IATA Chief Slams Engine OEMs: Supply Chain Failures and Aftermarket Tensions Escalate; India's Engine MRO Gap Highlighted; CFM Expands Open MRO Ecosystem; IndiGo Orders 1,000+ LEAP-1A Engines; BOC Aviation Orders 300 LEAP Engines; GE Hybrid-Electric Milestone; BOC Aviation Orders 220 GTF Engines; HAL-Safran LEAP Component Deal; Raghu Vamsi Superalloy Plant; RH Aero Systems Investment; GE Hybrid Electric Flight at Farnborough; Stellar Aviation Solutions Selects StandardAero TEAMFlex; CFS Aero Selects Ramco for MRO Digitalization; MTU Q2 Earnings Confirm MRO Boom; ORIX Aviation Acquires AerFin in Aftermarket Expansion; Honeywell Q2 Earnings Preview; Planemakers Conserve Windows Due to GKN Incident; ITOCHU Joins ACG in $1.95B Leasing Deal; Lufthansa Technik H1 Results; Delta TechOps MRO Growth; NASCII Initiative; TAT Technologies Q2 Earnings; Honeywell Q2 Earnings Call Highlights; Honeywell Aerospace Lifts 2026 Outlook After Spin-Off; Honeywell Aerospace Cuts 2026 Outlook Due to Supply Chain Constraints

IATA Director General Willie Walsh criticized engine OEMs for supply chain disruptions costing airlines $11B. A new IATA study projects LEAP MRO shop visits will surge from ~600-800 in 2025 to 5,000+ by 2040. IATA set four priorities: visibility, aftermarket competition, tech/AI, and workforce. An op-ed reframes the MRO skills gap as a knowledge transfer problem, with 41% of FAA mechanics over 60, and highlights NAVAIR E-Drill as a solution. Safran inaugurated a new LEAP MRO facility in Querétaro, Mexico, targeting 350 shop visits/year by 2030 and 450 jobs, part of a €1B global network expansion. GE Aerospace reported 650+ engine orders, 93% order growth, $1B US investment, and 39% aftermarket services growth. GE's Q2 earnings beat with raised guidance confirms supply constraints as the bottleneck; LEAP shop visits growing 25% annually through 2030. Today's reading added: GE Aerospace reported 27% commercial services growth, record shop visit output, and 41% LEAP delivery increase, reinforcing the structural aftermarket boom. GE Aerospace also celebrated a historic hybrid electric flight at Farnborough, a technology milestone. GATES USA SPAH inducted its first GEnx engine, signaling independent MRO capacity expansion for next-gen widebodies. New data from Locatory.com shows June parts demand shifting from engine rotating parts to accessories and electrical systems, with persistent GE90 FADEC scarcity and a new helicopter parts bottleneck, confirming structural supply constraints. TAT Technologies secured $45M in long-term MRO contracts for APUs and heat exchangers, and expanded its Honeywell APU partnership, becoming sole global distributor for 331-200/250 parts with extended MRO licenses to 2036. Sentry acquired AirStart to bolster regional parts distribution. Airbus's 2026-2045 Global Market Forecast projects 42,060 new aircraft demand, reinforcing the long-term MRO growth narrative. MTU Maintenance opened an expanded Fort Worth engine facility and launched LEAP-1B program, adding North American MRO capacity. Setna iO acquired its first A320neo for US teardown, signaling aftermarket expansion for next-gen narrowbodies and USM demand. A new article on India's domestic aviation maintenance expansion highlights the engine MRO gap: shop visits growing from 800 to 4,000 by 2040, near-zero domestic repair rate, and regulatory barriers (EASA bilateral). This reinforces the structural MRO deficit in India and the need for partnerships like Air India-SIAEC. Additionally, Airbus and Boeing are resorting to Antonov An-124 airlift for large structures (A350 panels, 767 fuselages), highlighting supply chain logistics fragility and the just-in-time vs. resilience trade-off, with MRO implications as delayed new deliveries keep older fleets flying longer. A new engine maintenance trends article provides granular data: PW1100G at 95% utilization despite improved throughput, legacy narrowbody engines (CFM56, V2500) still absorbing capacity, LEAP entering a more active maintenance phase, and trader activity accelerating asset churn, all reinforcing the dual-generation pressure on the MRO ecosystem. Today's reading included an investment thesis on GE Aerospace that reinforces the aftermarket boom and structural MRO crisis. A new CFM press release announces $1B GE + €1B Safran investment in open MRO ecosystem, new facilities in India and China (SSAMC), HPT durability kit, and reverse bleed system, directly addressing the LEAP shop visit surge and IATA's criticism. Today's new reading: IndiGo and CFM signed an MoU for 1,000+ LEAP-1A engines to power 510 A320neos, plus MRO facility support – the largest single LEAP order ever, reinforcing India's engine MRO demand and the structural aftermarket boom. Ontic and CFS Aero partnered to expand long-term support for legacy engine and APU, addressing the structural MRO challenge of OEMs shifting focus to next-gen propulsion. Today's new reading (July 13): BOC Aviation ordered up to 300 LEAP engines, its largest ever engine transaction, signaling strong lessor confidence in narrowbody growth and LEAP aftermarket. StandardAero signed a LEAP LeaseTEAM agreement with Avolon, expanding independent MRO capacity for next-gen narrowbodies. AIP Capital and Bridgepoint ordered 11 LEAP-1B spare engines, reinforcing investor confidence. Lufthansa Technik secured a CFM56-5B shop visit contract with Cebu Pacific, highlighting ongoing legacy engine demand. Turkish Technic expanded its GE Aerospace MRO partnership (niche). These developments further validate the structural aftermarket boom and the IATA/OEM tensions narrative. Today's new reading (July 14): GE Aerospace achieved a hybrid-electric test at 30,000 ft, a technology milestone that reinforces its innovation and aftermarket strength. BOC Aviation ordered 220 GTF engines, adding to the lessor engine order momentum and narrowbody MRO demand. Embraer-Mubadala MRO and R&D deal expands MRO capacity and workforce development, though not Asia-specific. Nasmyth acquisition by Indian Sigma Advanced Systems signals supply chain consolidation in civilian aerospace components. Today's new reading (July 19): HAL and Safran strengthened their long-term LEAP engine components agreement, reinforcing India's growing role in the LEAP supply chain and supply chain localization in India. Today's new reading (July 24): Raghu Vamsi Aerospace announced a ₹600 crore superalloy manufacturing facility in Telangana, India, with 5,000-tonne capacity, further deepening India's aerospace materials self-reliance and supply chain localization. Today's new reading (July 25): Capitol Meridian Partners made a strategic investment into RH Aero Systems, a support equipment provider for major OEMs, signaling continued investor confidence in the MRO and aftermarket ecosystem. Today's new reading (July 27): GE Aerospace celebrated a historic hybrid electric flight at Farnborough, reinforcing technology leadership and aftermarket strength. Today's new reading (July 28): Stellar Aviation Solutions selected StandardAero's TEAMFlex CFM56-7B engine exchange programme, reinforcing the shift towards asset-light MRO strategies and flexible engine support amid capacity constraints, and highlighting India's growing role in engine support. Today's new reading (July 30): CFS Aero selected Ramco Aviation Software to digitise engine and APU MRO operations, adding to the MRO digitalization trend. Today's new reading (August 1): MTU Aero Engines Q2 earnings confirm structural MRO boom: 24% commercial MRO revenue growth, 40% PW1100GTF output increase, and powder-metal AOG resolution by end-2026, reinforcing the IATA/OEM tensions narrative. Today's new reading (August 10): ORIX Aviation to acquire AerFin in aftermarket expansion, signaling continued consolidation in the aftermarket with a major Japanese lessor moving into USM and parts, aligning with the structural MRO boom. Today's new reading (August 11): Honeywell Aerospace Q2 earnings preview adds context to aftermarket strength. Planemakers are taking steps to conserve aircraft windows due to a GKN factory incident, highlighting lingering supply chain weaknesses that affect both OEM production and aftermarket. Today's new reading (August 13): A new aerospace window shortage due to GKN factory shutdown, with Boeing rationing replacements, directly impacts MRO operations and new production. ORIX Aviation's acquisition of AerFin is a clear signal of aftermarket consolidation. ITOCHU joins ACG in a $1.95B leasing deal, reinforcing lessor confidence and aftermarket demand. Today's new reading (August 14): Lufthansa Technik H1 results confirm structural MRO boom with 11% revenue growth to €4.4B, and €700M+ investment in Portugal and Philippines (1,200 jobs), directly supporting Asia-Pacific MRO capacity expansion. Delta TechOps charts global MRO growth with IndiGo CFM56-5B deal and GTF capacity ramp (400/year by 2030), reinforcing aftermarket competition in India. Today's new reading (August 15): The NASCII initiative aims to strengthen US aerospace supply chain integrity, addressing counterfeit parts and traceability, adding to the supply chain disruption narrative. TAT Technologies Q2 earnings reinforce the structural aftermarket boom with record $650M backlog and 23% revenue growth, confirming supply chain constraints persist. Today's new reading (August 15, second batch): Honeywell Aerospace Q2 earnings call highlights confirm the supply chain bottleneck is real—5% growth but guidance cut, with castings and forgings still constrained. The IndiGo win (largest selectable equipment deal ever) is a massive Asia signal, reinforcing India's fleet growth and aftermarket demand. The 2027 improvement timeline suggests near-term pain persists. Today's new reading (August 16): Honeywell Aerospace lifts 2026 outlook after spin-off, with 5% sales growth and 8% commercial aftermarket rise, reinforcing the structural aftermarket boom and post-spin-off momentum. Today's new reading (August 17): Honeywell Aerospace cuts 2026 outlook due to supply chain constraints, a concrete signal that the structural MRO bottleneck persists. Another article confirms Honeywell aftermarket up 8% but supply chain can't keep pace, reinforcing the IATA-OEM tensions narrative. A Cassel Salpeter report on aircraft and engine shortages provides additional data: $11B supply chain cost, 17,000 aircraft backlog, MRO spending growth to $193B by 2036, engine MRO at $103B, and USM/PMA growth.