FTAI Aviation Ltd. Announces Closing of QuickTurn Europe Joint Venture
- Increases total module maintenance capacity by 33% (450 additional modules per year)
- Strategic expansion into European market with facility at major international airport
- Addition of state-of-the-art CFM56 engine test-cell capabilities
- Expected creation of hundreds of new skilled jobs
- Geographic diversification with facilities now in Europe, Canada, and US
- Piece-part repair capabilities not operational until second half of 2025
- 50% ownership structure may limit full operational control
Insights
FTAI's European joint venture significantly boosts maintenance capacity by 33%, strengthening their global CFM56 engine service network.
FTAI Aviation's closure of their QuickTurn Europe joint venture represents a strategic expansion that meaningfully enhances their global maintenance capabilities. The acquisition of a 50% stake in IAG Engine Center adds a third CFM56 engine shop to their network, complementing existing facilities in Montréal and Miami with a European hub at Rome Fiumicino Airport.
The numbers here are compelling. This joint venture increases FTAI's module maintenance capacity by
This expansion addresses several strategic priorities for FTAI. First, it establishes a critical European presence, reducing logistics costs and turnaround times for European customers. Second, it helps FTAI meet strong market demand for CFM56 maintenance – crucial as these engines power thousands of narrowbody aircraft worldwide. Third, the planned piece-part repair capabilities coming online in 2H 2025 will enhance vertical integration and margin potential.
The partnership structure is particularly advantageous, allowing FTAI to rapidly scale maintenance capacity without building a facility from scratch. This accelerates their return on investment timeline while leveraging the facility's existing expertise and airport relationships. The location at Rome Fiumicino, one of Europe's fastest-growing airports, provides optimal connectivity for just-in-time maintenance services.
From a business strategy perspective, FTAI's QuickTurn Europe joint venture addresses a critical market need. The CFM56 is among the most widely used engine families in commercial aviation, powering thousands of Airbus A320 and Boeing 737 aircraft globally. With the aviation industry facing maintenance backlogs and capacity constraints, this
The joint venture structure is particularly shrewd. By acquiring a 50% stake rather than building a facility from scratch, FTAI gains immediate operational capabilities, established workforce expertise, and existing customer relationships while sharing investment risk. The rebranding to QuickTurn Europe creates brand consistency across their maintenance network while preserving operational continuity.
The geographic positioning is exceptional. Having maintenance hubs in North America (Montréal and Miami) and now Europe (Rome) creates a triangulated global network that minimizes aircraft downtime and transportation costs. Rome Fiumicino's status as a growing international hub provides natural traffic flow and connectivity advantages that will enhance service delivery efficiency.
FTAI's expansion timing aligns with aviation industry trends. As airlines focus on extending the service life of existing fleets amid new aircraft delivery delays, engine maintenance demand continues to outpace capacity. The planned piece-part repair capabilities coming online in 2H 2025 will enhance vertical integration, reducing reliance on third-party suppliers and potentially improving margins.
This move also creates significant competitive barriers. The substantial capital investment required for engine MRO facilities and the technical expertise needed to operate them make this a difficult business segment to enter. FTAI's expanded capacity strengthens their competitive position against both traditional MROs and OEM service networks.
Joint Venture Will Increase FTAI’s Global Maintenance Capacity by Approximately
NEW YORK and ROME, June 05, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (Nasdaq: FTAI) (“FTAI” or the “Company”) today announced that it has closed its previously announced acquisition of a
Highlights of the joint venture include:
- Adds third owned and managed CFM56 engine shop to FTAI Aviation network, complementing existing facilities in Montréal and Miami
- Increases FTAI’s module maintenance capacity by 450 modules (150 engines) per year, representing a
33% increase to FTAI’s current capacity of 1,350 modules (450 engines) - State-of-the-art CFM56 engine test-cell
- Expects to quickly ramp up production, with piece-part repair capabilities anticipated to be operational in second half of 2025
“Our joint venture with IAG Engine Center marks a milestone in our expansion into Europe and our overall maintenance capabilities,” said Joe Adams, CEO of FTAI Aviation. “QuickTurn Europe’s robust repair capabilities will provide expanded maintenance, repair, and exchange (MRE) services to FTAI’s global customer base in a critical geographic location, ensuring increased efficiency and reliability for our customers. With this additional capacity at the internationally leading Rome Fiumicino Airport, one of Europe’s most important, innovative, and fastest growing airports, we are excited about the growth opportunities ahead as we help support airlines in their long-term maintenance needs.”
“The partnership with FTAI will optimize operations at the facility, enabling faster, more efficient services to airlines across Europe. We are excited to continue to innovate and bring additional value to airlines and asset owners around the world,” said Mauricio Luna, CEO of IAG Engine Center.
“FTAI’s investment further strengthens the Rome Fiumicino Airport's position as a key player in the global aviation ecosystem,” said Ivan Bassato, Chief Aviation Officer of Aeroporti di Roma (ADR). “Rome Fiumicino Airport’s central location and connectivity make it an ideal hub for providing just-in-time engine maintenance services. With this significant industrial investment, we expect hundreds of new skilled jobs will be created as QuickTurn Europe grows, with a very positive and direct impact for the economy of the cities of Fiumicino and Rome, the region Lazio and all of Italy.”
The integration of QuickTurn Europe with FTAI’s current maintenance capabilities in Montréal and Miami will help address the strong demand from the Company’s global customer base. In total, the joint venture operating at full capacity brings FTAI’s maintenance capacity to 1,800 CFM56 modules and over 600 engine tests annually.
About FTAI Aviation Ltd.
FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.
About IAG Engine Center Europe
Located at Rome Fiumicino Airport, IAG Engine Center Europe specializes in the maintenance, repair, and overhaul (MRO) of CFM56-5B and CFM56-7B engines. The facility features extensive piece-part repair capabilities and includes a state-of-the-art test cell. Situated at one of Europe's busiest airports, which serves 91 airlines and approximately 50 million passengers annually, IAG Engine Center Europe benefits from Fiumicino's unparalleled connectivity across Europe.
Cautionary Note Regarding Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the timing for the piece-part repair capabilities to become operational, and the expected number of new jobs to be created as QuickTurn Europe ramps up. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this communication are based upon FTAI’s historical performance and on its current plans, estimates and expectations in light of information currently available to it. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in these statements, including, but not limited to, the risk factors set forth in Item 1A. “Risk Factors” of FTAI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and FTAI’s Quarterly Reports on Form 10-Q, as updated by annual, quarterly and other reports FTAI files with the SEC.
Contacts
Investors
Alan Andreini
Investor Relations, FTAI Aviation Ltd.
(646) 734-9414
aandreini@ftaiaviation.com
Media
Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
FAQ
What is the impact of FTAI's QuickTurn Europe joint venture on maintenance capacity?
Where is FTAI's new QuickTurn Europe facility located?
How many CFM56 engine maintenance facilities does FTAI now operate?
What is FTAI's total maintenance capacity after the QuickTurn Europe acquisition?
When will QuickTurn Europe's piece-part repair capabilities be operational?
