Aircraft engine maintenance times at historic high, Bain says

By Lisa Barrington

SEOUL (Reuters) - Airlines face their longest ever waits for engine maintenance with demand likely to peak in 2026, according to consultancy Bain, constraining carriers' growth and adding costs amid a concurrent shortfall in new aircraft.

A shortage of parts, labour and new planes as aviation emerged from the pandemic has collided with higher than expected repairs for new generation engines, putting intense pressure on maintenance, repair and overhaul (MRO) providers.

Turnaround times for new-generation engines are 150% higher than pre-pandemic benchmark times, and 35% higher for legacy engine types, Bain said in a report published on Thursday.

Adding to MRO demands, airlines experiencing delays in new aircraft deliveries are not retiring older planes, which require complex maintenance and parts.

"Aircraft engine MRO demand is likely to experience a near-term peak in 2026 and remain constrained through the end of the decade," said Jim Harris, co-leader of Bain's global Aerospace and Defense practice.

"The next large surge in demand from new generation engines will begin towards the end of 2030," he said.

The CEO of Malaysia-based MRO firm Asia Digital Engineering (ADE) told Reuters this week his industry was booming, with ADE set to open a new 14-line hangar in August.

"Unless MRO companies act quickly to close this capacity gap, airlines will face higher costs to operate constrained fleets. The financial burden, on top of growing costs to decarbonize air travel, is likely to slow passenger travel growth," Harris said.

Airlines have limited choice in which engines power their jets. Some planes have one possible engine type, like the Boeing 737 MAX, or two, like the Airbus A320neo.

Pratt & Whitney, part of RTX, said last July a rare powder metal defect could lead to cracking of some engine components in the A320neo and called for accelerated inspections, which airlines report can take up to almost a year to complete because of waiting times.

Latest data from IBA Insight shows 452 aircraft have been grounded due to the issue, and 494 face future grounding.

Kane Ray, head of IBA's General Aviation and Aftermarket, said the engines also needed other retrofit and overhaul work.

Indian operator IndiGo said last month it had agreed compensation with Pratt & Whitney.

Vietnam's aviation authority this month told the country's airlines to lease more aircraft to compensate for those grounded due to engine issues.

(Reporting by Lisa Barrington in Seoul; Additional reporting by Khanh Vu in Hanoi; Editing by Mark Potter)