NASHVILLE, Tenn. — Engine scarcity and cost as well as maintenance backlogs are among the biggest concerns for fleet managers across the airfreight industry.
Speaking at Cargo Facts Symposium today, Challenge Group Chief Commercial Officer Or Zak said during a panel discussion, “It’s really hard to get your hands on any engines at the moment, so that’s pushing the price.
“They have skyrocketed.”
Two years ago, a typical GE engine cost about $10 million, he said. “Today, we are talking about $30 million per engine.”
Fortunately, Zak said, Challenge Group was able to secure engines ahead of their freighter conversions.
“We haven’t had any units sitting on the ground waiting for engines, but there’s definitely the possibility that we may see that in the future,” he said.

Another panelist, Juan Zapata, head of technical at Titan Aviation Leasing, said airfreight companies are stuck.
“Inevitably, you have to pay whatever the market is going to challenge you to pay for it,” Zapata said. “That then increases overall cost when we’re looking at the total conversion cost or the total cost of the aircraft.”
Zapata said these high costs will change the industry.
“What I see … as a very likely possibility is that we’re going to start to see more airframes become more viable as part-outs to be able to retain engines,” he said.
“And what that’s going to do, in effect, is then challenge the feedstock that’s going to be available for commercial as a result of that.”
Waiting for maintenance
Engine shop delays and maintenance setbacks also are adding to operators’ headaches.
“If you are able to get a slot, the lead time within the shop has increased by dozens of days,” Zak said. “We have engines which were supposed to get out of the shop months ago and are still sitting there.”
Another problem is the shrinking number of maintenance technicians, who are getting older.
“There is going to be a significant gap in terms of the new technicians going to the industry that is going to drive other issues,” Zapata said.
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