Spare Engine Solutions Expand Leasing and Ownership Options

Pratt & Whitney Canada’s Spare Engine Solutions portfolio – including long-term and on-wing leasing plus lease-to-own options – provides customers with alternative, flexible solutions while keeping costs down and their aircraft flying.

New Options Offer Greater Flexibility

In the past, operators in need of a Pratt & Whitney Canada (P&WC) spare engine had two choices: buying one outright, or renting one on a short-term basis during shop visits. Now, several other attractive possibilities are available thanks to the growing portfolio of Spare Engine Solutions, which serves operators of business jets, PT6A and regional turboprops, helicopters, or an APU for commercial aircraft.

“Many customers are moving from a capital expenditure model to an operational expenditure model,” explains Abdelhadi Zamzaoui, senior manager, Spare Engine Solutions. “Rather than paying for their aircraft and engine up front, they’re paying it off over a period of time. The pandemic has accelerated this shift. Our Spare Engine Solutions are a response to the growing market need.”

Customers are looking for solutions that will help them to keep their aircraft flying and make a profit without a large initial outlay. Our leasing solutions are designed to help them do that.

 - Abdelhadi Zamzaoui, senior manager, Spare Engine Solutions, P&WC

Solutions Address Various Customer Needs

Each solution has distinct benefits. Buying a spare outright is a great option when there’s a long operating horizon. It means you own the asset yourself, so you are free to manage it according to your needs and resell it once it’s no longer required. This is still popular, and a variety of purchase options are available.

Short-term rental gives you temporary access to an engine while your engine is in the shop, without requiring a major upfront capital investment. This option minimizes cash outflow and mitigates risks for operators with limited funding on an event-by-event basis.

Long-term leasing, meanwhile, is ideal for customers who need an engine on site for a longer period but want to retain capital or prefer not to invest in a spare asset. Given the complexity of the current logistics climate, having a spare engine on hand is becoming increasingly attractive, especially to operators in remote locations, as it avoids aircraft on ground situations.

Long-term leasing is a great solution for customers who want to avoid delays and extra costs, such as customs and shipping, by having a spare engine on site at all times. It saves time, money and energy. 

- Abdelhadi Zamzaoui, senior manager, Spare Engine Solutions, P&WC

With on-wing leasing, P&WC buys mature engines back from customers and leases them replacement engines instead. This allows the operator to keep the aircraft flying for the remainder of its lifespan, while also benefiting from an influx of cash from the sale and increased cost certainty due to avoiding repair and maintenance costs. 

On-wing leasing is ideal for customers whose aircraft are approaching the end of their lifecycle and who don’t want the expense of a full overhaul, since the engine will only be used for another couple of years.

Finally, there’s the latest addition to the portfolio: lease-to-own, introduced in 2021. Customers who choose this solution can lease a new or used Pratt & Whitney Canada engine and own it by the end of the lease term.

It’s a cash flow-friendly option for operators looking to acquire engines without making a major capital outlay up front. In particular, it provides a financially viable option for customers who lost revenues during the pandemic and want to get flying again as soon as possible. They can start generating revenue while paying off their engine expenses at the same time.

Before, if customers wanted to buy an engine, they had to pay for it up front. Now, they need other flexible solutions to accommodate different situations. On-wing leasing and lease-to-own are customized solutions which are increasingly in demand.

 - Abdelhadi Zamzaoui, senior manager, Spare Engine Solutions, P&WC

Unrivalled Engine Pool Available to Customers Worldwide

For aircraft approaching the end of their life, there are few engine rental options available. P&WC’s  leasing division, however, has the world’s largest pool of P&WC rental and exchange engines. 

There are engines available in multiple locations around the world, including Europe, Brazil, the United States, Canada and Singapore. In-region proximity makes it easier and faster for them to reach customers wherever they are.

With the new solutions and flexibility we’re providing, which were not available in the past, along with our huge engine pool, we can provide a multitude of options. As the OEM, we also support all models, including engines for old and new aircraft—which no one else in the industry can do.

 - Abdelhadi Zamzaoui, senior manager, Spare Engine Solutions, P&WC

hanks to the size of the engine pool, Pratt & Whitney Canada can also customize leasing arrangements to suit each operator, whether they have one engine or a large fleet, to offer sustainable aircraft lifecycle solutions.

A long-term lease could, for example, be bundled with a maintenance program, such as a Fleet Management™ Program (FMP™), providing everything a customer needs under an hourly rate. Volume discounts for long-term leases are available for large fleets as well.

Like all P&WC customers, those who use spare engine solutions have the peace of mind that comes from knowing they have access to support whenever needed via the 24/7 Customer First Centre, mobile repair teams and field service managers in all regions of the world.

Learn more about how Pratt & Whitney is providing operators with flexible solutions aligned with their budgets and circumstances in On-Wing Lease Keeps Mature Aircraft Flying at a Lower Cost.