GA Telesis, MTU Aero Engines, The Xtreme Group see little tariff impact

Engine MROs dodged the negative effects of tariffs implemented this year by expanding offerings at certain facilities and maintaining a global network where possible. When the U.S. tariffs , which prompted retaliatory levies from other countries, went into effect this year, Fort Lauderdale, Fla.-based MRO provider GA Telesis worked to lessen their impact by shoring up its U.S. offerings, Chief Commercial Officer David Ellis said during the Dec. 2 Cargo Facts webinar, “Full thrust: Navigating engine challenges in the freighter segment.” [caption id="attachment_57293480" align="aligncenter" width="1160"] GA Telesis operates a major engine maintenance facility in Finland. (Courtesy/GA Telesis)[/caption] Watch the webinar here. “If you had a U.S.-based customer shipping an engine to be overhauled in Helsinki and then imported back to the U.S., you have to pay a tariff on that work that was produced overseas,” Ellis said. “That does create challenges for us. It has also prompted us to accelerate the work scope capabilities of our shop in Wilmington, Ohio.” “Overall, it hasn't been a significant challenge for us yet, but it is something we're watching carefully, because anytime there's uncertainty, it does negatively affect trade.” — David Ellis, CCO at GA Telesis Global presence MTU Aero Engines saw no impact from the tariffs, relying on its global network that includes multiple locations for each of the engine types on which the company works, Les Cronin, vice president of sales and marketing at MTU Aero Engines North America, said during the webinar. He highlighted that MTU has bonded facilities across the Americas, Europe and Asia-Pacific. “To avoid any of this issue, in terms of our concerns on trade, [like] tariffs, for example, we can move engines and platforms around quite easily,” Cronin said. “We're able to move wherever the customer wants to go with their engine.” — Les Cronin, vice president of sales and marketing at MTU Aero Engines North America And, by operating fully bonded facilities, MTU moves engines and parts under T1 customs documentation, which allows goods to pass through a customs union without paying duties until they have reached their final destination, he said. “They come in as a T1 clearance, they stay there and basically we ship them back out as if they were domestic production,” Cronin said. “And that includes China,” where MTU’s facilities are in free trade zones. Diminishing effects Opa-Locka, Fla.-based MRO provider The Xtreme Group experienced some fallout from the tariffs, but that has lessened over time, Jose Fagundo, vice president of sales and business development, said during the webinar. Fagundo said he worked with two customers that had considered buying V2500 engines but pulled back because they would have had to pay about $400,000 in tariffs on a $4 million engine. “It took the engine way beyond their economical or profitable margin.” — Jose Fagundo, vice president of sales and business development at The Xtreme Group “So, it has affected us,” Fagundo said. “I'm seeing less and less of it now, but early in the year, it was definitely something that was prevalent.” Cargo Facts LATAM 2026, the essential event for stakeholders in Latin America, will take place Feb. 10-12 at the Marquis Reforma in Mexico City. Learn more and register by Dec. 26 to take advantage of early-bird pricing. Cargo Facts Asia 2026, the indispensable event for Asia-Pacific stakeholders, will take place March 23-25 at the W Shanghai. Learn more and register by Feb. 6 to take advantage of early-bird pricing. The inaugural Cargo Facts Routes and Airport Conference will take place April 27-28 at the Marriott Al Forsan Abu Dhabi. Learn more and register by March 13 to take advantage of early-bird pricing.

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