FTAI Aviation is a leading CFM56 engine repair shop and lessor. The company is the largest owner of CFM56 engines and offers modular repair services for airlines and lessors globally. This learning journey curates our research on the CFM56 MRO network, engine design, and how FTAIs module swap offering works. We explore:

• Engine lifecycle from production to aftermarket maintenance 
• CFM56 modular engine architecture 
• Structure of CFM56 repair shops between OE and indies
• Drivers of an engine’s book value 
• How FTAI module swap program works and its scale advantages 
• How FTAI sources USM and LLPs for repairs 
• Engine PMAs and FTAIs Chromalloy JV

Engine Life Cycle 

An aero engine OEM operates a standard razor-blade model: it sells engines for a small profit aiming to recoup its R&D spend through replacement parts. On average, OEMs have negative cumulative cash flow for ~17 years.