MRO & Manufacturing
AerFin Expands A320neo Aftermarket Services with Middle East Partnership
UK aviation firm AerFin acquires four A320neo aircraft to supply sustainable used parts, addressing global demand amid supply chain challenges.
AerFin, the UK-based aviation asset management company, has taken a significant step in expanding its aftermarket capabilities through the acquisition of four A320neo aircraft in partnership with a Middle Eastern investor. This strategic move, involving 2017-vintage aircraft sourced from Aviation Capital Group (ACG), is geared towards dismantling the aircraft to provide Used Serviceable Material (USM). The goal: to meet the growing global demand for cost-effective, sustainable, and high-quality aviation parts.
As the aviation industry grapples with supply chain disruptions and increasing sustainability mandates, AerFin’s approach aligns with the broader shift towards circular economy practices. By extending the lifecycle of aircraft components and reducing dependency on new parts, AerFin is reinforcing its role as a reliable partner for airlines, lessors, and Maintenance, Repair, and Overhaul (MRO) providers worldwide.
This acquisition not only strengthens AerFin’s inventory but also symbolizes a larger transformation within the aviation aftermarket. As newer aircraft like the A320neo are now being parted out due to operational and economic pressures, companies like AerFin are redefining what it means to manage aviation assets in a resource-constrained world.
Traditionally, aircraft part-outs were reserved for older models nearing the end of their service life. However, that paradigm has shifted due to a combination of factors including global supply chain issues, engine recalls, and delayed new aircraft deliveries. This has led to a growing trend of dismantling even relatively new airframes like the A320neo to harvest components for reuse.
AerFin’s acquisition fits squarely within this trend. The A320neo, which entered service in 2016, has over 10,000 orders globally, making it one of the most widely adopted narrow-body aircraft platforms. The four aircraft acquired are from the early production years (2017), offering parts that are both in high demand and relatively modern in design and technology.
By dismantling these aircraft, AerFin can provide components that are 20–40% cheaper than new parts, according to industry estimates. This cost advantage, coupled with the environmental benefits of reusing materials, makes USM an increasingly attractive option for airlines operating under tight financial and regulatory constraints.
“This is a landmark moment for AerFin and a testament to our expertise in the aviation aftermarket.” – Simon Goodson, CEO of AerFin
The aviation industry is under growing pressure to reduce its carbon footprint, and one of the most effective ways to do that is through the implementation of circular economy principles. Reusing aircraft components not only reduces waste but also minimizes the emissions associated with manufacturing new parts.
According to a report by KPMG, using USM can reduce manufacturing emissions by 30–50% per component. Furthermore, aircraft dismantling processes today can recycle up to 90% of an aircraft’s materials. These figures underscore the environmental benefits of AerFin’s strategy and highlight the increasing role of sustainability in asset management decisions. This shift is not just about environmental compliance. It’s also about operational resilience. With OEMs like Airbus and Boeing facing production backlogs, USM provides a timely and practical solution for operators needing to keep their fleets airworthy.
With facilities in the UK, Singapore, Miami, and Dublin, AerFin has positioned itself as a global player in the aviation aftermarket. The company employs over 200 specialists and has built a reputation for delivering reliable and innovative solutions to a diverse client base.
These capabilities enable AerFin to manage complex transactions and technical processes involved in aircraft dismantling and component certification. The partnership with the Middle Eastern investor adds a financial dimension to this technical expertise, allowing for larger and more strategic investments moving forward.
As the company continues to grow, its global presence ensures that it can meet regional demands efficiently while maintaining high standards of quality and compliance across its operations.
The demand for USM is on the rise, driven by a combination of aging fleets, supply chain bottlenecks, and cost pressures. According to market research, the USM market is projected to grow from $7.47 billion in 2024 to $10.31 billion by 2032, representing a compound annual growth rate (CAGR) of 4.1%.
AerFin’s acquisition of the A320neo aircraft positions the company to capture a significant share of this expanding market. Each aircraft offers thousands of components that can be refurbished and recertified for reuse, providing a steady stream of inventory for customers worldwide.
This is particularly important for airlines operating in emerging markets or those with tight maintenance budgets. By offering high-quality parts at a lower cost, AerFin helps these operators maintain safety and reliability without the financial burden of purchasing new components.
The involvement of a Middle Eastern investor in this transaction is noteworthy. It reflects a growing interest among institutional investors in aviation aftermarket assets, which are seen as stable and resilient compared to more cyclical segments of the industry. These investments are not just about financial returns. They also align with broader economic strategies in the Gulf region, where diversification away from oil is driving investments in sectors like aviation, logistics, and technology. The partnership with AerFin offers a mutually beneficial model that combines capital with operational expertise.
Such collaborations could become more common as the aviation industry continues to evolve. Investors are increasingly looking for opportunities that offer both financial and environmental returns, and the aftermarket segment is well-positioned to deliver on both fronts.
AerFin’s ability to execute this complex transaction demonstrates its leadership in the aviation aftermarket. The company has consistently shown a willingness to adapt to changing market conditions and to invest in solutions that meet the needs of its customers.
Innovation is at the heart of this strategy. From digital inventory management to advanced certification processes, AerFin is leveraging technology to enhance the efficiency and reliability of its services. This focus on innovation not only improves customer satisfaction but also sets a new standard for the industry.
As the market for USM continues to grow, companies that can combine technical expertise with strategic vision will be best positioned to succeed. AerFin’s recent acquisition is a clear example of this approach in action.
AerFin’s acquisition of four A320neo aircraft in partnership with a Middle Eastern investor marks a pivotal moment in the evolution of the aviation aftermarket. By focusing on USM, the company is addressing critical challenges related to cost, supply chain reliability, and environmental sustainability. This move not only enhances AerFin’s service offering but also contributes to the broader transformation of the aviation industry.
Looking ahead, the success of this transaction could serve as a model for future collaborations between asset managers and institutional investors. As demand for USM grows and sustainability becomes a central concern, companies like AerFin are well-positioned to lead the way in creating a more efficient, resilient, and environmentally responsible aviation ecosystem.
What is USM in aviation? Why are A320neo aircraft being dismantled? Who is AerFin? Sources: AerFin, FlightGlobal, KPMG, Jefferies, AFRA, Aviation Capital Group
AerFin’s Strategic Expansion in A320neo Aftermarket Services Through Middle Eastern Partnership
Understanding the Context: Aircraft Lifecycle and the Rise of USM
The Shift in Aircraft Asset Management
The Role of Circular Economy in Aviation
AerFin’s Global Footprint and Technical Capabilities
Strategic and Market Implications
Meeting Global Demand for USM
Investor Confidence and Capital Flow
Industry Leadership and Innovation
Conclusion
FAQ
USM stands for Used Serviceable Material. It refers to aircraft parts that have been removed, inspected, and certified for reuse. These parts offer a cost-effective and sustainable alternative to new components.
Due to supply chain disruptions and high demand for parts, even relatively new aircraft like the A320neo are being dismantled to provide USM. This helps airlines maintain their fleets without waiting for new parts.
AerFin is a UK-based aviation asset management company specializing in aircraft and engine leasing, trading, and aftermarket services, including USM. The company has facilities in the UK, Singapore, Miami, and Dublin.
Photo Credit: AerFin
MRO & Manufacturing
ITP Aero to Acquire Aero Norway, Expanding CFM56 MRO Services
ITP Aero signs agreement to acquire Aero Norway, enhancing aftermarket capabilities for CFM56 engines and expanding its European MRO presence.
ITP Aero, a global leader in aerospace propulsion, has signed a binding agreement to acquire Aero Norway, a specialized maintenance, repair, and overhaul (MRO) provider focused on CFM56 engines. According to the company’s official announcement, the transaction is expected to close during the first half of 2026, subject to customary regulatory approvals.
The acquisition represents a significant expansion of ITP Aero’s aftermarket capabilities. By integrating Aero Norway’s facility in Stavanger, Norway, ITP Aero aims to reinforce its status as a leading independent player in the aerospace services sector. The move follows a trajectory of aggressive growth for the Spanish propulsion company since its acquisition by Bain Capital in 22.
Aero Norway operates out of a facility at Sola Airport in Stavanger, employing a workforce of over 200 skilled technicians. The company has established a reputation for high-quality engine maintenance, specifically for the CFM56 engine family, serving a global client base of airlines, lessors, and asset managers.
In its press statement, ITP Aero highlighted that the two companies possess “highly complementary strengths.” The deal combines Aero Norway’s deep expertise in engine overhaul with ITP Aero’s existing engineering capabilities and component repair infrastructure. This synergy is designed to offer a more comprehensive suite of services to the aftermarket sector.
This agreement is the latest in a series of strategic moves by ITP Aero. In 2023, the company acquired BP Aero in the United States and was recently selected to join Pratt & Whitney’s GTF MRO network. These steps are part of a broader “2030 Strategic Plan” which aims to double the size of the business and increase the global workforce by 50% by the end of the decade.
While the press release focuses on corporate synergies, the acquisition underscores a critical trend in the current aviation landscape: the extended dominance of the CFM56 engine. As new-generation engines like the LEAP and GTF face supply chain delays and durability challenges, airlines are keeping older aircraft powered by CFM56 engines in service longer than originally planned.
Industry data suggests that approximately 20,000 CFM56 engines will remain in service through 2025. Consequently, the demand for maintenance shop visits is projected to peak between 2025 and 2027. By acquiring a specialist shop like Aero Norway, ITP Aero is effectively positioning itself to capture high-value work during this period of “structural undersupply” in the narrowbody market. This “Golden Tail”, the long, profitable tail end of an engine program’s lifecycle, provides a stable revenue runway for MRO providers capable of handling heavy overhauls. The crossover point where new-generation engine shop visits outnumber CFM56 visits is not expected until later in the decade, making capacity for legacy engines a premium asset today.
Leadership from both organizations emphasized the value of combining their respective technical strengths. Eva Azoulay, CEO of ITP Aero Group, described the agreement as a key component of the company’s roadmap.
“The signing of this binding acquisition agreement marks a significant milestone in our strategic roadmap. This acquisition reinforces our ambition to become a leading independent player in the aerospace aftermarket.”
, Eva Azoulay, CEO of ITP Aero Group
Neil Russell, CEO of Aero Norway, noted that the merger would unlock synergies beneficial to their customer base.
“By combining the complementary strengths of ITP Aero and Aero Norway, we will unlock significant synergies that enhance our competitiveness and deliver even greater value to our customers.”
, Neil Russell, CEO of Aero Norway
ITP Aero reports that it has tripled its earnings since 2022 and is currently implementing a long-term business plan that spans civil, defense, and MRO segments. The company was advised on legal M&A matters regarding this transaction by Baker McKenzie.
Pending regulatory clearance, the integration of Aero Norway into the ITP Aero Group will finalize in 2026, solidifying the company’s footprint in the European MRO market.
Sources:
ITP Aero to Acquire Aero Norway, Strengthening Position in CFM56 Aftermarket
Strategic Expansion in the MRO Sector
AirPro News Analysis: The “Golden Tail” of the CFM56
Executive Commentary
Future Outlook
Photo Credit: ITP Aero
MRO & Manufacturing
AkzoNobel Invests €50 Million to Upgrade US Aerospace Coatings Facilities
AkzoNobel invests €50 million to expand and modernize aerospace coatings production in Illinois and Wisconsin, enhancing capacity and supply chain resilience.
This article is based on an official press release from AkzoNobel.
AkzoNobel has officially announced a significant investments of €50 million (approximately $52–55 million) to modernize and expand its aerospace coatings capabilities in North America. According to the company’s announcement on December 18, 2025, the project will focus on upgrading its flagship manufacturing facility in Waukegan, Illinois, and establishing a new distribution center in Pleasant Prairie, Wisconsin.
This strategic move aims to increase production capacity and shorten lead times for airline and Maintenance, Repair, and Operations (MRO) customers. By enhancing its supply chain infrastructure, AkzoNobel intends to address the growing demand for air travel and the subsequent need for advanced aerospace coatings.
The investment centers on the Waukegan facility, which currently serves as AkzoNobel’s largest aerospace coatings production site globally. The site employs approximately 200 people and houses a dedicated color center. According to the press release, the capital injection will fund the installation of new machinery and automated processes designed to handle larger batch sizes.
To further optimize operations, the company is relocating its warehousing and distribution activities to a new facility in Pleasant Prairie, Wisconsin. This relocation is intended to free up floor space at the Waukegan plant, allowing for a focus on complex, customized chemical manufacturing.
Patrick Bourguignon, Director of AkzoNobel’s Automotive and Specialty Coatings, emphasized the forward-looking nature of the investment:
“This investment will increase our comprehensive North American supply capability and solidify our position as a frontrunner in the aerospace coatings industry. Demand for air travel is expected to grow significantly… and we want to make sure our customers are able to meet that demand.”
A key component of the upgrade is the introduction of a “Rapid Service Unit” dedicated to faster turnaround times for the MRO market. The company states that the new infrastructure will include a “liquid pre-batch area” and “high-speed dissolvers” to accelerate production.
Martijn Arkesteijn, Global Operations Director for AkzoNobel Aerospace Coatings, noted that these improvements are designed to enhance flexibility for customers: “We’ll be able to provide current and future customers with even more flexibility through the delivery of large batch sizes, better responsiveness to market needs and shorter lead time for color development.”
While AkzoNobel’s announcement focuses on internal efficiency, this investment arrives during a period of intensified competition within the North American aerospace sector. Earlier in 2025, rival manufacturer PPG announced a massive $380 million investment to construct a new aerospace coatings plant in Shelby, North Carolina.
In our view, AkzoNobel’s strategy differs significantly from its competitor’s greenfield approach. Rather than building new capacity from scratch, AkzoNobel is executing a targeted upgrade of existing assets. This “efficiency war” suggests that the company is betting on agility and technology upgrades, specifically the ability to deliver custom colors and small batches quickly via its new Rapid Service Unit, rather than simply expanding raw volume output.
The upgraded facilities are also aligned with the aviation industry’s push for decarbonization. AkzoNobel highlighted that the investment supports the production of its “Basecoat/Clearcoat” systems, which are lighter than traditional coatings. Reducing paint weight is a critical factor for airlines seeking to lower fuel consumption and carbon emissions.
Furthermore, the new automated processes are expected to reduce chemical waste and solvent use. The facility upgrades will likely support the increased production of chromate-free primers, meeting stricter regulatory requirements in both the United States and the European Union.
By localizing more storage and production capacity in North America, AkzoNobel also aims to bolster supply chain resilience, addressing vulnerabilities exposed during the post-pandemic aviation recovery.
AkzoNobel Announces €50 Million Upgrade to US Aerospace Coatings Operations
Strategic Expansion in Illinois and Wisconsin
Operational Efficiency and the “Rapid Service Unit”
AirPro News Analysis: The Competitive Landscape
Sustainability and Technology Integration
Sources
Photo Credit: AkzoNobel
MRO & Manufacturing
GE Aerospace Deploys 180 Engineers for Holiday Flight Operations
GE Aerospace positions 180 Field Service Engineers in 34 countries to prevent aircraft groundings and manage winter maintenance challenges during peak holiday travel.
While millions of travelers settle in for holiday downtime, the global aviation industry enters its most critical operational window. According to AAA projections, approximately 122.4 million Americans traveled 50 miles or more from home during the 2024-2025 holiday season, with air travel seeing a projected 2.3% increase in domestic flyers. Behind this surge lies a largely invisible workforce dedicated to preventing cancellations before they happen.
According to an official press release from GE Aerospace, the company deployed 180 Field Service Engineers (FSEs) to 34 countries specifically to support Airlines customers during this peak period. These engineers are “embedded” directly with airlines and airframers, working on tarmacs and in hangars to mitigate technical risks that could otherwise ground fleets during the busiest weeks of the year.
The role of an FSE goes beyond standard maintenance; it involves proactive problem-solving under strict time constraints. GE Aerospace describes these teams as being on the front lines, ensuring that both passenger jets and cargo freighters remain operational despite the strain of high-cycle usage and winter weather.
Jordan Mayes, a Regional Leader for GE Aerospace Commercial Field Service in Western Europe and Africa, highlighted the intensity of the holiday operational tempo in the company’s statement:
“The sense of urgency is more elevated than normal… And often there are fewer hands to do the work.”
, Jordan Mayes, GE Aerospace Regional Leader
This urgency is driven not just by passenger volume, but by a booming air cargo sector. Industry data indicates that air cargo volumes saw double-digit growth in late 2024, driven by e-commerce demands and shipping disruptions in the Red Sea. Stephane Petter, a Regional Leader for Central/Eastern Europe and Central Asia, noted that the stakes for cargo are often underestimated.
“An issue with a grounded or delayed passenger aircraft might delay 350 people. With a cargo plane, thousands of parcels might be delayed, so the downstream customer impact is potentially greater.”
, Stephane Petter, GE Aerospace Regional Leader
To illustrate the impact of embedded engineers, GE Aerospace shared a specific operational success story involving Alaa Ibrahim, the Middle East regional leader. His team was monitoring a Boeing 787 Dreamliner equipped with GEnx-1B engines. The engineers identified a minor clamp repair that was necessary to keep the engine compliant. The engine was only four cycles (flights) away from a mandatory 500-cycle inspection limit. If the limit was reached without the repair, the aircraft would be grounded, a disastrous outcome during peak holiday scheduling.
Instead of waiting for a forced grounding, Ibrahim’s team identified a six-hour window in the aircraft’s schedule. They performed the inspection and repair proactively, ensuring the aircraft remained available for service without disrupting the airline’s timetable.
Beyond scheduling pressures, FSEs must contend with the physical realities of winter aviation. Industry reports highlight that “cold soak”, where an aircraft sits in freezing temperatures for extended periods, presents unique mechanical challenges. Oil can thicken, and seals can shrink or become brittle.
According to technical data regarding modern engines like the CFM LEAP, specific warm-up protocols are required to thermally stabilize the engine before takeoff power is applied. Maintenance teams often switch to lower-viscosity fluids and rigorously check breather tubes for ice accumulation. If a breather tube freezes due to condensation, it can pressurize the engine and cause seal failures.
The deployment of these 180 engineers highlights a broader shift in aviation maintenance from reactive repairs to predictive intervention. By utilizing digital tools that monitor engine health in real-time, often referred to as “Flight Deck” principles, engineers can detect vibration trends or temperature spikes before they trigger a cockpit warning.
We observe that this strategy is particularly vital during the holidays. When load factors are near 100%, airlines have zero spare aircraft to absorb a cancellation. The ability of FSEs to turn a potential “aircraft on ground” (AOG) event into a scheduled maintenance task during a layover is the difference between a smooth operation and a headline-making travel meltdown.
All Sleigh, No Delay: How Field Service Engineers Keep Holiday Fleets Airborne
The “Invisible Elves” of Aviation
Operational Wins: The GEnx-1B “Save”
Technical Challenges in Winter Operations
AirPro News Analysis: The Shift to Predictive Maintenance
Frequently Asked Questions
Sources
Photo Credit: GE Aerospace
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