The global aviation sector is currently navigating a severe squeeze between surging passenger demand and chronic supply chain constraints. With Original Equipment Manufacturers (OEMs) like Boeing and Airbus facing persistent delays in delivering new-generation aircraft and engines, airlines are being forced to operate aging fleets far longer than originally anticipated. This dynamic has created a significant bottleneck in maintenance facilities and is driving up operational costs across the industry.

To mitigate the financial strain of maintaining older aircraft, operators are increasingly pivoting away from traditional, heavy engine overhauls. According to a recent industry outlook authored by Asim Chalise, VP of MRO Sales at AerFin, airlines are adopting “MRO Lite” strategies. This approach focuses on quick-turn, targeted maintenance and module swaps to keep planes flying safely while minimizing capital expenditure.

By utilizing “green-time” components, partially used but highly serviceable parts, airlines are finding a vital bridge to sustain operations until OEM delivery schedules stabilize. However, as the industry leans heavily into this secondary market, questions are emerging about the long-term sustainability of the green-time supply chain.

The Economic Squeeze and the Shift to MRO Lite

The Exorbitant Cost of Aging Fleets

Passenger traffic continues to climb, with recent International Air Transport Association (IATA) figures cited by AerFin showing a 5.3 percent year-over-year increase globally. To meet this demand amidst the delivery gap, airlines must keep older aircraft in service, which inherently drives up maintenance activity, parts consumption, and workscope escalation.

A full engine overhaul represents a massive capital investment that many airlines are reluctant to make on aging assets. According to AerFin’s data, a full shop visit for a CFM56-7B, one of the most common commercial engines powering the Boeing 737 NG, currently costs between $5 million and $7 million. Even a limited performance restoration on this engine type approaches $3.5 million. For airlines already committed to spending billions on delayed new aircraft, funding second or third heavy shop visits for legacy engines is financially unviable.

Targeted Quick-Turn Solutions

Instead of full overhauls that effectively “reset the clock” on an engine’s lifespan, operators are opting for “quick-turn” or “hospital shop” visits. These targeted maintenance events focus strictly on what is absolutely necessary to keep the engine safely on-wing.

A core component of this strategy is the module swap. Operators are increasingly replacing Life Limited Parts (LLP)-expired modules with green-time units that still possess approved flying hours. In his industry outlook, Chalise notes that this method treats the engine as a continued-time asset, extracting maximum remaining value at the lowest possible cost and turnaround time.

“Module swaps are an effective short-term solution to buy time until OEM deliveries stabilize.”

, Asim Chalise, VP MRO Sales, AerFin (via company press release)

The “Green-Time” Economy and Material Supply

The Role of Agile MRO Providers

Smaller, agile Maintenance, Repair, and Overhaul (MRO) providers are uniquely positioned to handle this targeted workscope efficiently, as they do not carry the massive overhead costs associated with full overhaul programs. AerFin, a global aviation asset specialist, has tailored its operations to meet this specific demand.

The company operates a state-of-the-art 116,000-square-foot facility in Caerphilly, Wales, UK. The facility, which is EASA, CAA, and FAA Part 145-approved, features 25 maintenance bays and has the capacity to run eight engine lines simultaneously. AerFin currently provides quick-turn services for highly utilized engine platforms, including the CFM56, CF34-8, and RB211, and plans to expand its capabilities to include the V2500 platform in 2026.

Securing the Supply Chain

While MRO Lite offers immediate financial relief, Chalise highlights a critical forward-looking vulnerability: the finite supply of green-time modules. If the entire industry pivots to module swaps, the availability of Used Serviceable Material (USM) could become a new bottleneck.

To insulate its customers from this supply chain risk, AerFin has aggressively expanded its material access. According to the company’s release, AerFin has acquired 104 engines since 2021 to ensure a reliable supply of green-time modules. This scale has allowed the company to successfully complete over 100 Engine MRO Lite services since the program’s launch in May 2021.

AirPro News analysis

We observe that the rapid adoption of MRO Lite strategies underscores a fundamental shift in how airlines manage late-life assets. While module swaps and quick-turn maintenance are highly effective stopgaps, they are not a permanent substitute for actual fleet renewal. As the industry continues to consume green-time engines, the premium on high-quality Used Serviceable Material (USM) will inevitably rise, potentially squeezing the profit margins of the very cost-saving measures airlines are currently relying on.

Furthermore, this trend requires careful navigation of lease return conditions. Lessors and operators must collaborate closely, as quick-turn maintenance alters the traditional lifecycle tracking and residual value of engine assets. Once OEM deliveries finally catch up and the market normalizes, we anticipate a recalibration of the MRO sector. However, the proven cost-efficiency and sustainability benefits of module swaps may permanently alter heavy maintenance schedules for legacy platforms.

Frequently Asked Questions

What is “MRO Lite”?

MRO Lite refers to targeted, quick-turn maintenance strategies, such as module swaps and hospital shop visits, designed to keep aircraft engines safely operational without the need for a full, expensive overhaul.

Why are airlines avoiding full engine overhauls?

Due to delays in new aircraft deliveries, airlines are forced to fly older planes longer. A full overhaul on an aging engine (like the CFM56-7B) can cost up to $7 million. Airlines prefer to avoid this massive capital expenditure on older assets by using cheaper, targeted maintenance.

What are “green-time” modules?

Green-time modules are partially used engine components that still have a significant number of approved flying hours or cycles remaining before they require replacement or overhaul.

Sources

• AerFin, Official Press Release

This article is based on an official press release from International Aerospace Coatings (IAC).

International Aerospace Coatings (IAC) has announced a significant expansion of its global operations by securing a long-term lease for two hangars at Safi Aviation Park in Malta (MLA). According to a recent company press release, the new facilities include both a widebody and a narrowbody hangar, marking a strategic enhancement of the company’s aircraft painting and coating infrastructure.

The widebody facility is notably equipped to accommodate aircraft of all sizes, up to and including the Airbus A380. This move is part of a broader growth strategy for IAC, which aims to bolster its capacity to serve a growing roster of new and existing aviation clients worldwide.

Global Expansion Strategy

The addition of the Malta location is not an isolated development. The official press release notes that IAC is currently undertaking several other hangar expansion projects across the globe, specifically in Texas, United States, and Teruel, Spain.

With these concurrent projects, IAC projects its global network of hangar facilities will increase from the current 19 locations to a total of 25 facilities in the coming months. This rapid scaling underscores the company’s position as a leading provider in the commercial and VIP aircraft painting sector.

AirPro News analysis

We observe that expanding into Malta, a well-established Mediterranean aviation maintenance hub, provides IAC with a strategic geographic advantage for serving European, Middle Eastern, and African operators. Furthermore, securing a facility capable of handling the A380 indicates a strong commitment to servicing the heavy widebody market, which requires specialized, large-scale infrastructure that remains relatively scarce in the region.

Leadership and Local Partnerships

Establishing operations at Safi Aviation Park required close collaboration with local authorities. In its statement, IAC extended its gratitude to the Government of Malta, INDIS (Industrial and Innovative Solutions), and Malta Enterprise. The company also specifically recognized the support of Silvio Schembri, Malta’s Minister for the Economy, Enterprise and Strategic Projects.

Company leadership emphasized the strategic value of the new Mediterranean base. Martin O’Connell, Chief Executive Officer of IAC, highlighted the importance of the expansion in meeting the company’s operational demands and maintaining service quality.

“We see Malta as a strategically important location and this expansion will help address our needs for additional capacity. I very much look forward to commencing operations at this new facility, building new relationships and ensuring we continue to deliver the same best-in-class quality service,” stated Martin O’Connell, CEO of IAC, in the press release.

Frequently Asked Questions

Where is IAC’s new facility located?

The new widebody and narrowbody hangars are located at Safi Aviation Park in Malta (MLA).

What size aircraft can the new Malta facility accommodate?

According to the company, the widebody hangar can accommodate all aircraft up to and including the Airbus A380.

How many facilities will IAC operate globally?

With expansions currently underway in Malta, Texas, and Spain, IAC expects its global network to grow from 19 to 25 facilities in the coming months.

Sources

• International Aerospace Coatings (IAC)

On April 1, 2026, global aviation consultancy ACC Aviation announced the successful remarketing and sale of six General Electric CF34-8C engines, along with their associated Life-Limited Parts (LLPs). The transaction was executed on behalf of OÜ Transpordi Varahaldus (TVH), the state-owned transport asset management company of Estonia.

The sale marks a significant milestone in the recovery of aviation assets following the collapse of the Estonian operator Xfly, a subsidiary of Nordic Aviation Group (Nordica). Following the airline’s bankruptcy, TVH was forced to repossess the engines and subsequently partnered with ACC Aviation to navigate the complex remarketing process.

According to the official press release, the six engines were successfully placed with two specialized aviation firms. Regional One acquired two of the engines and their associated LLPs, while KP Aviation secured the remaining four powerplants. We note that this transaction highlights the ongoing reliance on the secondary market to maintain regional fleets amid global supply chain constraints.

The Mechanics of the Asset Recovery

Executing the Remarketing Strategy

Recovering and monetizing aviation assets in a distressed scenario requires a highly technical and time-sensitive approach. According to the provided transaction details, ACC Aviation managed the process end-to-end for TVH. This included market engagement, commercial negotiation, technical acceptance, and final delivery of the assets.

To ensure a profitable recovery for the Estonian state-owned entity, the consultancy firm deployed a specific valuation and sales strategy. As detailed in the transaction report:

ACC Aviation utilized a data-driven pricing strategy underpinned by a Current Market Value (CMV) analysis. They executed a targeted Request for Proposal (RFP) process aimed at a select group of qualified buyers to ensure a swift and profitable recovery.

The Buyers: Regional One and KP Aviation

The successful bidders in the RFP process are both established players in the aviation aftermarket. Regional One, which purchased two of the CF34-8C engines, is a repeat customer of TVH. Based on corporate data, Regional One previously acquired Bombardier CRJ900 aircraft from the Estonian state company in August 2025. KP Aviation, a global supplier of aftermarket materials specializing in the acquisition of retired or repossessed assets, strategically secured the remaining four engines.

Background: The Collapse of Nordica and Xfly

Repossessing Stranded Assets

To understand the necessity of this transaction, we must look back at the catalyst: the financial collapse of Estonia’s national carrier operations. The six CF34-8C engines were previously leased to Nordic Aviation Group and operated by its subsidiary, Regional Jet OÜ, which traded as Xfly.

Following a failed privatization attempt, Nordica and Xfly ceased operations and filed for bankruptcy in November 2024. Public broadcasting reports from ERR News confirm that the Harju District Court officially declared the bankruptcy in January 2025. This legal action forced TVH to repossess its leased aviation assets, which included a fleet of seven Commercial-Aircraft and the spare CF34-8C engines.

TVH, founded by the Republic of Estonia in September 2015, had originally acquired eight CF34-8C5A1 jet engines in December 2022 to support its leased fleet. The April 2026 sale facilitated by ACC Aviation represents the final stages of TVH liquidating the assets left stranded by the Xfly bankruptcy.

AirPro News analysis

We observe that the successful placement of all six CF34-8C engines underscores a remarkably robust secondary market for regional aircraft powerplants. As global supply chain bottlenecks continue to hamper the production of new aircraft and replacement parts, operators and lessors are increasingly turning to the aftermarket to keep existing regional fleets, such as the Bombardier CRJ900, operational.

Furthermore, this transaction serves as a prime case study in complex asset recovery. It highlights the critical need for government-backed entities like TVH to partner with specialized aviation consultancies. Navigating technical handovers, legal hurdles from bankruptcies, and time-sensitive market conditions is essential to preserving taxpayer value when national airline ventures fail.

Frequently Asked Questions

What type of engines were sold in this transaction?

The transaction involved six General Electric CF34-8C engines and their associated Life-Limited Parts (LLPs). These engines are commonly used to power regional jets, such as the Bombardier CRJ900.

Who purchased the repossessed engines?

The engines were acquired by two companies: Regional One purchased two engines, and KP Aviation purchased the remaining four.

Why were the engines repossessed and sold?

The engines were repossessed by their owner, Estonia’s state-owned OÜ Transpordi Varahaldus (TVH), following the November 2024 bankruptcy filing of the previous operator, Xfly (a subsidiary of Nordic Aviation Group). The assets were sold to recover financial value for the state-owned leasing entity.

Sources:
ACC Aviation Official Press Release