By Allison Lampert and Doyinsola Oladipo
NEW YORK, May 8 (Reuters) – The recent grounding of U.S. budget carrier Spirit Airlines could help ease shortages of next-generation RTX spare engines needed to keep late-model Airbus single-aisle jets flying, industry executives and analysts say.
Spirit ceased operating its all-Airbus fleet on May 1 due to high jet-fuel prices. Its bankruptcy is leading to fresh cases of near-new A320neos being dismantled for parts – a trend that had already been occurring in the industry due to a severe shortage of RTX Pratt & Whitney Geared Turbofan engines.
With more A320neo planes becoming available in the United States following Spirit’s demise, the fuel-efficient GTF engines are often more appealing than the aircraft they power.
“We are seeing some of the GTF engines from the Spirit A320s being removed from the airframes and leased out to customers to support (aircraft on the ground),” said Austin Willis, CEO of Willis Lease Finance Corp, who added that leasing rates for GTF engines have not declined.
“This is providing some limited temporary relief from the supply/demand imbalance.”
Hundreds of A320neo planes have been grounded, due in part to long waiting times for engine inspections and repairs, and after a manufacturing problem at Pratt & Whitney put pressure on GTF engine output.
GTF engines power at least 40% of A320neos in service and compete for airline contracts with CFM International’s LEAP engine.
Airbus has complained of GTF shortages for new jets during a tug of war over who has priority to receive scarce engine supplies – assembly lines for new aircraft or airlines waiting for repairs.
Lars Wagner, CEO of Airbus’ Commercial Aircraft business, declined to comment on the GTF during an interview on Wednesday.
AIRCRAFT PARTS PROVIDE RELIEF
Dick Allewelt, founder and owner of Allewelt Aviation Consulting GmbH in Germany, said teardowns of some Spirit aircraft “could have an easing effect on the spare engine market going forward.”
Sumisho Air Lease, which leased late-model jets to Spirit, declined to comment. Lessor AerCap was not immediately available for comment.
RTX, which declined to comment, said in April that cases of grounded A320neo aircraft are declining due to greater capacity at repair shops.
Arizona-based aftermarket supplier KP Aviation said there are several former Spirit Airlines aircraft that are being marketed for disassembly and teardown.
“There’s a lot of money in the engines,” said KP Aviation Chief Commercial Officer Scott Butler. “The airframes, there may not be as much appetite” as more Spirit aircraft come to market, he said.
In February, Dublin-based aviation asset management company EirTrade Aviation and Chicago-based aviation and rail lessor RESIDCO said they would dismantle two near-new Spirit A320neos for parts.
KP Aviation is planning to disassemble five-to-six-year-old planes from an earlier tranche of bright-yellow Spirit aircraft that returned to the market in late 2025.
After engines, Butler said there is also appetite for auxiliary power units, landing gear and flight controls.
BANKRUPTCY COURT ACCELERATES SALE
Earlier this week, Spirit Airlines received permission from a U.S. bankruptcy court to accelerate its liquidation plan, including expedited sales of aircraft.
Spirit’s fleet totals as of May included 114 Airbus A320‑family aircraft, of which 66 are leased.
According to court filings, the carrier has 17 GTF engines which are owned by lessors. Lessors also own about 30 planes with GTF engines, according to a court filing.
However, these planes will not hit the market for at least a few months, Butler said, as the lessors compile technical information about the assets.
(Reporting by Allison Lampert in Montreal and Doyinsola Oladipo in New York; Additional reporting by Dietrich Knauth in New York; Editing by Matthew Lewis)
Comments