FTAI Aviation Ltd. (NASDAQ: FTAIN)

FTAI Aviation Ltd. is a leading independent engine maintenance platform focused on the CFM56-5B, CFM56-7B and V2500 aircraft engines that power the 737NG and A320ceo aircraft families. The company repairs and rebuilds engines in its own maintenance facilities and with joint venture partners, and sells or leases the resulting engines to airlines and asset owners worldwide. In addition, FTAI Aviation owns and manages a portfolio of on lease and off lease aircraft and engines through its Aviation Leasing segment and has launched a Strategic Capital Initiative to manage third party capital for investments in aviation assets.

The company generates revenue primarily from engine repair, refurbishment and sales under its Aerospace Products segment, leasing income from owned aircraft and engines in its Aviation Leasing segment, and asset management fees from its Strategic Capital Initiative. Customers include airlines, aircraft lessors, operators and institutional investors who purchase or lease aviation equipment and seek maintenance services.

The company operates through the following segments.

• Aerospace Products: This segment develops, manufactures, repairs and refurbishes aircraft engines and aftermarket components for the CFM56-5B, CFM56-7B and V2500 engines, sells engines modules and parts through a dedicated commercial maintenance program, holds a 25% interest in the Advanced Engine Repair JV focused on cost saving repair programs, and launched the FTAI Power platform to convert CFM56 engines into power turbines.

• Aviation Leasing: This segment owns and manages a portfolio of 290 aviation assets comprising 47 commercial aircraft and 243 engines, leases approximately 37 aircraft and 143 engines to third parties, maintains an average utilization rate of about 77%, and provides aircraft management services to the Strategic Capital Initiative’s 2025 Partnership which commits $2.0 billion of equity to acquire on lease narrowbody aircraft and receives exclusive MRE engine and module support from FTAI Aviation.

FTAI Aviation holds a leading position as an independent provider of engine maintenance, repair and leasing services, competing with traditional aircraft engine manufacturers, independent MRO providers, aircraft lessors and financial investors that pursue aviation asset acquisitions; its competitive advantages stem from a proprietary Maintenance Repair and Exchange model, long standing relationships with airlines and lessors, a diversified asset base that generates predictable cash flows, and the internalization of its management function that reduces ongoing fee expenses.

The company serves a global customer base that includes airlines, aircraft operators, leasing companies and institutional investors; while specific names are not disclosed, a limited number of customers accounted for 23% of accounts receivable and contributed 13% and 10% of Aerospace Products revenue respectively.