Industry Analysis
FAA Layoffs Raise Concerns Over Aviation Safety and Trust
The Federal Aviation Administration (FAA) is a cornerstone of the U.S. aviation system, ensuring the safety and efficiency of the national airspace. However, recent layoffs have raised concerns about the agency’s ability to maintain its critical mission. On February 14, 2025, the Trump administration issued an executive order leading to the termination of several hundred probationary employees at the FAA. These layoffs, which targeted workers with less than a year of service, have sparked widespread debate about their impact on aviation safety and public trust.
Among those affected was Jason King, a technician involved in the investigation of the Washington midair collision. King’s dismissal highlights the potential risks of cutting essential personnel. “Aviation safety should never be treated as a budget item that can just be completely cut,” he stated. “Weakening the FAA’s safety efforts threatens public trust and increases the likelihood of future accidents.” This sentiment is echoed by aviation experts who argue that reducing the FAA’s workforce could compromise the agency’s ability to respond to safety challenges effectively.
The layoffs primarily targeted probationary employees, many of whom were military veterans and dedicated public servants. However, there are reports that the net may have been cast wider, affecting veteran employees with years or even decades of experience. These individuals, often in high-ranking positions, were reportedly designated as probationary after promotions, making them vulnerable to reassignment or termination if their new roles did not work out.
This approach has been criticized for its lack of transparency and its potential to undermine the FAA’s mission. David Spero, National President of the Professional Aviation Safety Specialists (PASS), emphasized, “These are not nameless, faceless bureaucrats. They are our family, friends, and neighbors. Many military veterans are among them. It is shameful to toss aside dedicated public servants who have chosen to work on behalf of their fellow Americans.”
The layoffs come at a time when the FAA is already grappling with staffing shortages, particularly in air traffic control centers. The sudden reduction in workforce is expected to increase the workload on remaining employees, further straining an already stretched-thin system.
“Aviation safety should never be treated as a budget item that can just be completely cut. Weakening the FAA’s safety efforts threatens public trust and increases the likelihood of future accidents.” – Jason King
The layoffs at the FAA are part of a larger effort by the Trump administration to reduce the federal workforce. This includes a deferred resignation program that has seen about 75,000 federal employees accept offers to step down in exchange for pay through the end of September. While this strategy aims to streamline government operations, it raises questions about the long-term impact on public services.
Elizabeth Linos, a professor at Harvard’s Kennedy School, noted, “The problem we were facing over the past decades isn’t one of bloat, but of vacancies. Services could degrade if enough federal workers are cut or resign, and Americans would still expect a certain level of service.” This is particularly relevant for the FAA, which plays a critical role in ensuring the safety of millions of air travelers each year. The aviation industry is also undergoing significant transformations, including increased demand for air travel, advancements in digital technologies, and a focus on sustainability. These trends require a skilled and adequate workforce to manage effectively. Reducing the FAA’s workforce could hinder the agency’s ability to implement and manage these technologies, potentially slowing progress in key areas such as air traffic management and safety innovation.
The recent layoffs at the FAA have raised significant concerns about the agency’s ability to maintain its critical mission of ensuring aviation safety. By targeting probationary employees, including many military veterans and dedicated public servants, the Trump administration has sparked a debate about the long-term impact of these workforce reductions. The layoffs come at a time when the FAA is already grappling with staffing shortages and increased demands on its workforce.
Looking ahead, the broader implications of these layoffs extend beyond the FAA to the entire aviation industry. As the industry continues to evolve, with advancements in technology and a focus on sustainability, the need for a skilled and adequate workforce has never been greater. Reducing the FAA’s workforce could hinder the agency’s ability to respond to these challenges, potentially compromising public safety and slowing progress in key areas. The future of aviation safety depends on the FAA’s ability to adapt and thrive in an increasingly complex and demanding environment.
Question: Why were probationary employees targeted in the FAA layoffs? Question: How will these layoffs impact aviation safety? Question: What is the broader context of these layoffs?
Layoffs Hit FAA: A Threat to Aviation Safety?
The Scope of the Layoffs
Broader Implications for the Aviation Industry
Conclusion
FAQ
Answer: Probationary employees, typically those with less than a year of service, were targeted as part of the Trump administration’s efforts to reduce the federal workforce. However, reports suggest that some veteran employees were also affected due to their probationary status after promotions.
Answer: The layoffs could increase the workload on remaining employees, potentially compromising the FAA’s ability to respond to safety challenges effectively. Experts warn that reducing the workforce could increase the likelihood of future accidents.
Answer: The layoffs are part of a larger effort by the Trump administration to reduce the federal workforce. This includes a deferred resignation program that has seen about 75,000 federal employees accept offers to step down in exchange for pay through the end of September.
Industry Analysis
Gallagher Finalizes AssuredPartners Aviation Integration
Arthur J. Gallagher completes integration of AssuredPartners aviation team, expanding global risk capabilities with nearly 600 professionals.
This article is based on an official press release from Arthur J. Gallagher & Co. and additional market data.
Arthur J. Gallagher & Co. (Gallagher) has officially completed the integration of the AssuredPartners aviation and aerospace team into its global practice, a move that significantly reshapes the competitive landscape of aviation insurance. Announced on January 6, 2026, this consolidation follows Gallagher’s $13.45 billion acquisitions of AssuredPartners, which was finalized in August 2025.
According to the company’s announcement, the combined division now employs nearly 600 risk professionals worldwide. The integration is designed to merge Gallagher’s historical strength in large, complex aerospace risks with AssuredPartners’ extensive footprint in the U.S. general aviation sector. The result is a unified entity capable of servicing the entire spectrum of aviation clients, from private pilots and flying clubs to major commercial airlines and aerospace manufacturers.
To manage the expanded portfolio, Gallagher has implemented a new leadership structure that leverages talent from both organizations. The integration creates a dedicated U.S. team comprising 190 colleagues across 10 locations.
Key leadership changes include:
In a statement regarding the merger of talent, Peter Elson, Global CEO of Aviation & Aerospace at Gallagher, emphasized the scale of the new operation:
“We are delighted to bring together the AssuredPartners team with our existing Gallagher aerospace colleagues to create a powerhouse of specialists with unrivalled sector capability. Both teams are market-leading in their own right and this combined team is the largest and strongest group of aviation and aerospace risk professionals anywhere in the world.” The integration is positioned as a strategic alignment of complementary strengths rather than a simple absorption of assets. AssuredPartners has long been recognized for its dominance in the General Aviation (GA) mid-market, serving a high volume of relationship-driven clients. Conversely, Gallagher has established itself as a leader in the complex risk market, handling major cargo operations and commercial carriers.
By consolidating these portfolios, Gallagher aims to offer existing AssuredPartners clients access to broader global resources, including advanced data analytics and claims advocacy. Simultaneously, the unified underwriting strategy is expected to leverage global market relationships to secure more favorable terms for clients across all sectors.
The timing of this integration is critical. The aviation insurance sector is currently navigating a “hard market” characterized by rising premiums and stricter underwriting criteria. These conditions are driven by several factors, including geopolitical tensions, escalating repair costs, and “social inflation”, the trend of rising litigation costs and jury awards. By scaling its operations to nearly 600 professionals, Gallagher is positioning itself to better navigate these headwinds. A larger, consolidated entity has more leverage when negotiating with underwriters, potentially shielding clients from the most severe market fluctuations. Furthermore, this move narrows the gap between Gallagher and its primary global competitors, Marsh and Aon, specifically within the specialized aviation niche.
The acquisition of AssuredPartners, valued at $13.45 billion, stands as the largest acquisition of a U.S. insurance broker by a strategic acquirer in history. J. Patrick Gallagher, Jr., Chairman & CEO, noted the cultural fit at the time of the acquisition:
“AssuredPartners’ entrepreneurial spirit, broad U.S. footprint and middle-market focus make them an ideal merger partner for Gallagher.” With the integration now official, the focus will likely shift to operational execution, particularly in niche sectors such as agricultural aviation and emerging urban air mobility technologies, where the combined expertise of the two firms can be most effectively deployed.
Gallagher Finalizes Integration of AssuredPartners Aviation, Creating Global Risk Powerhouse
Leadership Appointments and Organizational Structure
Strategic Synergies and Market Impact
AirPro News Analysis: Navigating a Hard Market
Sources
Photo Credit: Envato
Industry Analysis
Smiths Group Agrees £2 Billion Sale of Detection Division to CVC
Smiths Group sells Smiths Detection to CVC Capital Partners for £2 billion as part of its shift to industrial engineering focus.
This article is based on an official press release from Smiths Group plc.
Smiths Group plc has officially announced the sale of its Smiths Detection division to funds advised by CVC Capital Partners. The transaction, which values the division at an enterprise value of £2.0 billion, represents the final major step in the company’s strategic restructuring plan initiated in early 2025. By divesting its security screening business, Smiths Group aims to transition into a focused industrial engineering entity.
According to the announcement made on December 3, 2025, the deal is expected to generate approximately £1.85 billion in net cash proceeds for the Group after transaction costs and customary adjustments. The completion of the sale is anticipated in the second half of 2026, pending regulatory approvals and necessary consultations with the Smiths Detection France SAS works council.
The agreed price of £2.0 billion represents a significant valuation for the threat detection unit. Based on financial results for the fiscal year ended July 31, 2025, the transaction implies a multiple of 16.3 times the division’s headline operating profit of £122 million, and 12.5 times its headline EBITDA of £160 million. For the same fiscal period, Smiths Detection reported revenue of £963 million and total assets of £1,650 million.
Smiths Group leadership has indicated that a “large portion” of the net proceeds will be returned to shareholders, with the remainder allocated to organic and inorganic growth initiatives for the company’s retained businesses. The Board stated that the valuation fully reflects the prospects of the Detection business, a sentiment echoed by market analysts who viewed the price as being at the upper end of expectations.
This divestment completes a broader transformation for Smiths Group. Following the separate sale of Smiths Interconnect to Molex for £1.3 billion, announced in October 2025, the Group is streamlining its portfolio to focus on two primary divisions:
In its official statement, the company described this move as a pivot toward becoming a “premium industrial engineering company.” The restructuring is designed to simplify the Group’s operations and improve capital allocation efficiency.
“The transaction… marks the final step in a major strategic restructuring initiated in January 2025 to transform Smiths Group.”
, Smiths Group Announcement
For CVC Capital Partners, the acquisition secures a global market leader in aviation security and threat detection technologies. Smiths Detection is widely recognized for its x-ray scanners, CT scanners, and trace detection systems used in airports, ports, and urban security environments globally. CVC has characterized the acquisition as a platform for long-term value creation. The firm highlighted Smiths Detection’s strong market position and its advanced digital capabilities, including automated detection algorithms, as key drivers for the investment. The asset is expected to complement CVC’s existing portfolio in the UK and the aerospace and defense sectors, which includes investments such as Ontic.
The sale of Smiths Detection appears to be a direct response to long-standing investor pressure to resolve the “conglomerate discount” that has historically weighed on Smiths Group’s share price. By separating its diverse business lines, the Group has unlocked a combined enterprise value of £3.3 billion through the disposals of Detection and Interconnect.
Market reaction suggests the strategy is working. Shares in Smiths Group rose approximately 2-3% following the announcement. Analysts at Panmure Liberum noted that the £2.0 billion price tag was at the “top end” of market expectations, which had ranged between £1.3 billion and £2.0 billion. This successful valuation, combined with the earlier sale of Interconnect, validates the Board’s decision to break up the conglomerate structure in favor of a streamlined industrial focus.
When will the transaction close? What will Smiths Group do with the money? Who are the advisors on the deal?
Smiths Group Agrees to £2.0 Billion Sale of Detection Division to CVC
Transaction Financials and Valuation
Strategic Pivot to Industrial Engineering
CVC Capital Partners’ Acquisition Strategy
AirPro News Analysis
Frequently Asked Questions
The sale is expected to complete in the second half of 2026, subject to regulatory clearances and consultations.
The company intends to return a large portion of the £1.85 billion net proceeds to shareholders, with the rest used to invest in the growth of its remaining divisions, John Crane and Flex-Tek.
Goldman Sachs and J.P. Morgan are acting as financial advisors to Smiths Group, with Freshfields providing legal counsel. Barclays and Latham & Watkins are advising CVC Capital Partners.
Sources
Photo Credit: Smiths Detection
Industry Analysis
Turkish Airlines Considers Airbus Over Boeing 737 MAX Amid Engine Talks
Turkish Airlines may switch from Boeing 737 MAX to Airbus due to engine supply negotiations with CFM International amid global supply chain challenges.
The commercial aviation sector is no stranger to high-stakes negotiations, but recent developments involving Turkish Airlines, Boeing, and engine manufacturer CFM International have brought renewed attention to the complex dynamics shaping global fleet decisions. At the heart of the matter is Turkish Airlines’ tentative order for up to 150 Boeing 737 MAX aircraft, a deal that now hangs in the balance as the airline considers switching to Airbus if engine supply terms are not met.
This potential shift is significant not only for the parties directly involved but also for the broader aviation industry. It highlights the influence of supply chain pressures, the strategic leverage that large airlines can wield, and the evolving landscape of aircraft and engine procurement. By examining the facts, perspectives, and industry context, we can better understand the ramifications of Turkish Airlines’ public ultimatum and what it signals for future fleet strategies.
In late September 2025, Turkish Airlines announced a major agreement with Boeing, including a firm order for 75 Boeing 787 Dreamliners and an intention to purchase up to 150 Boeing 737 MAX aircraft. This deal is a key component of Turkish Airlines’ “Vision 2033” strategy, which aims to dramatically expand its fleet and passenger numbers by the airline’s centennial year.
However, the finalization of the Boeing 737 MAX order has always been contingent on reaching a separate agreement with CFM International, the sole engine supplier for the 737 MAX. The negotiations have reportedly centered on the cost and maintenance terms for the engines, with Turkish Airlines seeking more favorable conditions.
This is not the first time Turkish Airlines has made headlines for its ambitious fleet plans. In December 2023, the airline placed a substantial order with Airbus for 355 aircraft, including 250 A321neos. This existing relationship with both major manufacturers gives Turkish Airlines considerable leverage as it negotiates the terms of its future fleet.
The crux of the current standoff lies with CFM International, a joint venture between GE Aerospace and Safran. As the exclusive engine supplier for the Boeing 737 MAX, CFM holds a pivotal role in the negotiations. Turkish Airlines Chairman Ahmet Bolat has publicly stated that if CFM does not offer “feasible economical terms,” the airline will consider switching its order to Airbus, which provides a choice of two engine suppliers for its A320neo family: CFM International and Pratt & Whitney.
This dual-supplier model gives Airbus a strategic advantage, allowing airlines to negotiate better terms and reduce dependency on a single supplier. For Turkish Airlines, the ability to choose between engine manufacturers is a significant bargaining chip, especially in an environment where supply chain disruptions have increased costs and delays.
The situation is further complicated by broader industry pressures. Engine manufacturers are facing production and maintenance backlogs, leading to longer wait times and higher costs for airlines. These challenges have made the terms of engine supply agreements more critical than ever in the decision-making process for new aircraft orders. “If CFM comes to feasible economical terms then we are going to sign with Boeing. If CFM continues its stance we’ll change to Airbus. With Airbus I have choices.”, Ahmet Bolat, Chairman, Turkish Airlines
Turkish Airlines operates one of the largest and most diverse fleets in the world, with aircraft from both Airbus and Boeing. As of mid-to-late 2025, the airline’s fleet consists of approximately 382 to 440 aircraft, including a mix of narrow-body and wide-body models. The breakdown includes significant numbers of Airbus A319, A320, A321, and A321neo jets, as well as Boeing 737-800, 737-900ER, 737 MAX 8, and 737 MAX 9 aircraft.
The tentative order for up to 150 Boeing 737 MAX aircraft represents Turkish Airlines’ largest potential single-aisle order from Boeing. However, should negotiations with CFM International fail, the airline is expected to turn to the Airbus A320neo family to fulfill its narrow-body requirements. This would further strengthen Turkish Airlines’ partnership with Airbus, following the December 2023 order for 220 Airbus aircraft.
The airline’s “Vision 2033” strategy is ambitious, aiming for a fleet of over 800 aircraft and the capacity to carry 170 million passengers annually by its 100th anniversary. These targets underscore the importance of securing reliable, cost-effective engine supply agreements to support sustained growth.
The ongoing negotiations between Turkish Airlines, Boeing, and CFM International are set against a backdrop of significant challenges in the global aviation supply chain. Engine manufacturers, including both CFM and its competitor Pratt & Whitney, have struggled to keep up with demand, resulting in production delays and maintenance backlogs.
These disruptions have led to increased costs for airlines, as the price of both new and used engines has risen and wait times for repairs have grown. In response, many airlines have been forced to keep older, less fuel-efficient aircraft in service for longer periods, which further drives up maintenance expenses.
The limited number of engine suppliers for new-generation aircraft has created a seller’s market, giving manufacturers significant leverage in pricing and contract negotiations. Airlines seeking to expand or modernize their fleets must navigate these constraints while balancing cost, reliability, and long-term operational needs.
The high demand for new, fuel-efficient engines and the limited number of suppliers has given manufacturers significant leverage in pricing and contract negotiations.
Turkish Airlines has taken a proactive stance, publicly leveraging its position as a major customer to push for more favorable engine supply terms. By highlighting the flexibility offered by Airbus’s dual engine supplier model, the airline is signaling its willingness to pivot if necessary to achieve its strategic objectives.
Boeing and CFM International, meanwhile, have declined to comment on the specifics of the negotiations, adhering to standard industry practice during sensitive commercial discussions. Airbus has also refrained from making official statements regarding this particular situation but has previously emphasized its strong relationship with Turkish Airlines, especially after the large order in December 2023. The outcome of these negotiations will be closely watched by other airlines and industry stakeholders, as it may set a precedent for future aircraft and engine procurement strategies in an era of ongoing supply chain volatility.
The standoff between Turkish Airlines and CFM International is emblematic of broader trends in the aviation industry. As airlines seek to modernize their fleets and reduce operating costs, the terms of engine supply agreements have become a critical factor in aircraft selection. The ability to choose between multiple engine suppliers, as offered by Airbus for its A320neo family, can provide airlines with greater bargaining power and flexibility.
At the same time, the current supply chain disruptions have underscored the need for resilience and adaptability in fleet planning. Airlines must weigh the risks and benefits of different procurement strategies, taking into account not only the upfront costs but also long-term maintenance and operational considerations.
As Turkish Airlines evaluates its options, the industry will be watching to see whether this high-profile negotiation leads to broader changes in how airlines approach engine and aircraft procurement in the years ahead.
Turkish Airlines’ public consideration of switching its Boeing 737 MAX order to Airbus underscores the growing importance of engine supply terms and flexibility in fleet planning. The airline’s willingness to leverage its purchasing power reflects the shifting dynamics of the aviation industry, where supply chain disruptions and rising costs have made strategic procurement decisions more complex than ever.
Looking ahead, the outcome of these negotiations could influence not only Turkish Airlines’ future fleet composition but also broader industry practices. As airlines continue to navigate supply chain challenges and seek greater leverage in their dealings with manufacturers and suppliers, the balance of power in the aviation sector may continue to evolve.
What prompted Turkish Airlines to consider switching its Boeing 737 MAX order to Airbus? What are the alternatives if the Boeing 737 MAX order does not proceed? How does the engine supplier situation differ between Boeing and Airbus? How large is Turkish Airlines’ current fleet? What is the broader industry context for these negotiations?
Turkish Airlines’ Potential Switch from Boeing 737 MAX to Airbus: An Industry Analysis
Background and Significance of the Turkish Airlines Order
The Engine Supply Dilemma
Fleet Composition and Growth Strategy
Industry Context: Supply Chain Pressures and Strategic Leverage
Perspectives from Key Stakeholders
Broader Implications for the Aviation Industry
Conclusion: Key Takeaways and Future Outlook
FAQ
The decision is primarily driven by negotiations with engine supplier CFM International over the cost and terms of engine supply and maintenance. If favorable terms cannot be reached, Turkish Airlines may switch to Airbus, which offers more flexibility in engine supplier choice.
Turkish Airlines is likely to order aircraft from the Airbus A320neo family, such as the A320neo or A321neo, to fulfill its narrow-body fleet requirements.
Boeing’s 737 MAX is exclusively powered by engines from CFM International, whereas Airbus offers a choice between CFM International and Pratt & Whitney for its A320neo family. This gives airlines more leverage and flexibility when negotiating terms.
As of mid-to-late 2025, Turkish Airlines operates a fleet of approximately 382 to 440 aircraft, with a mix of Airbus and Boeing models.
The aviation industry is currently facing significant supply chain disruptions, particularly in engine production and maintenance, leading to increased costs and delays for airlines worldwide.
Sources
Photo Credit: Turkish Airlines
-
Business Aviation3 days agoBombardier Responds to U.S. Tariff and Certification Threats
-
Business Aviation3 days agoUS Threatens to Decertify Bombardier Jets in Canada Trade Dispute
-
Business Aviation7 days agoBombardier Challenger 600 Jet Crashes at Bangor Airport Amid Winter Storm
-
Technology & Innovation6 days agoGE Aerospace Tests Battery-Less Hybrid Electric Engine for Narrowbody Jets
-
Aircraft Orders & Deliveries6 days agoAdani and Embraer to Launch India’s First Private Regional Jet Assembly Line