FTAI Aviation (FTAI) Jefferies Global Industrial Conference 2024 summary

Corporate structure and independence

• Transitioned to a fully independent, publicly managed aviation company, ending all ties with Fortress.

• CEO and CFO are now full-time employees, reflecting a shift to internal management.

• Structural changes and ownership shifts prompted the timing of this move.

Growth targets and market opportunity

• Revised 2026 EBITDA goal to $700 million, requiring about 10% market share in CFM56 and V2500 engines.

• Addressable market estimated at 14,000 CFM56 engines, translating to 2,500 shop visits and 5,000 modules annually.

• Current capacity allows for 1,350 modules per year, supporting further market share growth.

Business model and competitive advantages

• Offers airlines time and cost savings by providing immediate engine or module exchanges, reducing downtime and risk.

• Vertically integrated into maintenance, parts manufacturing, and engineering, focusing on cost control.

• Unique model combines leasing and maintenance, unlike traditional lessors or MROs.

• Owns a large inventory of engines, enabling rapid swaps and asset management.