AerFin’s CFM56 Engine Restoration: Pioneering Sustainable Aviation Asset Management Through Advanced MRO Capabilities

AerFin has demonstrated innovative aviation asset management by successfully repairing and returning a previously unserviceable CFM56 engine to operational status through sophisticated module replacement techniques at its South Wales facility. This milestone, the company’s first full-cycle in-house engine restoration, highlights AerFin’s growing technical expertise in maximizing asset value while reducing waste in aviation maintenance. By replacing the 21X and 22X modules with serviceable components from companion engines originally destined for teardown, AerFin accelerated turnaround times and enhanced commercial value compared to conventional approaches. The achievement occurs amid industry-wide supply chain disruptions and material shortages affecting newer engine models like the Leap, positioning AerFin’s integrated technical-commercial model as a responsive solution for operators prioritizing reliability. This approach supports aviation sustainability by extending engine lifespans, potentially reducing carbon emissions compared to manufacturing new parts, while creating flexible pathways for asset utilization including lease, resale, or teardown options.

Corporate and Technical Background

AerFin’s Operational Evolution

Founded in 2010 and headquartered in Caerphilly, United Kingdom, AerFin has established itself as a comprehensive aviation aftermarket solutions provider specializing in aircraft, engine, and component acquisition, leasing, and maintenance. The company’s January 2025 expansion to a 116,000 sq. ft. facility at Indurent Park in Newport, South Wales, marked a strategic investment in engine MRO capacity, enabling up to 200 quick-turn shop visits annually through warehouse automation and advanced diagnostics. This state-of-the-art facility incorporates sustainability features including solar panels and rainwater harvesting systems, aligning with aviation’s decarbonization goals while doubling AerFin’s maintenance throughput capabilities.

Under Chief Operating Officer Simon Bayliss’s leadership, AerFin has cultivated a business model combining technical asset evaluation with commercial insight, serving over 600 customers across six continents through regional hubs in Europe, Asia, and the United States. This global presence allows the company to respond swiftly to market demands and provide tailored solutions to a diverse client base.

AerFin’s integrated approach to asset management enables it to extract maximum value from aviation assets, particularly in a market where cost efficiency and sustainability are increasingly critical. By combining trading, technical, and MRO functions under one roof, AerFin is redefining the standards of aftermarket aviation support.

The CFM56 Engine’s Aviation Legacy

The CFM International CFM56 is the most widely used high-bypass turbofan in commercial-aviation history, with over 30,000 units produced. This two-shaft turbofan powers entire aircraft families including Boeing’s 737 series and Airbus A320ceo variants. Known for exceptional durability, the CFM56 engine averages 30,000 flight hours before its first shop visit, with some units exceeding 50,000 hours.

The engine’s modular design allows for targeted component replacement, making it an ideal candidate for selective repairs. The 21X (fan) and 22X (low-pressure compressor) modules are particularly suited for this strategy, as they are responsible for primary thrust generation and are less cycle-limited than core sections. This architecture supports cost-effective maintenance strategies and extends engine life.

With CFM committed to producing spare parts until at least 2045, the CFM56 remains a viable platform for operators managing aging fleets. Its widespread use and robust performance make it a cornerstone of commercial aviation, particularly as newer engine models face production bottlenecks.

The Engine Restoration Initiative

Asset Identification and Technical Strategy

AerFin acquired a package of three CFM56 engines originally intended for teardown. Upon inspection, the company’s trading team identified one engine with repairable potential. Rather than dismantling all three, AerFin proposed a targeted repair strategy involving the replacement of the 21X and 22X modules with serviceable units from another engine in the package.

This decision exemplified AerFin’s integrated model, where commercial insight and technical evaluation work in tandem. The selected modules, critical for engine airflow and thrust, were replaced to restore the engine’s functionality without the need for more invasive and costly repairs to the core sections.

By leveraging internal resources and existing inventory, AerFin minimized costs, avoided unnecessary waste, and preserved the value of the asset. This approach reflects a strategic shift in MRO practices towards more sustainable and economically viable maintenance solutions.

Execution and Validation Process

The module replacement was carried out entirely at AerFin’s MRO facility in South Wales. Utilizing advanced tooling and in-house expertise, the engineering team completed the swap with high precision. This internal execution reduced turnaround times and eliminated the need for external subcontractors.

Following the repair, the engine underwent a successful test cell run to validate its performance against OEM standards. This marked the first time AerFin completed a full-cycle engine repair and return-to-service using its own infrastructure, a significant milestone for the company’s operational capabilities.

The success of this project confirms the effectiveness of AerFin’s recent infrastructure investments and showcases the potential of its integrated MRO model. It also sets a precedent for future engine repair projects, reinforcing the company’s position as a leader in sustainable aviation asset management.

Technical and Operational Advantages

Integrated Business Model Efficiency

AerFin’s combination of asset trading, technical evaluation, and MRO execution creates unique operational synergies. The trading division identifies undervalued engine packages, while the engineering team develops customized repair strategies using available components. This holistic approach reduces costs and enhances asset value.

For the CFM56 restoration, this model enabled a 35% cost reduction compared to traditional MRO pathways while increasing the asset’s market value through certified return-to-service documentation. Additionally, the remaining engines in the package can be used for teardown, lease, or resale, providing flexibility in asset utilization.

Such agility is particularly valuable in a volatile market, where demand for mature engine support fluctuates based on airline operations and global supply chain dynamics. AerFin’s approach allows it to adapt quickly and efficiently to these changes.

Facility and Capability Enhancements

The Newport facility was designed to handle complex engine repairs, including module replacements. With automated logistics systems and advanced diagnostics, the facility streamlines component retrieval and damage assessment, reducing downtime and labor costs.

During the CFM56 project, these capabilities were instrumental in ensuring precise alignment and integration of the new modules. The facility’s capacity to handle up to 200 shop visits annually positions AerFin to meet growing demand for mature engine maintenance services.

By investing in both infrastructure and workforce training, AerFin has built a vertically integrated operation capable of delivering high-quality, efficient, and sustainable MRO solutions. This positions the company as a competitive force in the global aviation maintenance market.

Economic and Environmental Implications

Lifecycle Cost Optimization

Traditional CFM56 shop visits can cost upwards of $1.3 million, with materials accounting for the majority of expenses. AerFin’s selective module replacement strategy significantly reduces these costs by leveraging serviceable used components and avoiding full overhauls.

This approach aligns with industry trends favoring used serviceable material (USM) to manage maintenance budgets. By extending the usable life of engine modules, operators can defer major investments while maintaining operational reliability.

In the long term, such strategies contribute to more predictable maintenance planning and improved return on investment for engine assets. AerFin’s model provides a blueprint for cost-effective engine lifecycle management.

Sustainability Benefits

Engine remanufacturing offers substantial environmental benefits, including reduced raw material consumption and lower energy use. By repairing rather than replacing, AerFin minimizes waste and supports the circular economy in aviation.

The CFM56 restoration project exemplifies these benefits, diverting significant amounts of material from landfills and avoiding emissions associated with new part production. This contributes to industry-wide efforts to reduce the carbon footprint of aircraft maintenance.

Initiatives like Boeing’s Clear Sky fund highlight the growing importance of sustainability in aviation. AerFin’s practices align with these goals, demonstrating that economic efficiency and environmental responsibility can go hand in hand.

Industry Context and Strategic Positioning

MRO Market Dynamics

The global MRO market is undergoing significant change, driven by aging fleets, delayed new aircraft deliveries, and rising maintenance costs. The wide-body segment alone is projected to grow at a CAGR of 4.1% through 2034, reflecting increased demand for support services.

Engine maintenance is particularly impacted, with capacity constraints and supply chain issues creating challenges for operators. The CFM56 remains a critical platform, with many aircraft expected to remain in service well into the next decade.

AerFin’s repair strategy addresses these challenges by offering an alternative to OEM-dependent maintenance. Its ability to restore engines cost-effectively and sustainably provides a valuable option for airlines navigating a complex operational landscape.

Technological and Competitive Landscape

Advancements in data analytics and AI are transforming MRO practices. Predictive maintenance tools can identify potential failures before they occur, optimizing repair schedules and reducing unplanned downtime.

AerFin is leveraging these technologies to enhance its operations, integrating technical data with market intelligence to inform asset acquisition and repair strategies. This data-driven approach supports faster decision-making and improved outcomes.

Competitively, AerFin occupies a unique position by combining asset trading with in-house MRO capabilities. Its integrated model offers advantages in speed, cost, and flexibility that traditional MRO providers may struggle to match.

Conclusion

AerFin’s successful restoration of a CFM56 engine marks a significant achievement in aviation asset management. By combining technical expertise with commercial insight, the company has demonstrated a scalable model for maximizing asset value while supporting sustainability goals.

As the aviation industry continues to evolve, AerFin’s integrated approach offers a compelling path forward. Its ability to adapt to market conditions, leverage technology, and deliver high-quality MRO services positions it as a leader in the future of sustainable aviation maintenance.

FAQ

What is the significance of the CFM56 engine in aviation?
The CFM56 is the most widely used turbofan engine in commercial aviation, powering aircraft like the Boeing 737 and Airbus A320ceo. Its modular design and durability make it ideal for selective repairs and long-term use.

How did AerFin repair the engine?
AerFin repaired the engine by replacing the 21X and 22X modules with serviceable components from another engine. This was done entirely in-house at their South Wales facility.

What are the environmental benefits of repairing engines?
Repairing engines reduces the need for new parts, lowers raw material consumption, and prevents waste. It also cuts down on carbon emissions associated with manufacturing and disposal.

Sources: AerFin, CFM International, Aviation Week, Boeing, Wikipedia, Magnetic Group, Clear Sky Fund