft, approximately 18.4 years old, is configured to seat 189 passengers in a single-class layout. The new agreement will introduce a second 737-800, reportedly LY-SPU (msn 30628), which has been in storage at St. Athan since November. While KlasJet initially indicated that LY-SPU would be delivered in a dual-class configuration, recent information suggests it remains set up for 186 passengers in a single cabin. KlasJet’s current fleet includes six Boeing 737-800s, with three wet-leased to El Al Israel Airlines, one to Air Peace, and two aircraft held in storage. Industry Context and Strategic Implications This fleet expansion occurs amid ongoing challenges within the global aviation industry, particularly surrounding Boeing’s production and delivery schedules. The manufacturer has faced scrutiny over its 737 and 787 programs, with recent FAA decisions on emissions waivers and difficulties in stabilizing output contributing to delivery delays. Boeing’s production struggles have allowed Airbus to gain a competitive edge in delivery numbers, influencing aircraft availability and leasing costs worldwide. Major carriers such as Delta and United have adjusted their strategies in response to these economic pressures, underscoring the importance of flexible fleet management. For Air Peace, the wet-leasing model offers critical adaptability in this uncertain environment. Oluwatoyin Olajide, Chief Operations Officer at Air Peace, emphasized the airline’s commitment to growth, stating, “We have ambitious plans for the future and are convinced that the aircraft leasing model provides us with the flexibility required to grow strategically.” According to ch-aviation fleet data, Air Peace’s current fleet comprises a diverse mix of aircraft, including six Boeing 737-300s, four 737-500s, one 737-700, six wet-leased 737-800s (five from AirExplore and one from KlasJet), two Boeing 777-200ERs, two 777-300s, one Dornier 328-300, eight Embraer E145s, two E190s, one E195, and five E195-E2s. KlasJet has yet to provide further details regarding the final configuration of LY-SPU. As Air Peace continues to expand its operations, its reliance on wet-leased aircraft highlights both the opportunities and challenges presented by the current global aviation landscape, shaped by manufacturer performance, regulatory developments, and evolving competitive dynamics.

Industry Leaders to Discuss AI’s Impact at SATEC 2026 The transformative and potentially disruptive influence of artificial intelligence on the aviation and aerospace sectors will be the focal point of the upcoming Singapore Aerospace Technology and Engineering Conference (SATEC) 2026. The twelfth edition of this biennial event is scheduled for February 4 at the Suntec Convention Centre, coinciding with the Singapore Airshow. Embracing Disruption in Aerospace Jointly organised by the Singapore Institute of Aerospace Engineers (SIAE) and the Republic of Singapore Air Force’s Air Engineering & Logistics Department (RSAF, AELD), this year’s conference adopts the theme “Embracing Disruption: AI in Aerospace Transformation and Innovation.” The event will highlight the development and implementation of emerging technologies across the aviation sector, bringing together industry leaders and experts from global aerospace firms, government agencies, and related fields. Plenary sessions will address the opportunities and challenges posed by AI, with particular attention to the competitive pressures from AI-native startups. These new entrants, rapidly advancing in sectors such as gaming, analytics, and healthcare administration, threaten to erode market share from established aerospace players. This dynamic is prompting incumbents to accelerate their adoption of AI-driven architectures to maintain competitiveness. Navigating Challenges and Opportunities The conference will also examine broader market reactions, including skepticism about the speculative nature of some industrial AI applications amid ongoing geopolitical fragmentation and rising concerns over AI-driven cyber threats. Defence technology leaders are expected to discuss strategies for integrating AI into critical infrastructure, while representatives from pharmaceutical and biotech sectors will explore how AI can enhance clinical trial processes and improve operational efficiency. ME7 Gabriel Tham, head of the Air Engineering and Logistics Department at the Republic of Singapore Air Force, emphasised the conference’s role as a catalyst for innovation and collaboration. He stated, “We hope that SATEC 2026 serves as the catalyst that strengthens innovation and collaboration across defence and commercial sectors. The conversations, partnerships and insights forged here will accelerate the aerospace industry’s collective progress as we thrive in the age of AI.” Kenneth Yeo, president of the Singapore Institute of Aerospace Engineers, underscored the event’s commitment to advancing aviation technology education and engineering competencies. “We look forward to the invaluable papers that will emerge, therefore stimulating discussions that will pave the way for a more interconnected and progressive aerospace landscape. Let us come together to embrace disruption and shape the future of aerospace engineering through innovation and collaboration,” he said. With a balanced focus on both the promise and pitfalls of AI, SATEC 2026 aims to equip industry stakeholders with the insights and networks necessary to navigate a rapidly evolving technological landscape.

Ho Chi Minh City Launches Drone Delivery Pilot Program Ho Chi Minh City’s Department of Science and Technology has embarked on a pioneering pilot program to explore the use of drones for urban delivery services, signaling a major advancement in the modernization of the city’s logistics infrastructure. This initiative operates within a regulatory sandbox framework and is a collaborative effort involving the Saigon Hi-Tech Park Management Board alongside technology companies Saolatek, Real-time Robotics Vietnam, and Di Dong Viet. Early Testing and Regulatory Framework The initial phase of the program commenced on January 5 with controlled test flights designed to evaluate key operational factors such as remote supervision, flight stability, safety protocols, and the transportation of small parcels. The project has obtained a flight permit from the Ministry of National Defense, which remains valid until the end of 2026, providing a regulatory foundation for ongoing experimentation and refinement. The ultimate goal is to expand drone delivery capabilities to cover longer distances within Ho Chi Minh City and its neighboring regions. Challenges and Competitive Landscape Despite the promising progress, the pilot program confronts several significant challenges. Regulatory complexities continue to pose obstacles as authorities strive to strike a balance between fostering innovation and ensuring public safety and privacy. Additionally, the acceptance of drone operations by the local population will be critical, as public perception may influence future regulatory and policy decisions. The competitive environment also plays a crucial role in shaping the program’s trajectory. Established drone delivery companies such as Wing and AMC Robotics are already active in the market and may respond to Ho Chi Minh City’s initiative by enhancing their own services or expanding their regional footprint. This competition is likely to accelerate technological advancements and the development of more efficient logistics solutions. Market Response and Future Prospects Market reactions to the pilot have been largely favorable, with growing interest in the transformative potential of drones for last-mile delivery services. The increasing use of drones in agriculture, driven by the demand for precision and data-driven farming techniques, may further bolster the adoption of drone delivery technologies across multiple sectors. As the pilot program advances, Ho Chi Minh City is positioned to become a key testing ground for integrating drone technology into urban logistics. Its experience could serve as a model for other cities in Vietnam and the broader region seeking to embrace innovative delivery solutions.

APOC Aviation Expands Engine Portfolio with CF34-10E Acquisition APOC Aviation, a specialist in trading and leasing narrowbody aircraft parts, engines, and landing gear, has acquired a CF34-10E engine for teardown. The engine, previously operated by Kenya Airways, will be dismantled in Europe, with all used serviceable material (USM) made available for sale or exchange. The recovered components will be stored at APOC’s warehouse near Schiphol Airport, reinforcing the company’s inventory of high-demand engine parts. Bruce Ansell, Technical Manager of APOC’s Engines Division, described the acquisition as a strategic move to expand the company’s engine material base. Having recently completed teardown of two V2500-A5 engines, APOC is now extending its market reach into the CF34-10E segment, a popular engine variant. Ansell emphasized the company’s ongoing efforts to secure additional CFM teardown engines to satisfy growing demand from airlines and traders. Market Context and Industry Implications The GE CF34-10E engine powers Embraer E190 and E195 regional jets, as well as the larger Embraer Lineage 1000 business jet, delivering approximately 20,000 pounds of thrust. Known for its reliability and fuel efficiency, the CF34-10E is a cornerstone of regional aviation, providing dependable performance on short-haul routes. APOC’s entry into the CF34-10E teardown market occurs amid intensifying competition within the commercial engine maintenance, repair, and overhaul (MRO) sector. Established firms such as ITP Aero have recently expanded their capabilities, notably by joining GE Aerospace’s European repair service network for the CF34-10 engine. This collaboration underscores a strengthening market presence for ITP Aero and highlights GE Aerospace’s continued innovation in maintenance technologies, including advanced processes like the 360 Foam Wash. As the commercial engine MRO market grows, APOC’s move may prompt increased competitive responses from rival companies seeking to enhance their maintenance offerings. Airlines and traders are increasingly focused on securing reliable sources for high-demand engine components, which could influence market dynamics and service standards. By dismantling the CF34-10E engine, APOC Aviation aims to broaden its product portfolio and better serve evolving customer requirements, positioning itself strategically within a competitive and rapidly developing engine MRO landscape.