AerCap sees tight jetliner market, places big engine order

The head of aircraft leasing giant AerCap predicted that tightness in global jet markets would last through the rest of the decade, fuelled by supply chain issues and conservatism on production among engine makers. Demand for air travel has rebounded since the pandemic, while planemakers are struggling to get back to production levels seen before the health crisis disrupted supply chains, helping to push up airfares. "I believe it will take until the end of the decade before the airframers and the supply chain get together and work it out; that will be 2030, I suspect," CEO Aengus Kelly told a company investor event on Wednesday.<br/>He was speaking after AerCap gambled on continuing bottlenecks in MRO or repair shops by agreeing to buy 150 new spare LEAP engines from French-U.S. venture CFM, which powers all Boeing and some Airbus narrow-body jets. The engines will be managed by Shannon Engine Support, a joint-venture between AerCap and France's Safran, which co-owns CFM along with GE Aerospace. Shortages of spare engines, especially those made by CFM rival Pratt & Whitney, have forced airlines to ground jets while waiting for repair slots, which are already scarce due to faster than expected wear-and-tear in harsh climates.<br/>