Interview with Jelle Menges of AFI KLM E&M

GE Aerospace and WZL-2 Sign MOU to Develop F110 Engine Maintenance in Poland GE Aerospace and Poland’s Military Aviation Works (WZL-2) have formalized a Memorandum of Understanding (MOU) to collaborate on the maintenance, repair, and overhaul (MRO) of the F110-GE-129 engine, which powers Boeing’s F-15EX Eagle II fighter jet. The agreement, signed in Warsaw by WZL-2 CEO Jakub Gazda, Technical Director Zbigniew Matuszczak, and GE Aerospace F110 Product Director Sean Keith, seeks to enhance Poland’s domestic capabilities in servicing this critical engine. Strengthening Local Maintenance Capabilities The MOU outlines a joint effort to evaluate the requirements for intermediate and depot-level maintenance, encompassing tooling, machining, training, and modifications to test cells. Sean Keith highlighted the F110 engine’s legacy, noting its more than 40 years of continuous production and innovation. He emphasized the engine’s design, which facilitates maintenance through Shop Replacement Units (SRUs) that allow approximately 90% of servicing to be conducted locally. This approach aims to reduce aircraft downtime and lower lifecycle costs, thereby improving operational efficiency. This partnership emerges amid robust market confidence in GE Aerospace, underscored by a recent $5 billion contract awarded by the U.S. Air Force for F110 engines. While the collaboration promises significant benefits, it also presents challenges, including adapting maintenance processes to Poland’s specific operational environment, ensuring supply chain stability, and navigating complex regulatory frameworks. Expanding Training and Technological Development The agreement with WZL-2 builds upon GE Aerospace’s recent collaboration with Warsaw’s Military University of Technology (WAT), which focuses on advancing engine training and education for the F110-GE-129. This initiative also explores the establishment of an Aircraft Engine Additive Manufacturing Laboratory, signaling a commitment to integrating cutting-edge technologies into Poland’s aerospace sector. The F110-GE-129 engine delivers 29,500 pounds of thrust and is actively deployed within the U.S. Air Force’s F-15EX fleet. With over 11 million flight hours logged, the engine powers both F-15 and F-16 aircraft across the U.S. military and 16 allied nations, including Türkiye’s KAAN fighter program. As GE Aerospace and WZL-2 advance their cooperation, they will contend with increasing competition in the small turbofan engine market from industry rivals such as Pratt & Whitney and Honeywell. GE Aerospace’s Longstanding Commitment to Poland GE Aerospace has maintained a significant presence in Poland for more than three decades, employing over 2,000 personnel across six locations. Since 1992, the company has invested approximately $700 million in the country, including an annual $50 million dedicated to research and development. This sustained investment underscores GE Aerospace’s strategic commitment to supporting and expanding Poland’s aerospace capabilities.

AerCap Report Highlights Tourism’s Role in Aviation Leasing Recovery AerCap Holdings NV, the world’s largest aircraft leasing company, has emphasized the pivotal role of tourism in the aviation sector’s gradual recovery, as detailed in its latest quarterly report for 2025. Serving over 300 airline customers worldwide, AerCap continues to assess the enduring impacts of the COVID-19 pandemic, shifting geopolitical landscapes, and the evolving dynamics within the aircraft leasing market. Tourism as a Catalyst for Leasing Demand Tourism remains a fundamental driver of passenger air travel and, consequently, the demand for leased aircraft. The report highlights that easing travel restrictions across key regions such as Europe and Asia have contributed to a rebound in passenger numbers. European governments, in particular, have facilitated this recovery by implementing relaxed travel protocols and introducing vaccine passports, which have bolstered both commercial and cargo aviation sectors. Nevertheless, the recovery is uneven across different markets. Variations in government policies and economic conditions have resulted in disparate levels of tourism resurgence. While some regions experience robust growth, others continue to face challenges, complicating long-term forecasting and strategic planning for aviation leasing companies. Ongoing Industry Challenges Despite encouraging signs, AerCap identifies several persistent challenges confronting the aviation industry. Rising fuel costs and ongoing supply chain disruptions are driving up operational expenses for airlines, compelling them to carefully balance fleet expansion with financial prudence. The report also underscores the increasing urgency of decarbonization efforts, a theme prominently discussed at the World Aviation Festival 2025. Environmental regulations and sustainability targets are becoming significant factors shaping leasing strategies and fleet management decisions. Geopolitical tensions further complicate the outlook. The protracted conflict in Ukraine and escalating instability in the Middle East have disrupted global trade and tourism flows, leading to diminished travel activity in affected regions. Sanctions, trade barriers, and currency volatility have exacerbated operating costs and heightened uncertainty for both airlines and lessors. Financial Restructuring Amid Economic Pressures The broader economic environment, characterized by inflationary pressures and regional economic slowdowns, has constrained airlines’ capacity for growth planning. In response, governments worldwide have introduced financial support measures, including subsidies and tax relief, aimed at stabilizing the tourism and aviation sectors. Within this context, the aviation leasing industry is undergoing significant financial restructuring. The recent bankruptcy court approval of the Spirit-AerCap agreement and debtor-in-possession (DIP) financing exemplifies ongoing negotiations and the necessity for flexible financial strategies. Market reactions to AerCap’s report have been mixed. While some investors express optimism regarding tourism’s positive influence on aviation recovery, others remain cautious due to persistent industry headwinds. Competitors are increasingly focusing on technology and innovation—topics highlighted at the Skift Global Forum East 2025—to adapt to evolving market conditions and position themselves for sustainable growth. Outlook for 2025 As 2025 progresses, AerCap and the wider aviation leasing sector confront a complex array of opportunities and challenges. The revival of global tourism remains central to the industry’s prospects, yet success will depend on effectively managing geopolitical risks, economic uncertainties, and the accelerating imperative for environmental sustainability.

Joby Aviation Stock Surges Following NVIDIA Partnership on AI Flight System Joby Aviation (NYSE: JOBY) saw its shares rise approximately 6% in early trading on Wednesday after announcing a strategic partnership with NVIDIA (NASDAQ: NVDA) aimed at advancing the development of its Superpilot autonomous flight system. This collaboration designates Joby as NVIDIA’s aviation launch partner for the IGX Thor industrial AI compute platform, which is built on NVIDIA’s latest Blackwell architecture and engineered for intensive, real-time edge processing. Enhancing Autonomous Flight Capabilities The integration of the IGX Thor platform is expected to significantly enhance Joby’s Superpilot system by enabling it to process substantially larger volumes of onboard data. This capability will facilitate near-real-time adjustments to flight trajectories, weather conditions, and air traffic interactions—features deemed essential for achieving certified autonomy in aviation. Additionally, Joby emphasized the platform’s predictive maintenance functionalities, which can identify early signs of component anomalies and flag potential issues before failures occur. This proactive approach aims to reduce aircraft downtime and improve overall operational readiness. Market Response and Industry Context The announcement was met with a positive market response, reflecting investor confidence in the partnership with a leading AI chipmaker. NVIDIA has recently expanded its AI-driven collaborations across various sectors, forging significant alliances with companies such as Eli Lilly, Palantir, Samsung, and Uber. This momentum has contributed to NVIDIA reaching a historic $5 trillion market capitalization, underscoring investor enthusiasm for its growing influence in artificial intelligence across multiple industries. Despite this optimism, analysts have issued cautionary notes regarding the intensifying competition within the AI chip market. While NVIDIA’s sovereign AI revenue is projected to more than double to over $20 billion this year, some experts warn that the company’s substantial valuation and the increasingly crowded AI chip landscape could affect its stock performance in the near term. Strategic Implications for Joby Aviation For Joby Aviation, the partnership with NVIDIA is anticipated to accelerate the testing and deployment of autonomous flight functions, potentially providing a competitive advantage as the company advances toward commercializing electric vertical takeoff and landing (eVTOL) aircraft. As the integration of advanced AI technologies in aviation gains momentum, both Joby and NVIDIA are positioning themselves at the forefront of a rapidly evolving and highly competitive sector.

Boeing Model 81 Trainer Undergoes Multiple Engine Replacements Amid Early Aviation Challenges In the late 1920s, Boeing’s Model 81 biplane trainer emerged as a focal point for engine experimentation during a period of rapid innovation in aviation. Constructed using the era’s standard methods—steel tubing frames, wooden spars and ribs, and fabric coverings—the Model 81 was designed to be adaptable, allowing Boeing to test various powerplants in pursuit of improved performance and military contracts. This shift came after the company’s earlier Model 64 failed to meet expectations, prompting Boeing to intensify efforts with the Model 81 in 1928 to maintain its competitive position. Early Engine Trials and Navy Evaluation The initial Model 81 was powered by an unconventional four-cylinder, air-cooled Fairchild-Caminez engine arranged in an X-configuration, delivering 125 horsepower at a notably low 1,000 rpm. Boeing experimented with both two- and four-blade propellers to optimize efficiency. However, the engine’s design introduced significant torque and vibration issues, undermining its reliability. Despite these challenges, Boeing sold a Model 81 equipped with the Fairchild-Caminez engine to the U.S. Navy for $8,300. Designated the XN2B-1, the aircraft was delivered in June 1928. By January 1929, the Navy replaced the problematic engine with a more conventional five-cylinder Wright J-6 (R-540) radial engine, which enhanced performance but did not lead to additional orders. Continued Modifications and Training Use Boeing persisted in refining the Model 81’s powerplant configurations. Another variant, the Model 81A, was fitted with a 145-horsepower Axelson engine and first took flight in December 1928. This version was assigned to the Boeing School of Aeronautics in Oakland, California, where it underwent further modification with a 115-horsepower Axelson engine, resulting in the Model 81B. Subsequently, the 81B was upgraded with a 165-horsepower Wright J-6-5 radial engine, although this change did not warrant a new model designation. The Boeing School of Aeronautics operated one of the two Model 81 trainers from its Oakland base, utilizing the aircraft primarily for pilot instruction. Broader Implications for Boeing’s Innovation Strategy The iterative engine swaps and design adaptations of the Model 81 exemplify Boeing’s early commitment to technical experimentation amid evolving market demands. This pattern of innovation remains relevant today, as the company faces ongoing pressures to develop new narrowbody aircraft and secure partnerships with advanced engine manufacturers. Current challenges, including delays in the 777X program now pushed to 2027, have raised concerns about Boeing’s market confidence and financial outlook. Meanwhile, Airbus’s recent overtaking of Boeing in aircraft deliveries has intensified the competitive landscape, underscoring the urgency for Boeing to accelerate innovation and cultivate strategic collaborations, potentially with engine producers such as Rolls-Royce. The history of the Model 81’s engine replacements thus reflects a longstanding tension within Boeing between advancing technology and meeting commercial expectations—a dynamic that continues to influence the company’s trajectory in the global aviation industry.

How Business Aircraft Technology Is Mitigating Air Turbulence At cruising altitudes around 42,000 feet, where the atmosphere is thinner and generally smoother, business jets often fly above much of the turbulence that affects aircraft operating at lower levels. This high-altitude corridor provides a safer and more comfortable environment for passengers aboard many business jets. In contrast, light jets and turboprops, which typically have maximum operating ceilings of 35,000 feet or below, remain more susceptible to turbulence. This phenomenon can range from causing minor discomfort to presenting significant safety hazards. According to data from the National Center for Atmospheric Research, pilots report approximately 65,000 incidents of clear air turbulence annually. The London School of Economics estimates that the cumulative impact of these events—including compensation claims, increased fuel consumption, rerouting, delays, and maintenance—costs the commercial aviation industry nearly $2.6 billion each year. Innovations in Business Aviation Technology Business aviation has historically been a fertile ground for pioneering technologies aimed at enhancing passenger comfort and operational efficiency. The sector is currently experiencing a steady growth rate of 3.7% in global flights year-over-year, with North America leading this expansion. The preowned jet market is showing signs of stabilization, improving affordability for buyers in the United States and fostering a more optimistic outlook for year-end sales. Operators such as GlobeAir are introducing new aircraft models and adapting their business strategies to address evolving customer demographics, reflecting the industry’s ongoing commitment to innovation. One of the most notable technological advancements comes from Turbulence Solutions, a Vienna-based company founded by András Gálffy. The firm has developed an “active turbulence-canceling technology” that research indicates can reduce the effects of turbulence by more than 80%. This patented system employs retrofittable “flaplets,” small control surfaces attached to the aircraft’s flaps. Inspired by the adaptive wing movements of birds, these flaplets dynamically reshape the wing in real time to counteract turbulence without necessitating major structural modifications. The system relies on sensors mounted on retractable booms or the aircraft’s nose, which provide the necessary lead time to calculate and actuate the flaplets. These surfaces move three to five times per second, functioning similarly to noise-canceling headphones by generating an opposing signal to neutralize turbulence. This technology has been successfully tested on light, fixed-wing aircraft and is currently available on the Shark 600 ultralight model produced by Slovakia-based Shark.Aero. Turbulence Solutions is now focusing on expanding into the broader light aircraft and business aviation markets, with certification efforts underway for larger aircraft. Enhancing Safety and Passenger Experience Through Integration In addition to turbulence-canceling systems, business aircraft are increasingly equipped with a suite of advanced technologies designed to further mitigate turbulence and improve safety. The integration of autoland systems and high-speed connectivity solutions, such as Starlink, on aircraft like the Cessna Longitude exemplifies this trend. These innovations not only enhance operational safety but also ensure that passengers remain connected and comfortable, even under challenging flight conditions. As business aviation continues to evolve, the adoption of cutting-edge aircraft designs and onboard systems is establishing new benchmarks for passenger comfort and operational resilience, enabling the industry to better navigate both literal and figurative turbulence.

AI Unsuitable for Air Traffic Control, Experts Warn Rising Interest Amid Staffing Shortages In the wake of a significant shortage of air traffic controllers that led to widespread flight disruptions in late October, the aviation industry has seen growing interest in artificial intelligence as a potential remedy. Over the past year, proposals advocating for increased AI integration into air traffic control systems have gained momentum, with proponents highlighting automation as a means to enhance operational efficiency and alleviate staffing pressures. However, leading experts in the field caution against the premature adoption of AI for such critical and high-stakes responsibilities. Patrick Arnzen, CEO of the flight training organization Thrust Flight, expressed deep reservations about AI’s ability to replicate the nuanced and instantaneous decision-making essential to air traffic control. He emphasized that the expertise required is cultivated over years of experience, involving not only efficiency but also the paramount concern of safety. “It takes years to develop that instinct to really understand how to do this job—not just efficiently, but also effectively,” Arnzen remarked. “There are a lot of key components to keeping everybody safe up there in the skies.” Safety Concerns and Regulatory Challenges The debate surrounding AI’s role in air traffic management intensified following a tragic collision in January between an Army Black Hawk helicopter and a passenger jet at Washington Ronald Reagan National Airport, which resulted in 67 fatalities. This incident spurred renewed calls to leverage AI technologies, with startups such as NoamAI introducing AI-powered support systems designed to assist control towers. Despite these technological advances, Arnzen warned against overreliance on AI, noting that many control towers still operate with outdated equipment and legacy systems. He also highlighted the aviation sector’s deeply ingrained culture of caution and resistance to rapid change. “In the aviation world, everything that we do is wrapped in heavy regulation,” he explained. “Even if the technology is possible, you can’t deploy it without regulatory approval.” These regulatory barriers underscore broader concerns about the safety and reliability of AI-driven air traffic control systems. Aviation authorities are expected to subject such technologies to rigorous scrutiny, which will likely slow their adoption and raise the standards for demonstrating safety. This cautious regulatory environment is reflected in the market, where investors and stakeholders remain skeptical. Uncertainty about AI’s readiness for critical applications has influenced funding decisions, prompting some companies to shift focus toward less sensitive AI uses or to intensify efforts to refine their technology for air traffic control. Industry Outlook and the Path Forward While the broader AI sector continues to attract substantial investment, analysts warn of potential overvaluation and stress the importance of diversification. High-profile setbacks in sectors like aviation serve as reminders of the current limitations of AI capabilities. For now, industry leaders advocate a measured and balanced approach. Arnzen acknowledged the inevitability of AI’s growing role but urged caution in its deployment. “This technology is coming, it’s something that we want to embrace. But I also think that it’s something that we want to approach carefully and thoughtfully and never really give the full reins to a computer,” he said. “The world is changing, and AI is driving that in a very, very meaningful way—but as far as giving up control to AI to manage the safety of our world, we need to be very careful with that.”

Air India to Complete Refurbishment of Boeing 787 Fleet by Mid-2027 Fleet Modernization and Expansion Plans Air India has announced that it will complete the refurbishment of its entire legacy Boeing 787-8 fleet by mid-2027, as part of its ongoing five-year transformation strategy. The airline’s CEO, Campbell Wilson, revealed this timeline during the Aviation India and South Asia 2025 conference in New Delhi. Following the 787 retrofit, the airline plans to begin refurbishing its Boeing 777 fleet, with completion anticipated by early 2028. Owned by the Tata Group, Air India is also preparing to expand its wide-body aircraft lineup. The first of its new Boeing 787 Dreamliners is expected to arrive between December and January, while deliveries of at least two Airbus A350-1000 aircraft are scheduled for the next financial year. Wilson indicated that the airline intends to take delivery of a new wide-body aircraft approximately every six weeks over the next two years. Currently, Air India operates a fleet of around 190 aircraft, including 13 A320ceo and 4 A321ceo models. The airline recently completed the retrofit of all 27 legacy A320neo planes, underscoring its commitment to fleet modernization. Safety Concerns and Market Implications The refurbishment timeline coincides with increased scrutiny of the Boeing 787 Dreamliner’s safety record. A recent midair emergency involving an Air India 787 has prompted India’s leading pilots’ association to call for comprehensive inspections of all Boeing 787s operating within the country, citing concerns over potential electrical faults. This development follows a tragic crash in June, when an Air India Boeing 787-8 operating flight AI171 to London Gatwick crashed shortly after takeoff from Ahmedabad, resulting in 260 fatalities, including 241 passengers. These incidents have heightened market concerns regarding the Dreamliner’s reliability and may impact Air India’s refurbishment and fleet expansion strategies. Competitors are reportedly exerting pressure on Boeing to resolve ongoing safety issues, while some airlines are reconsidering their fleet plans amid the delay of Boeing’s 777X program to 2027, which is reshaping market dynamics. Commitment Amid Challenges Despite these challenges, Air India remains steadfast in its modernization efforts. CEO Campbell Wilson reaffirmed that all Boeing 787 aircraft in the fleet will be fully refurbished by mid-2027, with the Boeing 777 retrofit scheduled to commence in late 2026 and conclude by early 2028. The airline aims to enhance its wide-body operations through the integration of both Dreamliners and A350s, navigating a competitive and closely monitored aviation environment.

Rolls-Royce, Pratt & Whitney, and General Electric: Leaders in the Aircraft Engine Market Aircraft engine manufacturers are fundamental to the aviation industry, providing the essential powerplants that enable commercial flight. Engines represent the most valuable component of an aircraft, accounting for up to half of the total value in modern jets. Beyond their monetary significance, engines are critical to operational efficiency and profitability. The global aircraft engine market is predominantly influenced by four major players: CFM International, General Electric (GE Aerospace), Pratt & Whitney, and Rolls-Royce. Each company holds a distinct leadership role within specific segments of the market. Market Segmentation and Industry Growth CFM International, a joint venture between GE and Safran, alongside Pratt & Whitney, dominates the single-aisle jet engine segment, powering widely used aircraft such as the Boeing 737 and Airbus A320 families. Rolls-Royce has carved out a strong position in the widebody market, particularly with its Trent engine series. GE Aerospace also commands a significant share of the widebody sector, powering half of the global widebody fleet, including the Boeing 747, 777, and 787 Dreamliner. Notably, GE is the exclusive engine supplier for the Boeing 777 and 747-8, while sharing the 787 platform with Rolls-Royce. The aircraft engine industry is a multi-billion dollar sector, valued at over $81 billion in 2024 according to Global Market Insights. North America accounts for more than one-third of this market. Turbofan engines constitute over 70% of sales, reflecting their dominance in commercial aviation. The sector is experiencing robust growth, with a projected compound annual growth rate (CAGR) approaching 9%. By 2034, the market is expected to exceed $184 billion, with North America’s share alone surpassing the entire global market size of 2024. While conventional engines currently dominate new orders, the industry is poised for a shift toward hybrid engine technologies over the next decade, particularly for regional aircraft. This transition highlights the sector’s increasing focus on innovation and sustainability. Competitive Dynamics and Future Outlook Competition within the aircraft engine market is intensified by the critical importance of aftermarket services. GE Aerospace recently raised its 2025 profit forecast, driven by strong demand in the aftermarket segment, which represents a vital revenue stream as engines typically retain value longer than airframes. Rolls-Royce is actively enhancing the durability of its Trent 1000 engine to maintain competitiveness against GE’s GEnx engine. The company’s stock has surged to record highs, supported by strong first-half financial results and a rebound in civil aerospace activity. The aftermarket segment is becoming increasingly competitive, as demonstrated by the expansion of the Engine Assurance Program to include models from Rolls-Royce, GE Aerospace, and Pratt & Whitney Canada. This development underscores the growing significance of maintenance, repair, and overhaul (MRO) services within the overall market. As the aircraft engine market continues to expand and evolve, Rolls-Royce, Pratt & Whitney, and General Electric remain at the forefront, navigating challenges and opportunities in technology, aftermarket services, and global demand. Their ongoing innovation and strategic positioning will continue to shape the future of aviation propulsion.

FAA Certifies Dornier Technology as Foreign Repair Station for A320 Aircraft Dornier Technology, headquartered in Clark, Philippines, has been officially certified by the United States Federal Aviation Administration (FAA) as a Foreign Repair Station. This certification authorizes the company to perform heavy maintenance on the Airbus A320 family of aircraft. The approval encompasses scheduled preventive maintenance, major repairs and alterations, as well as heavy airframe maintenance up to the D-Check (12-year inspection) for the Airbus A318, A319, A320, and A321 models. This includes both the ceo and neo variants powered by CFM International CFM56, International Aero Engines V2500, and Pratt & Whitney PW1100G engines. Significance of the Certification The FAA certification followed a rigorous audit conducted by US officials at Dornier Technology’s facilities. Nick Gitsis, the company’s chief executive, underscored the importance of this milestone, stating that the FAA’s global recognition positions Dornier Technology to meet the exacting standards demanded by aircraft owners and lessors worldwide. He emphasized that the certification validates the company’s compliance with FAA requirements across its processes, inspection systems, equipment, and personnel. Gitsis also highlighted the broader industry context, noting that the Airbus A320 family recently overtook the Boeing 737 as the world’s most-delivered aircraft. This achievement has bolstered confidence in Airbus’s supply chain and maintenance capabilities. He remarked that FAA approval enables Dornier Technology to engage more actively in the global maintenance, repair, and overhaul (MRO) market. Company Background and Strategic Outlook Established in 2008, Dornier Technology provides maintenance services for the Airbus A320 Family, ATR 42/72, Boeing 737, and BAE 146 aircraft. The company holds certifications from civil aviation authorities in the Philippines, Indonesia, Korea, and Myanmar, alongside ISO 9001:2015 accreditation for major maintenance inspections, repairs, modifications, and engineering services. While the FAA certification is expected to enhance Dornier Technology’s international profile and attract a broader client base, it also introduces challenges related to regulatory compliance and operational integration. The company plans to capitalize on its competitive labor costs and the Philippines’ emerging status as an MRO hub. Dornier Technology aims to increase its foreign airline clientele to 70 percent by the end of the next year. Gitsis indicated that the company anticipates growth in markets including the United States, ASEAN countries, Taiwan, Japan, Korea, and Pacific island nations. Industry Context and Competitive Landscape The aviation industry is closely monitoring developments such as Dornier Technology’s certification as Airbus continues to expand its global maintenance network. Competitors are responding accordingly; Boeing is working to restore regulatory confidence following recent FAA approvals and a surge in orders, while China’s C919 program faces challenges amid ongoing US-China trade tensions. Gitsis concluded by reaffirming the company’s focus on airframe heavy maintenance, which remains its core business largely supported by domestic carriers. He noted that the Philippines is emerging as a significant hub for aircraft MRO, owing to its large pool of skilled and certified maintenance engineers and technicians who consistently deliver workmanship that meets the highest international standards.

Dubai Aerospace Enterprise Reports Third Quarter 2025 Results Financial Performance and Growth Dubai Aerospace Enterprise (DAE) has reported strong financial results for the nine months ending September 30, 2025, demonstrating significant growth and ongoing investment in its aircraft fleet. The company’s total revenue rose to US$1,277.7 million, representing a 25.6% increase compared to US$1,017.1 million in the same period last year. This growth was primarily driven by higher lease revenue from newly acquired aircraft and increased maintenance income. Profit for the period surged by 82.3% to US$566.7 million, up from US$310.8 million a year earlier. This improvement reflected enhanced operating profit and insurance recoveries, although it was partially offset by increased finance costs and tax expenses. Operating profit before exceptional items reached US$686.1 million, a 34.0% rise from US$512.1 million, supported by revenue growth and gains from aircraft disposals. Total assets expanded to US$16,359.1 million as of September 30, 2025, compared to US$13,033.3 million at the end of 2024, largely due to fleet expansion. Available liquidity stood at US$3,439.3 million, slightly down from US$3,785.6 million at year-end 2024, with a liquidity coverage ratio of 227%, down from 274%. The net debt-to-equity ratio increased to 2.60:1 from 2.42:1, reflecting higher leverage following recent aircraft acquisitions. Operational Developments As of September 30, DAE’s fleet comprised 726 aircraft, a substantial increase from 506 at the end of 2024. This included 530 owned aircraft, up from 329, alongside 113 managed aircraft and 83 committed aircraft. During the period, the company acquired 249 owned aircraft—including those from a business combination—and 14 managed aircraft, while selling 48 owned and 11 managed aircraft. The weighted average age of the owned fleet was 6.8 years for passenger aircraft and 11.2 years for freighters, compared to 7.3 and 10.5 years respectively at the end of 2024. Lease terms averaged 6.4 years for passenger aircraft and 9.1 years for freighters, reflecting the integration of newer assets. Unsecured debt accounted for 85.9% of total debt, up from 79.4%, indicating a continued preference for flexible financing arrangements. Market Context and Competitive Landscape Despite DAE’s robust results and strategic fleet expansion, the company operates amid intensifying competition within the aerospace leasing sector. GE Aerospace’s recent earnings have reinforced its position as a preferred choice for investors, potentially drawing attention away from other players in the market. Additionally, competitors such as Art's-Way Manufacturing Co., Inc. and Applied Industrial Technologies have announced strategic initiatives aimed at increasing market share and profitability, underscoring a more dynamic and competitive environment. Outlook DAE’s third quarter results underscore its strong operational performance and commitment to maintaining a young, well-leased fleet. However, with growing competition and evolving investor sentiment, the company’s capacity to sustain growth and optimize its financial position will remain under close observation in the coming quarters.