FTAI Aviation to acquire Lockheed Martin Engine Solutions

FTAI Aviation has announced its agreement to acquire Lockheed Martin Commercial Engine Solutions (LMCES) from Lockheed Martin Canada for $170 million. This transaction is pending customary regulatory approvals and is expected to be finalised in the latter half of 2024.

LMCES operates a 526,000 ft² aircraft engine maintenance and repair facility in Montréal, Quebec, with extensive capabilities in engine and piece-part repairs for CFM56 engines. FTAI, as LMCES’s largest customer, partnered with LMCES in 2020 to establish The Module Factory™ at this site to distribute CFM56 modules globally. The facility can handle up to 900 CFM56 modules annually and features three on-site test cells.

This acquisition will significantly strengthen FTAI’s maintenance, repair and exchange (MRE) business, creating permanent engine and module manufacturing capabilities in Canada. FTAI aims to expand its module customer base, which currently includes over 50 airlines and lessors worldwide. Moreover, FTAI plans to establish a centre of excellence in Montréal for piece-part repairs, serving both its own operations, including the used serviceable material business and third-party clients.

“Acquiring Lockheed Martin Commercial Engine Solutions represents a significant milestone for FTAI as we expand our MRE offerings,” stated Joe Adams, CEO of FTAI. “We know the facility well and greatly value the team’s technical expertise and commitment to quality. We are excited to grow the shop’s piece-part repair capabilities and continue delivering modules and engines to the aftermarket from a world-class facility in Montréal.”

FTAI focuses on the ownership and maintenance of commercial jet engines, primarily specialising in CFM56 and V2500 engines. FTAI’s unique portfolio of products, which includes The Module Factory and a joint venture for manufacturing engine PMA, offers cost savings and flexibility to its airline, lessor, and maintenance, repair, and operations customers. Additionally, FTAI owns and leases jet aircraft, often facilitating engine acquisitions at favourable prices. FTAI invests in aviation assets and aerospace products that provide strong and stable cash flows with potential for earnings growth and asset appreciation.