FTAI Aviation (FTAI) Deutsche Bank 15th Annual Aviation Forum 2025 summary

Business model and differentiation

• Focuses on providing aftermarket engine power for 737NG and A320ceo aircraft, managing both ownership and maintenance of engines.

• Offers airlines time and cost savings by acting as an outsourced engine maintenance provider, acquiring and rebuilding run-out engines for sale, exchange, or lease.

• Vertically integrates asset ownership and maintenance, combining lessor and MRO functions for efficiency and flexibility.

• Solves industry pain points related to costly and delayed shop visits, streamlining the engine maintenance process.

SAI partnership and growth strategy

• Launched a leasing partnership (SAI) to invest $4 billion in 250 aircraft, with 145 already closed or under LOI by July 31.

• Expects to reach the 250 aircraft target by year-end and plans to repeat the investment program annually if returns remain strong.

• Aims to become the largest owner of current-generation narrow-body aircraft, leveraging scale for operational and purchasing advantages.

• Decision on the next $4 billion partnership likely in Q4, contingent on first partnership returns.

Operational efficiency and market positioning

• Achieves return hurdles through efficient engine management, pre-positioned inventory, and module swaps, reducing downtime and costs.

• Customizes engine solutions to minimize investment and residual value risk, targeting higher returns with lower risk.

• Owns 500 engines, three maintenance facilities, and significant parts inventory, aiming to be the lowest-cost aftermarket power provider.