- 01 Feb 2021
- Gerrard Cowan
- Engines - BizAv
New spare engine solutions such as long-term leasing from Pratt & Whitney are providing attractive alternatives for customers who want exclusive access to spare engines while keeping ownership costs down. Find out more...
In the past, operators in need of a Pratt & Whitney spare engine (for business jets, PT6A and regional turboprops, helicopters and commercial APUs) had two choices from the OEM: buying a spare engine outright or leasing one on a short-term basis. Now, they also have customized long-term leasing options, thanks to a new program...
“We have recently introduced long-term lease solutions for aircraft powered by Pratt & Whitney Canada engines,” says Antonio Gallo, Senior Manager, Aftermarket Business Development. “This was done in response to the fact that the number of operators leasing their aircraft is increasing, as is the number of operators looking for customized OEM solutions to extend the life of their aircraft with options that match their budget and operating needs.
"Our goal is to provide more flexible solutions that suit a wide range of customer budgets and mission profiles. It allows customers to prioritize their capital to help grow the business while minimizing business risk," says Gallo.
Each solution has its benefits. Buying a spare engine outright is a great option when there’s a long operating horizon. It means you own the asset yourself, so you are free to manage it according to your needs and resell it once it’s no longer required. "This is still popular and we have a variety of purchase options available," Gallo explains.
Short-term leasing, on the other hand, gives you access to an engine on a temporary basis while your engine is in the MRO shop without requiring a major upfront capital investment. This option minimizes cash outflow and mitigates risks for operators with limited funding on an event by event basis.
Pay for What you Need, When you Need it
Long-term leasing, meanwhile, is ideal for customers who need an engine onsite for a longer period of time – 12 months or more – but prefer to keep as much capital as possible for growing their business, or prefer not to invest in a spare asset.
"Long-term leasing helps operators maximize their return on investment and reduce the long-term risks in the event of shorter operating horizons. It can provide you an alternative to align the lease to your aircraft lifecycle," Gallo says.
Here’s how it works: engines are leased for a minimum 12-month term. The customer pays a competitive fixed monthly rate plus hourly usage charges. Unlike most short-term leases (for shop visits) there’s no minimum flying hour requirement. There’s also no need to exchange a core to qualify.
The leasing rate includes much more than the engine. It covers all scheduled off-wing maintenance (overhauls, hot section inspections, etc.), guarantees the availability of a spare at all times and provides access to Pratt & Whitney’s Global Service Network.
“The fact that we cover off-wing scheduled maintenance is a huge cost avoidance,” remarks Antonio. “And since we have mobile repair teams and field service representatives in all regions of the world, operators will always have access to support if needed. In that sense, a long-term lease gives you peace of mind.”
Various commercial-arrangement permutations are possible, depending on what the customer needs. A long-term lease could, for example, be bundled with a Pratt & Whitney maintenance program, such as a Fleet Management Program (FMP), providing everything a customer needs under an hourly rate from the OEM. Volume discounts for long-term leases are available for large fleets as well.
Exclusive Access to Engines for Mature Aircraft
“Our leasing division has the largest pool of Pratt & Whitney rental and exchange engines in the world,” notes Antonio. For mature aircraft approaching the end of their life, there are often few engine rental options – if any – available on the market. However, as the OEM, Pratt & Whitney provides access to spare engines available for all models in service.
"Our rental pool is unique because no one else in the industry has this comprehensive engine inventory. We’re the only lessor who can keep all Pratt & Whitney-powered aircraft in every market flying. Thanks to the size of the engine pool, we can also customize leasing arrangements to suit each operator, whether they have one engine or a large fleet, to offer sustainable aircraft life-cycle solutions," Gallo adds.
As he explains, long-term engine leasing can allow customers to extend the life of mature aircraft.
“If your aircraft is at the end of its life and needs a limited number of flying hours, a long-term leasing provides access to an engine for the hours you need. Then you can return it when the aircraft is no longer in use. This approach allows you to align your costs with the operating horizon you have remaining on your aircraft,” he says.
Learn more about how Pratt & Whitney is helping operators to improve engine availability and manage their budgets in P&WCSMART Makes Maintenance More Cost Effective & Predictable.
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