Private Jet Owners Leasing Engines for Profit

Due to the recent supply shortage in the aircraft engine market, private jet owners are using this opportunity to generate profit by leasing their engines to individuals and organisations facing long waiting periods for engine delivery or repair. 

Labour and parts shortages have plagued the aviation industry since the onset of the COVID-19 pandemic, resulting in delays in the delivery of engines and aircraft across both private and commercial aviation sectors. 

Experts suggest that this niche has emerged because private jet owners are often very attached to their aircraft, which often feature customised interiors including gold and marble bathroom fixtures, as well as large cinema spaces. As a result, they are content to lease out the engine while retaining the jet. 

This new trend has surprised wealth experts and analysts, who are observing wealthy families profiting from their private jets, which are typically considered depreciating liabilities. Hiring a mid-size jet engine for a few days can cost around $50,000, and the engine could be removed relatively quickly, even overnight. 

Kevin Michaels, Director of AeroDynamic Advisory, said that there is “a well-known issue with the small propulsion engine supply chain”, which is causing delays in maintenance and repairs. He added that business aviation operators typically have small fleets and few spare engines in stock. 

This new niche in aviation has resulted in private jet owners turning a profit, while also catching the industry by surprise.