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Spirit Airlines' grounding may help to ease shortages of engines in a tight market

Analysts and industry executives say that the recent grounding by 'Spirit Airlines', a U.S. low-cost carrier, could ease shortages of RTX next-generation spare engines required to keep Airbus single aisle jets in service. Spirit Airlines ceased operations of its 'all-Airbus' fleet on May 1, due to high fuel prices. ?Its bankruptcies are leading to new cases of A320neos that were dismantled and sold for parts. This trend had been happening in the industry because of a severe shortage of RTX Pratt & Whitney Geared Turbofan Engines.

Fuel-efficient GTF engines often make the A320neo aircraft more attractive than their aircraft.

Austin Willis of Willis Lease Finance Corp said that some GTF engines are being removed from Spirit A320 airframes to be leased to customers for support of aircraft on the ground. He added that the leasing rates of GTF engines had not decreased.

This is a temporary measure to reduce the imbalance between supply and demand.

Hundreds of A320neo aircraft have been grounded due to long wait times for engine repairs and inspections. A manufacturing problem at Pratt & Whitney also put pressure on GTF's engine production.

GTF engines are used in at least 40 percent of A320neos and compete with CFM International’s LEAP engine for airline contracts. Airbus has complained about GTF shortages in new jets as part of a tug-of-war over who gets priority for scarce engine supplies: assembly lines for new aircraft, or airlines awaiting repairs.

Lars Wagner, Airbus Commercial Aircraft's CEO, declined to comment during an interview with Wednesday on the GTF.

Aircraft Parts Provide Relief

Dick Allewelt, the founder and owner in Germany of Allewelt Aviation Consulting GmbH, said that teardowns on some Spirit aircraft could "have an effect going forward" on the market for spare engines.

Sumisho Air Lease has declined to comment. AerCap, the lessor of late-model jets to Spirit, declined to comment.

RTX declined to comment but said that the number of A320neos grounded is decreasing due to increased capacity in repair shops.

KP Aviation, an Arizona-based supplier of aftermarket parts and components, said that several Spirit Airlines aircraft are currently being offered for disassembly.

Scott Butler, Chief Commercial Officer at KP Aviation, said that there is a lot money to be made in engines. He said that as more Spirit aircraft hit the market, "the airframes" may not have as much demand.

The Dublin-based EirTrade 'Aviation' and Chicago-based Aviation and?raillessor RESIDCO announced in February that they will dismantle and sell two nearly-new Spirit A320neos.

KP Aviation plans to disassemble planes that are five to six years old from an earlier batch of yellow Spirit aircraft which returned to the market at the end of 2025.

Butler stated that there was also a demand for landing gear, auxiliary power units and flight controls.

BANKRUPTCY?COURT EXPEDITES SALE Spirit Airlines was granted permission by a U.S. court of bankruptcy to expedite its liquidation plan earlier this week. This included the sale of aircraft.

Spirit's fleet as of May consisted of 114 aircraft of the Airbus A320 family, 66 of which are leased.

According to court filings, 17 GTF engines are owned by lessors. According to a filing in court, lessors own 30 planes that have GTF engines.

Butler stated that these planes won't be available for sale until at least several months as lessors gather technical data about the assets.

(source: Reuters)