Aircraft Engine Shops Overflowing with Repairs and Overhauls Amid Parts and Labor Shortages
TULSA, Okla. — Aircraft engine shops worldwide are in crisis mode due to parts and labor shortages, delayed deliveries of new airplanes from Boeing and Airbus, an engine recall, and the need for premature repairs. As travelers return to the skies in record numbers, the repair and overhaul of engines have surged from a $31 billion business before the pandemic to $58 billion this year, according to Alton Aviation Consultancy.
This surge in demand for engine repairs has been a boon for engine makers like GE Aerospace and Pratt & Whitney, as well as hundreds of smaller specialist service providers. American Airlines, facing a significant backlog of engine repairs, has taken matters into its own hands by increasing its overhauls at its engine shop in Tulsa, Oklahoma, by about 60% from 2023, aiming to complete more than 16 engines a month this year.
However, industry experts warn that the bottleneck in engine repairs is a result of the aviation industry’s rocky emergence from the pandemic, when companies shed thousands of skilled workers. Airlines facing worker shortages and key component deficits have been racing to get airplanes back into service to meet the surging demand. Furthermore, Airbus and Boeing’s delays in delivering new airplanes have forced carriers to keep older jetliners in service longer than planned.
The demand for engine overhauls is not only driven by older aircraft but also by some newer engines that run hotter and more efficiently than their predecessors, causing them to require maintenance earlier than expected. This situation has led to a significant impact on the engine supply chain, prompting low-cost airlines like JetBlue Airways and Spirit Airlines to defer new jet deliveries to save money.
Despite the challenges, engine suppliers like GE Aerospace are thriving in this market, with engine maintenance, repairs, and overhaul contributing 65% of their revenue. GE Aerospace recently announced a $1 billion investment to upgrade its engine shops globally over the next five years.
With rental rates for engines skyrocketing and spare engines in high demand, airlines are facing difficulties in securing slots at engine shops. Delta Air Lines, like American Airlines, has been overwhelmed with repair and overhaul orders, indicating the widespread challenges across the industry.
The implications of the current crisis on the aviation sector are significant, with potential long-term impacts on maintenance costs, operational efficiency, and airline profitability. As the industry navigates through these challenges, stakeholders are actively seeking solutions to address the growing demand for engine repairs and overhauls while ensuring safety and reliability in air travel.
