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2026.09.30 | TB | Aerospace | Aircraft Engine MRO & StandardAero Expert

原标题：Aircraft Engine MRO Space & StandardAero – Former Senior Executive, Sales & Marketing at StandardAero Inc

#industrials

Third Bridge · 2026-09-30

Client-led • 25 Sep 2026

Companies: SARO US

Expert Former Senior Executive, Sales & Marketing at StandardAero Inc

Agenda

Questions

00:01:39] I'm researching StandardAero, and I'm trying to understand the engine MRO [maintenance, repair and overhaul] space. How would you compare and contrast SR Technics with StandardAero?

Expert [00:04:41]: You cannot even compare the two because of size, capabilities and business. Starting with StandardAero, today it's a USD 4bn-plus business, around 40 locations around the world. The main business for StandardAero is engine overhaul, engine MRO, but also a big portion is engine components MRO. They have a dedicated division called StandardAero Components. They have another two businesses. One is military, which is approximately one-third of the company. Lastly, they have also a business jet MRO base maintenance, which is really less than 5% of the company. You can identify really this giant, as the biggest independent MRO in the industry. SR Technics, a completely different ball game comes out of the old Swissair engineering and maintenance department.

SR Technics today is around approximately 1,000 people. It's only engine MRO. Across only two main models of engines, PW4000 and CFM56. They have recently added also LEAP and GTF, which they are really in a starting phase of that. Back to StandardAero, I missed to mention. StandardAero in terms of engine model capabilities, they are the market leader for regional engines MRO. That means Pratt & Whitney Canada, PW100/PW150, but they have also now heavily investing in the narrow-body commercial engine MRO, namely CFM56-7, where they have two sites. One is in Canada and Winnipeg, the other one is in Texas. Last but not least, they have also been investing in the LEAP capability where they will, for sure, become very prominent in the next future. They also have CF34 capability, -3 and -8 in Canada. In terms of number of shop visits per year, StandardAero approximately is between 600 and 800 shop visits per year, while SR Technics is approximately 200, just to give you a size, just for engine MRO. As I told you, StandardAero is also additional businesses where the engine components for StandardAero is one of the most profitable part of the business.

Client [00:08:48]: It seems that SR Technics is focused on two engines – the PW4000 and the CFM56. Is that right?

Expert [00:08:58]: Correct. Two engine platforms, yes, PW4000, 94-inch, 100-inch and the CFM56-5B, -7B. I'm not sure if you're familiar with this. Otherwise, we can expand on this.

Client [00:09:14]: I'm relatively familiar. I don't think StandardAero is focusing much on the PW4000.

Expert [00:09:25]: No, they don't have PW4000 capability.

Client [00:09:28]: The CFM56 is the only place where they'd compete on an RFP [request for proposal] against each other. Is that right?

Expert [00:09:39]: That's exactly spot on. That's correct.

Client [00:09:51]: StandardAero is North America-focused. How is it positioned in EMEA and Asia?

Expert [00:10:12]: Your statement that StandardAero is North American-based. That's not correct. StandardAero has many locations also in Europe and in Asia. You say that it's North American, which is not the case.

00:12:14] Could you explain the component repair business? How does component repair sales work? Your customers are MRO shops. How do you let them know what repairs you do?

Expert [00:12:51]: The customer base for the component repair business are other engine shops, are engine parts traders and airlines. We have three categories of customers for the engine component business. The way it works, it works in a way that basically, you have a certain capability, which can be exclusive or non-exclusive. When it's an exclusive capability, basically, you have no competition. When it's not an exclusive capability, you have to compete in the market with others based on commercial terms. StandardAero like any other component MRO player, they have a certain range of capabilities in terms of part numbers. Parts inside the engine, you may be familiar from fan blades, air foils, cases, disks, combustion chambers. Then, you support your customers by getting their components for repair, you make them serviceable and you send back to your customers to being assembled back on the engine.

Client [00:14:28]: I've heard the engine OEM has a manual, and it will have some basic repairs that most MRO shops can do. Sometimes, there are more advanced exclusive repairs. How does that work?

Expert [00:14:53]: Let me expand on this and be more precise. Yes, the technical data, how to repair engine components are contained in the engine manual, which is proprietary of the engine OEM. Inside the engine manual, you have open book repairs. That means repair processes described in the engine manual. You have repairs, which are not described in the engine manual, but the manual will tell you this repair is sole source licensed to a certain company. In order to have the capability on those licensed repair, you need to have a specific licence to have the access to the technical data of that specific repair. The licence is being regulated by a licence agreement, which is a commercial contract.

There are also technology barriers, obviously, besides this licensing barriers, there are also technology barriers. I would say there are less equipped shops and more equipped shops. To repair engine components, you have a certain degree of technology in terms of machining equipment, which is typically very expensive. Not all besides the access to the technical data, as I described before, there is also a technological/investment barrier.

Client [00:16:57]: What does the process look like when you are selling these components?

Expert [00:17:07]: Component repair, not components, component repair. You sell the service.

00:17:13] Can you walk me through the component repair service process?

Expert [00:17:24]: There are two ways to do that. The first way is through public tenders. Big airlines or big MROs, they would publish a tender in the market and saying, "Hey, this is the list of part numbers, which we would like to receive a bid." There are terms and conditions, and then you place your bid. Then typically, those tenders for component repair are, are made from big airlines, very, very large organisations. Smaller airlines, smaller entities, the way it works is on private negotiation by contacting customer or being known in the network as a player. Usually, the main contacts are being made at the MRO shows, or air shows. You probably are familiar with these industry events where you meet your customers, you present your capabilities and you discuss their needs. Based on their needs, you place your offers.

00:19:02] How much of StandardAero's component repair business was sole sourcing, where it bought the licence and it's the only one that can repair vs the more general repairs?

Expert [00:19:24]: There are two ways to see this. One is in value, and one is in number of part numbers. In the case of StandardAero, those two things, more or less, they coincide. Usually, the most valuable repairs, they stay with the OEMs. They do not give licences to anybody.

00:20:27] StandardAero has been growing its component repair business by acquiring smaller component repair shops. Could you explain how it works for a salesperson? StandardAero acquired EB Airfoils and PTS Aviation. How did that affect sales volumes?

Expert [00:20:53]: EB Airfoils is a repair company. PTS Aviation is a broker/teardown company. It's not a repair company. These are two different things. Let's talk about EB Airfoils. EB Airfoils was acquired by StandardAero because of their unique capability on fan blade repairs on CFM and other platforms, which was not until that time part of the StandardAero portfolio. From a sales perspective, the team participated to the evaluation, due diligence by assessing the market potential on those repairs in the market and contributing as a top-line element in the business case.

Client [00:22:06]: Regarding EB Airfoils, once StandardAero acquired it and could do fan blade repair, would you go to Farnborough and start talking to your customers about that capability? How did that work?

Expert [00:22:24]: Absolutely, yes. You advertise this new capability. Then you start to talk with customers, and you start to try to acquire market share from the other players in the fan blade repair space, which one is the OEM. The second one is GKN Chem-tronics.

00:22:57] Could you explain the sales synergies? Were the customers completely unaware of EB Airfoils before, or (talking over each other)?

Expert [00:23:16]: Most of them not because EB Airfoils until that time was really doing only very old platforms like JT8, old JT8 engines, the MD-80 and other very old platforms. With the acquisition of StandardAero, there was also the new licence for doing the CFM56 fan blade, -5B and -7B. This was granted from CFM to StandardAero. That's also the reason why StandardAero decided to acquire EB Airfoils.

Client [00:24:01]: It bought the licence first, then the know-how. Is that right?

Expert [00:24:06]: Yes. You don't really buy a licence. The licences are not up for sale. The licences are always a result of a negotiation. Something you have to give to the OEMs, and in terms of other businesses, and then they would give you the licence to execute on that business.

Client [00:24:34]: What are you giving the OEM, because it seems that the OEM has something valuable?

Expert [00:24:45]: For example, take the LEAP and StandardAero made available the huge capacity in Texas to become a capacity for the LEAP MRO in North America. CFM was really looking for that capacity, the CFM network. This probably was a leverage.

Client [00:25:22]: Are you saying there is horse trading where StandardAero would offer to build huge capacity to help with the LEAP, and as a part of this negotiation, CFM lets it do repairs on fan blades for the CFM56?

Expert [00:25:37]: For example, yes. It's not always black and white, as you described, but it's part of a bigger picture. Repair licences are not there up for sale. A repair licence is a repair capability is a big business for an OEM. Before giving that away to a third party or making a third-party sharing and enjoying part of that market, the OEM wants to have something equivalent back in terms of volume, in terms of future opportunities. That's why when we talk about repair licences, the large airlines MROs like Lufthansa Technik, for example, like Delta TechOps or Air France-KLM industry, they have a big advantage or a big leverage with the OEMs to get repair licences.

Client [00:26:56]: Could you elaborate on that? Why did the large airlines and MROs have that advantage?

Expert [00:27:03]: Because when Lufthansa sits at the bargaining table with the OEMs to buy 200 aircraft, with a certain engine platform, they would negotiate at that specific moment, the repair licences for their own repair shops and the ability to sell those capabilities also in the third-party market. That's why Lufthansa Technik is one of the primary players in the component repair space for engines.

Client [00:27:39]: Since it's buying USD 1bn worth of engines, it has some negotiation leverage because it's also a customer rather than just a supplier. Is that correct?

Expert [00:27:50]: Correct.

Client [00:27:51]: StandardAero seems to be at a disadvantage from that standpoint.

Expert [00:27:56]: StandardAero has other leverage, but significantly less effective than a large airline MRO. The category of players in the engine market are three, as you may know. One are the OEMs. The second is the large airline MROs and the third one are the independents. The last one are the squeezed ones in this licences game.

00:28:41] How much value can StandardAero add to a component repair business after it buys it?

Expert [00:29:07]: There are two elements to that. (1) Intra-group synergies. You may understand that. When you acquire a company, you share some services with the group, and therefore, you save some cost locally in terms of purchasing, HR, you start to aggregate volumes and things like that. You have synergies within the group. (2) You use that capacity in the case of StandardAero, you use that capacity that you just bought, first of all, for your engine lines? Then you are very competitive selling the very same service to the third-party market because some of the costs are already factored in the captive business.

Client [00:30:20]: Let's say, its own MRO shops do 300 of a certain type of component repair per year, but it doesn't have the capability in-house. It sends that to four different shops to do component repairs. Now, if you bought a business that can do that component repair, it could be one of those four shops, which can do all of your component repair for that part. It can thus grow StandardAero's sales. It may also help the acquired company's cost structure because you have this volume running through it.

Expert [00:30:58]: There are two effects. For StandardAero, this will increase competitiveness for their engine MRO. You understand because StandardAero buying those capabilities within its network, no longer will send out to third-party vendors those repairs. Therefore, they will become more competitive when they do engine level MRO offering. The second thing is that you have a certain scale of costs, which are absorbed by your own captive volume. Therefore, you can use the remaining capacity of those repair shops offering that capacity to third-party customers. Those repair shops from StandardAero, they do not work exclusively for external customers. They also work for StandardAero itself for the engine MRO shops from StandardAero.

Client [00:32:13]: Let's say, about 15% of its sales go to StandardAero.

Expert [00:32:21]: Yes, whatever.

Client [00:32:21]: You mentioned two benefits. The third benefit that StandardAero has talked about is that its repair salespeople will sell the services of that acquired component repair shop to new customers, growing the sales with third-party customers. Do you agree?

Expert [00:32:53]: New customer is not correct. Take the CFM56 platform. StandardAero already have in their customer base, all the CFM56 customers worldwide. When you acquire a new repair shop and new business, you expand the volume of sales with each of those customers, but you don't acquire new customers because you have already that customer.

Client [00:33:32]: We're acquiring new customers for the component repair business for EB Airfoils, not for StandardAero. It's cross-selling a newly acquired component repair service. Is that correct?

Expert [00:33:47]: Looking at it this way, it's correct. Yes.

00:33:52] Can StandardAero buy a component repair business at USD 20m of sales and then double sales over the next three years by selling that service to its existing customer base and using it more in its shops?

Expert [00:34:19]: It is absolutely possible because typically, (1) those repair shop, they do not have a very strong sales network and therefore, adding this new capacity to the StandardAero network, the opportunity is maximised. (2) Typically, StandardAero will expand the capability of those acquired shops by adding new products. Every time I saw a growth in those two directions.

Client [00:35:01]: There are many levers to create value post-acquisition.

Expert [00:35:11]: It's a pretty good set-up. Today, StandardAero is the biggest independent component repair MRO in the world.

00:35:24] How does the RFP [request for proposal] process work? Is it akin to an airline knowing it does 100 repairs of these types of parts every year, owing to which it'll try to negotiate that in advance?

Expert [00:35:44]: That's correct. Typically, they ask for from a big consulting company to put together the tender package. The main aim of those tender processes is cost saving compared to previous years. They try to maximise the opportunity by volume, by duration of the contracts, things like that. Those airlines. They are being helped by consulting firms to put together those technical and commercial packages. Those packages are being sent to the potential bidder. Then you place your bid, which is typically divided in two blocks. One is the technical bid, one is the commercial bid. Then you will get them evaluated from the consulting firm. Then, typically, there's a scorecard. They have a score system through different KPIs. Then with a final score and depending on how the score system is structured, the winner is determined.

Client [00:37:44]: How many different players compete within these RFPs? Is it the same (talking over each other)?

Expert [00:37:48]: No, it depends on the kind of parts we are talking about. The component repair players, they do not repair all the same parts. There are companies like StandardAero, which they have a very broad range of capability, but there are other companies that they are focusing only on a smaller range of capabilities. It depends the content of the package to answer your question. Example if the bid is on low-pressure turbine foils, they will be invited only company that have that specific capability.

00:38:50] Before I started looking at StandardAero, my perception of the aftermarket industry was that it's great to be Safran because you have proprietary IP. It's the only player in town once it buys an engine on spare parts, so it can raise prices a lot. There's tremendous growth, and it's a great business. I thought that MRO is a subpar business. It's just labour with no real IP. There are no real barriers to entry. A PE-funded company could set up a new MRO shop. Looking at StandardAero's financials, it's much better than expected for a real commoditised business. Sales growth is good, but the ROIC metrics are quite attractive. It seems like there haven't been any new PE-backed entrants into the space.

Expert [00:40:28]: There is one very prominent one, which is [Firm]. They have just acquired ITP, which they acquired Aero Norway and BP Aero.

Client [00:40:43]: That's not a new entrant but a consolidation of an existing entrant, which is what StandardAero itself is. Do you see the difference from a competitive barriers-to-entry standpoint? It seems that there should be new entrants or start-up companies, because the returns on capital are good and it's a big growth industry, but there haven't. It's been the same players. The number of players is decreasing as PE rolls them up.

Expert [00:41:23]: Yes, absolutely. You are fully right. The engine MRO, let's talk about engine MRO now, but it's less sensitive on aircraft-based maintenance, but engine MRO is the most one which is affected from this phenomenon of licence IP and everything. When you compare, for example, the previous generation of narrow-body engines, the CFM56 and the V2500, you compare that with the newer platform like the LEAP and the GTF, there's a complete closure from the OEM side to any kind of opportunities for third-party MROs. Everything is being controlled. Everything is being regulated, and it's a totally controlled model. To answer your question, yes, I see absolutely almost impossible today starting from field a new shop without being backed significantly from the OEMs, or from a larger line MRO?

00:43:02] Why is GE not willing to hand out licences to a few new start-up OEMs to have more competition for people to whom it can farm out its power-by-the-hour work?

Expert [00:43:25]: Because they have, first of all, to fill their capacity. They have been expanding dramatically their capacity. That's not the way they see that. For the pure independents, take the example of Aero Norway, for example, or GA Telesis in Finland or Jordan Airmotive, those smaller players. They come out of old, old establishments 30 years ago. Today, I see little chance for them to survive.

Client [00:44:27]: Do you think StandardAero will acquire some of those players? Would it make sense for it?

Expert [00:44:33]: It makes sense because, for example, StandardAero, they do not have a CFM56 capacity in Europe. They have regional engine capacity in Europe, but not CFM56 and the one that I mentioned, for example, they would.

00:45:00] What are the opportunities for StandardAero? What risks or threats should an investor be thinking about?

Expert [00:45:30]: Risk and threats, currently, I see geopolitically driven risks. We are witnessing an increase of the fuel cost. You have seen many airlines grounding aircraft, cancelling flights, including Ryanair and other big ones. This is in the short term, a big risk for the MRO.

Client [00:46:17]: If the demand drops and supply stays constant, you have a supply-demand imbalance.

Expert [00:46:26]: Correct. The airlines, either they ground the aircraft or they defer maintenance. Typically, what comes out in those phases are, for example, a lot of pressure in the module exchange business model. You may know FTAI, which is one of the prominent player in this space, which they offer to customers module exchanges rather than shop visits. Obviously, this has an impact in the overall revenue streams of the engine MRO, namely component repair, for example, and things like that. The second is pressure on the leasing market. There will be scarcity of lease engines. Lease rates will go up with all the consequences that we know. Scarcity of used serviceable material. That means also increase of the price of used serviceable material, which drive up the cost of the shop visits. There is all a knock-on effect, which I see given the current situation, specifically driven by the fuel cost. We have observed that airline typically, they have hedged their fuel price, but now all those hedging contracts are going to an end. The one from Ryanair, for example, is going to an end in March next year. That's why they plan to cancel flights next year.

Client [00:48:50]: Are they fairly short-term risks? Are there some bigger longer-term ones to be thinking about?

Expert [00:48:57]: No. Longer-term risk for a business like StandardAero, no. They have done an incredible job to capture the future growth of the engine MRO with both new capacity in Winnipeg, for example, they have just opened a new facility. You may read the news these days. They just expanded their Canadian capacity for CF34 and CFM56, the -7. They are now industrialising the LEAP. They are very well positioned in North America to capture a big portion of that volume. They are market leader in the regional engine MRO. They have a very broad component repair business, which is very profitable. I don't see any other risk rather than the one that we have mentioned from an investing point of view.

00:50:19] We discussed how component MRO acquisitions can be very attractive for StandardAero. Is there much opportunity to buy a meaningful number of more component repair businesses?

Expert [00:50:41]: Not big ones because more or less, the component repair market has been somehow consolidated as well. There are players like Barnes, which has been on a buying spree as well. Limited in the short term to additional sizeable component repair. What I see in component repair is the expansion of the current portfolio for StandardAero because you will have all the component repair coming out of LEAP engines, which will be driven by their engine MRO, but also that it will be offered to third-party customers.

Client [00:51:33]: Will it be developing new component repairs in-house for the LEAP?

Expert [00:51:44]: Of course, they got the licence from CFM. Not for every part, but for a significant number of components.

Client [00:52:01]: Will LEAP significantly grow the percentage of proprietary component repairs?

Expert [00:52:21]: Honestly, I don't know. It's too early. The repairs are not even written in the manual as we speak. They are being developed as we speak. What I can certainly tell you is that the most valuable will remain within the OEM, namely, for example, the high-pressure turbine airfoils, for example, they will all stay with GE, for example.

00:52:51] What have I not asked you that I should've?

Expert [00:53:06]: They have been able to really manage the business very nice. They've been efficiently restructuring, a lot of operations that they have, which they have all contributed to these very positive financial results that you have seen over the last couple of years since they have been listed.