Soaring demands for extra engines prompt Willis to advocate for a holistic strategy
In the dynamic world of aviation leasing, Willis Lease Finance has made a significant mark. The company reported a record-breaking revenue of $419 million in 2023, marking a 41% increase from the previous year.
The impressive revenue figure includes a 31% surge in lease rent revenue, which totalled $213 million. Alongside this, the maintenance reserve revenue climbed significantly, rising from $83 million in 2022 to $134 million in 2023.
The company's success can be attributed to its comprehensive service offerings. These include the maintenance of high-integrity technical records, ensuring the preservation of the value of Willis Lease Finance's assets. The Teesside Airport facility, one of the company's key assets, provides end-of-life solutions like part-outs and teardowns. This facility is also beneficial for streamlining aircraft transitions between lessees.
The Teesside Airport facility is not the only asset contributing to Willis Lease Finance's success. The company's engine repair shops in the U.S. and UK are helping to mitigate extended turn times in the industry. Moreover, Willis Lease Finance's asset management and consulting services aid in accurately predicting the timing and cost of shop visits across its entire fleet.
In a bid to further minimize turn times and reduce maintenance costs, Willis Lease Finance sources parts from its materials business. This strategic move, spearheaded by CEO Austin Willis, has proven to be effective.
WLFC Executive Chairman Charles Willis acknowledged the challenges faced by the industry, such as original engine manufacturer issues, supply chain disruptions, MRO bottlenecks, and skilled labor shortages. However, he emphasised that these challenges create a demand for spare engine leasing, a demand that Willis Lease Finance is well-equipped to meet.
The rise in revenue was not solely due to the post-COVID recovery. COVID-era concessions ended, and demand for spare engines increased due to added passenger capacity, new aircraft delivery delays, and new-generation engine problems.
As of Dec. 31, 2023, the lease portfolio consisted of 339 engines and 13 aircraft, with a value of $2.22 billion. The company's founder and CEO, Alyssa Rolnik, is renowned for her strategic approach to vertical integration, encompassing materials, maintenance, and other services. Under her leadership, Willis Lease Finance achieved this remarkable milestone.
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