Charles R. Goulding and Preeti Sulibhavi explore how FTAI Aviation is reshaping the jet engine refurbishment industry through its Chromalloy partnership, cutting-edge 3D printing, and a potential $4 billion expansion to meet surging demand amid aerospace supply chain woes.
FTAI Aviation has emerged as a dominant force in the refurbishment and resale of jet engines, capitalizing on production challenges at Boeing and Airbus. As these aerospace giants grapple with supply chain disruptions and regulatory hurdles, demand for refurbished engines has surged, positioning FTAI as a critical player in the aviation ecosystem. The company’s latest strategic initiative—a partnership with Chromalloy, a leading turbine manufacturer—underscores its commitment to innovation and cost efficiency in aircraft engine maintenance and repair.
Strategic Partnership with Chromalloy
FTAI Aviation’s alliance with Chromalloy is designed to streamline the production of key engine components, enhancing both performance and cost-effectiveness. Chromalloy, now under the ownership of Veritas Capital following its 2022 acquisition from Carlyle Group, brings decades of expertise in turbine component manufacturing. The partnership aims to produce five crucial engine parts, with the goal of reducing maintenance costs by approximately US$2 million per aircraft undergoing engine service.
Regulatory approvals are a critical factor in the success of this collaboration. As of now, two of the five components have received the necessary certifications, with a third component reportedly nearing approval. This phased approval process underscores the rigorous quality and safety standards that govern the aviation industry, ensuring that every component meets stringent performance and durability criteria.
The Role of 3D Printing in Chromalloy’s Manufacturing
One of the most significant aspects of Chromalloy’s operations is its adoption of advanced manufacturing technologies, particularly 3D printing, also known as additive manufacturing (AM). The aviation sector has been at the forefront of leveraging 3D printing for component production, and Chromalloy has been no exception. By incorporating 3D printing into its manufacturing processes, the company has achieved several key advantages:
- Enhanced Design Flexibility: Traditional manufacturing methods often involve multiple steps, including casting, machining, and assembly. With 3D printing, Chromalloy can produce complex geometries that were previously difficult or impossible to achieve using conventional techniques. This capability allows for the creation of optimized turbine components with improved aerodynamics and thermal resistance.
- Reduced Lead Times: Engine maintenance and refurbishment require quick turnaround times to minimize aircraft downtime. 3D printing enables Chromalloy to produce replacement parts more rapidly compared to traditional machining and casting methods, thereby accelerating the overall refurbishment process.
- Cost Savings: Additive manufacturing reduces material waste by building components layer by layer, using only the necessary amount of metal powders such as nickel-based superalloys. This reduction in waste translates into significant cost savings, aligning with FTAI’s strategy to lower expenses in engine servicing.
- Improved Component Performance: 3D printing allows for precise control over material properties, resulting in turbine blades and other critical engine components that exhibit superior heat resistance, fatigue strength, and durability. These enhancements contribute to longer-lasting parts and reduced maintenance cycles, further driving down operational costs.
Industry Examples of 3D Printing in Aviation
Chromalloy’s use of 3D printing aligns with broader industry trends. Major aerospace manufacturers, including GE Aviation and Rolls-Royce, have pioneered additive manufacturing for engine components such as fuel nozzles, turbine blades, and structural parts. GE’s LEAP engine, for instance, features a 3D printed fuel nozzle that is five times more durable than its conventionally manufactured counterpart. Chromalloy’s integration of similar technologies reinforces its competitive edge in the aviation aftermarket sector.
Expansion Plans: Potential $4 Billion Investment with Apollo Global Management
Beyond its partnership with Chromalloy, FTAI Aviation is exploring another transformative initiative: a potential $4 billion investment with Apollo Global Management. This investment would facilitate the acquisition of aircraft, which FTAI would then refurbish and reintroduce into the market. Given the current delays in new aircraft production from Boeing and Airbus, the demand for refurbished planes is at an all-time high. Airlines seeking cost-effective solutions for fleet expansion are turning to the secondary market, where FTAI’s expertise in engine refurbishment positions it as a key supplier.
The partnership with Apollo, a leading private equity firm with deep expertise in asset-based investing, would provide FTAI with the financial backing to scale its operations. By acquiring older aircraft and overhauling their engines with state-of-the-art components—potentially including 3D-printed parts—FTAI could offer carriers a compelling alternative to new aircraft purchases.
The Future of 3D Printing in Aircraft Maintenance and Refurbishment
Looking ahead, 3D printing is expected to play an even greater role in aircraft refurbishment. As regulatory agencies continue to approve additive-manufactured components for commercial use, companies like FTAI and Chromalloy will be well-positioned to expand their offerings. The ability to produce high-performance, cost-effective parts on demand will not only drive down maintenance expenses but also reduce reliance on traditional supply chains, mitigating the risk of production bottlenecks.
Moreover, advancements in metal 3D printing, including electron beam melting (EBM) and direct metal laser sintering (DMLS), are enabling the creation of increasingly complex and durable components. These innovations will likely lead to further cost reductions and performance improvements in aircraft engine maintenance.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
FTAI Aviation’s strategic initiatives reflect a broader shift in the aerospace industry toward advanced manufacturing and asset optimization. The partnership with Chromalloy highlights the growing role of 3D printing in turbine component production, while the potential Apollo investment signals a bold expansion strategy aimed at capitalizing on the surging demand for refurbished aircraft. As additive manufacturing technologies continue to evolve, companies that embrace these innovations will remain at the forefront of aviation’s next era, delivering cost-effective and high-performance solutions to airlines worldwide.
