Aviation Industry Faces Tug of War Over Jet Servicing Profits

Aviation Industry Faces Tug of War Over Jet Servicing Profits highlights a looming fight over who captures aftermarket revenue as aircraft fleets refresh. At the Farnborough Airshow near London on July 24, Reuters reported that the expected replacement of next-generation narrowbody models by around 2040 could trigger “once-in-a-lifetime” negotiations, with airframers seeking shares of engine makers’ lucrative service fees. Airbus Commercial CEO Lars Wagner said planemakers are positioned to participate in the three to four decades of aftermarket, while emphasizing delivery-based payments. Engine makers counter that they take longer, higher-risk positions, including fixed costs per flight hour like an insurance model; Pratt’s RTX CEO Chris Calio called for smoother cash flows and said preliminary discussions have started. The article also notes a “wild card” involving Rolls-Royce’s potential return.