FTAI, Chromalloy & the CFM56 HPT Blade PMA

When CFM came to know about these kinds of things, they banned Fortress from a lot of things. They don't even let us participate in any of the forums because they think we might influence their operators if we join the forums, which they don't want. So they don't invite us to any of the forums, even though we are an eligible lessor. All lessors are eligible to go to their forums. CFM is very nervous about this because they know their HPT blades are overpriced, but they don't want to accept it. - Former Director, FTAI Aviation

You know you’ve struck a nerve when you’re banned from General Electric’s industry conferences. FTAI Aviation, the lessor-turned-MRO-provider, is one of the world’s largest owners of CFM56 engines yet it cannot attend conferences of its engine manufacturer. This is because FTAI is creating a PMA for CFMs cash cow: the high-pressure turbine (HPT) blade. Over the last 4 years, this PMA has been a core attraction for FTAI bulls. 

In 1998, Delta Airlines, Lufthansa, and Chromalloy, a gas turbine parts repair company, created BELAC, a joint venture to manufacture HPTs for the CFM56-2/3. This JV was signed 20 years after the CFM56-3 was launched and close to the peak number of engines in service. BELAC’s HPT blade was finally approved in 2002. Over the next eight years, BELAC sold ~5,000 PMA HPT Blades per year. 

HPT blades are critical components in the core hot section of the engine. The blades convert energy of the hot gasses into mechanical energy to drive the compressor and produce thrust.