Avianca has secured up to $300 million in financing backed by the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF) to fund MRO services for its CFM56 aircraft engines at GE Aerospace facilities in Brazil.

Announced in a press release on September 8, 2026, the transaction represents the first time a non-Brazilian airline has utilized the ABGF framework to finance aircraft engine maintenance. Citibank arranged the financing structure, which relies on Export Credit Insurance (SCE) provided by the Brazilian government to support the export of high-value services.

Abra Group leverages regional MRO capabilities

Avianca, a member of the Abra Group alongside Gol Linhas Aéreas and Wamos Air, will direct the funds toward engine shop visits at GE Aerospace’s Celma network. The financing provides the carrier with dedicated capital for heavy engine maintenance, a major cost center for commercial airlines operating mature narrowbody fleets.

“Maintaining a reliable and efficient fleet is fundamental to delivering the experience our customers deserve. According to Abra Group’s approach to fleet synergies and growth, this agreement provides additional flexibility to execute our maintenance plans while continuing to invest in the resilience, reliability, and performance of our operation,” said Felipe Gutierrez, Chief Operating Officer of Avianca.

The Avianca agreement follows a similar move by its sister airline. On August 13, 2026, Gol Linhas Aéreas secured a $160 million financing line under an identical ABGF guarantee structure for engine MRO services at the same GE Celma facilities.

Bolstering Brazil’s aerospace export sector

The GE Aerospace Celma operation spans sites in Petrópolis, Rio de Janeiro, and Três Rios. According to the company, the Brazilian network conducts nearly 25 percent of the manufacturer’s internal engine maintenance work globally.

Maíra Madrid, President of ABGF, stated that supporting high-technology services performed in Brazil generates value, skilled employment, and foreign exchange earnings. She noted that the transaction helps strengthen the international presence of Brazilian companies and expands the country’s participation in global aerospace value chains.

“This innovative financing solution, a first-of-its-kind with ABGF, provides Avianca with access to world-class maintenance and overhaul services at our Celma facility in Brazil. We look forward to building on this initiative to deliver even greater value for our customers across the region,” said Mahendra Nair, Group VP of Global Commercial Sales at GE Aerospace.

The Avianca MRO financing was announced on a busy day for GE Aerospace. Separately on September 8, 2026, the engine manufacturer agreed to acquire precision castings supplier Consolidated Precision Products (CPP) for $11.75 billion, a move designed to expand its control over specialized castings for commercial aerospace and defense applications.

AirPro News analysis

We view the consecutive ABGF-backed financing deals by Abra Group airlines as a calculated strategy to optimize heavy maintenance costs across the holding company’s fleet. By tapping into Brazilian state-supported export credit, Avianca and Gol can secure favorable financing terms for capital-intensive CFM56 shop visits without straining their primary balance sheets. This arrangement also cements GE Aerospace’s Celma facility as a critical node in the Latin American aviation supply chain, aligning operator needs with Brazil’s strategic push to export high-value aerospace services.

Sources: Avianca via PR Newswire

GE Aerospace has signed an agreement to acquire Consolidated Precision Products (CPP) for $11.75 billion in a move designed to vertically integrate a critical supplier and alleviate persistent supply chain bottlenecks in engine castings.

Announced on September 08, 2026, the transaction will see GE Aerospace finance the purchase with $7 billion in cash and the remainder in new debt. The acquisitions of the Cleveland-based manufacturer, backed by private equity firms Warburg Pincus and Berkshire Partners, is expected to close in the second half of 2027 subject to regulatory approvals.

Securing the aerospace supply chain

The aerospace and defense sector faces severe supply chain constraints. Castings and forgings have emerged as a primary chokepoint, limiting the production of commercial engines, military equipment, and aftermarket spare parts. According to reporting by Aviation Week, engine manufacturers have struggled to ramp up production to meet surging demand across these sectors.

CPP manufactures highly engineered castings that support major GE Aerospace engine programs, including the LEAP, GEnx, T700, F110, and F404. GE Aerospace has been a customer of CPP for more than 15 years.

In a press release issued on September 08, 2026, GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. stated that investing in mission-critical casting capacity is necessary to support simultaneous demand across commercial, aftermarket, and defense markets.

“By combining GE Aerospace’s technology capabilities and FLIGHT DECK with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms,” Culp said.

Financial structure and operational integration

The $11.75 billion purchase price represents a valuation multiple of approximately 18 times CPP’s expected 2027 EBITDA, factoring in expected net synergies. According to a GE Aerospace 8-K filing cited by Stock Titan, the company anticipates approximately $200 million in net synergies from the acquisition. Without these synergies, the valuation multiple stands at approximately 26 times EBITDA.

CPP operates more than 20 facilities worldwide and employs approximately 6,600 people. GE Aerospace plans to implement its proprietary lean operating model, known as FLIGHT DECK, across CPP’s manufacturing footprint. The goal is to drive process and quality improvements to support higher output.

James Stewart, CEO of CPP, noted the long-standing relationship between the two companies. Speaking to Aviation Week, Stewart said the manufacturer is excited to strengthen the partnerships and that GE Aerospace has shown strong enthusiasm for supporting CPP’s continued growth.

AirPro News analysis

We view this $11.75 billion acquisition as a definitive shift in how tier-one aerospace manufacturers manage supply chain risk. For years, the industry relied on a distributed network of specialized suppliers. However, the post-pandemic reality of constrained castings and forgings capacity has forced original equipment manufacturers (OEMs) to take direct control of their most critical inputs.

Airlines are battling engine-wear issues that reduce aircraft availability between scheduled shop visits. As noted by The Wall Street Journal, CPP produces advanced airfoil technology that helps keep engine surfaces cooler, directly improving efficiency and durability. By bringing CPP in-house, GE Aerospace secures its own production lines while gaining tighter control over the development of next-generation airfoil technologies required for hotter, more efficient future engine designs.

Sources: GE Aerospace

Marshall Group has entered into an agreement to sell its Marshall Aerospace subsidiary to European private equity firm Aurelius Group, resolving long-standing uncertainty over the maintenance and engineering provider’s future following the loss of its primary military contract and the impending closure of its historic airfield.

The planned acquisition, announced on September 2, 2026, marks a major transition for the Cambridge-based aviation firm. According to Cambridge News, the transaction is currently undergoing review by the UK government under the National Security and Investment Act. The deal also requires approval from Marshall Group shareholders and Austrian antitrust regulators, with a filing submitted to the Austrian Federal Competition Authority on the day of the announcement. Completion is targeted for late September 2026.

Operational pressures and relocation challenges

The sale follows a period of significant disruption for Marshall Aerospace. The company’s core business was heavily impacted when the UK Royal Air Force retired its fleet of Lockheed Martin C-130J Super Hercules aircraft in favor of the Airbus A400M, as reported by Aviation Week.

Compounding the loss of the maintenance work, Marshall Aerospace faced an impending deadline to vacate its long-time headquarters. On June 3, 2026, Marshall Group sold the 700-acre Cambridge East site, which includes Cambridge City Airport (CBG), for housing development. AeroMorning reported that the company is required to vacate the premises by mid-2029.

Initial plans to relocate the aerospace division to Cranfield University in Bedford were previously abandoned. A company spokesperson told Cambridge News that the proposed move was deemed unaffordable, with AeroMorning estimating the relocation costs at £100 million.

Corporate restructuring and regulatory steps

The divestment of Marshall Aerospace aligns with a broader restructuring strategy by its parent company. Following several years of financial losses, Marshall Group has systematically sold off non-core assets over the past 18 months, including its Advanced Composites, Land Systems, and Fleet Solutions divisions, along with its automotive retail arm in 2022.

A spokesperson for Marshall Aerospace stated that the group had been exploring options to secure a stable future for the aerospace division’s personnel and operations. The spokesperson noted that Aurelius Group is positioned to support the business through its next development phase.

The specific acquiring entity is AURELIUS Investment Lux Alpha S.à.r.l. The Austrian Federal Competition Authority confirmed receipt of the merger control filing on September 2, 2026, a necessary step before the transaction can close.

AirPro News analysis

We view the sale of Marshall Aerospace to Aurelius Group as a necessary resolution to a compounding series of operational hurdles. The simultaneous loss of the domestic Lockheed Martin C-130J Super Hercules sustainment contract and the loss of a physical operating base created an untenable capital requirement for the family-owned Marshall Group. By transferring ownership to a private equity firm, the aerospace division gains access to the capital required to fund a new facility before the mid-2029 eviction deadline at Cambridge City Airport (CBG). Aurelius will now bear the burden of securing a new operating location while attempting to diversify the maintenance provider’s customer base beyond legacy UK defense contracts.

Sources: Cambridge News