Air India Express and Willis Lease Finance Corporation Ink Engine Sale & Leasebacks with ConstantThrust®

Rhea-AI Summary

Willis Lease Finance (NASDAQ: WLFC) has entered into engine sale and leaseback agreements with Air India Express for 26 CFM56-7B engines on 13 Boeing 737-800 aircraft under its ConstantThrust® program. This expansion follows a 2022 agreement with Air India covering 34 CFM56-5B engines for their A320 fleet.

The ConstantThrust® program provides airlines with serviceable engines from WLFC's portfolio when maintenance is needed, reducing downtime and maintenance unpredictability. Both programs will be managed partly by WLFC's team in GIFT City, India.

According to Air India Express CEO Aloke Singh, the agreement helps eliminate maintenance uncertainties and reduces costs. WLFC's President Brian R. Hole noted that this decision validates their program's value and performance with Air India.

Positive

• Secured new revenue stream through sale and leaseback of 26 engines
• Expansion of existing successful program demonstrates strong customer satisfaction
• Strategic growth in Indian aviation market
• Recurring revenue through long-term engine maintenance program

Negative

• None.

Insights

Aviation Industry Expert

This agreement between Air India Express and Willis Lease Finance represents a significant expansion of WLFC's ConstantThrust® program in India. The deal covering 26 CFM56-7B engines across 13 Boeing 737-800 aircraft builds upon their 2022 arrangement with Air India for 34 CFM56-5B engines on A320 family aircraft.

The ConstantThrust® model fundamentally transforms how airlines manage engine maintenance. Rather than enduring lengthy, unpredictable shop visits, Air India Express gains access to WLFC's engine portfolio, enabling swift replacements when maintenance is required. This virtually eliminates operational disruptions from engine removals - a critical advantage in commercial aviation where aircraft utilization directly impacts profitability.

Most telling is Air India's decision to expand this relationship to its Express subsidiary, which strongly validates the program's effectiveness. The establishment of a WLFC team in GIFT City further demonstrates WLFC's commitment to the Indian market and positions them to potentially secure additional regional partnerships.

For Air India Express, this agreement addresses three persistent challenges in engine maintenance: unpredictable timelines, variable costs, and operational disruptions. By converting these issues into a structured program, they can achieve greater dispatch reliability while simultaneously improving financial predictability.

Financial Analyst

This expanded partnership with Air India Express represents a clear validation of WLFC's business model and indicates growing market acceptance of their ConstantThrust® program. The deal has several favorable financial implications for Willis Lease Finance :

First, it secures long-term utilization for 26 high-value assets in WLFC's portfolio, likely generating predictable revenue streams throughout the agreement's duration. Asset utilization is a critical metric for leasing companies, and this deal improves WLFC's position.

Second, the expansion from Air India to Air India Express suggests customer satisfaction with the initial program, potentially creating a template for additional business within the broader Air India group and other carriers. The reference to the team in GIFT City, India, indicates WLFC is establishing infrastructure to support further regional growth.

Third, this agreement aligns perfectly with WLFC's integrated business approach, combining traditional leasing with maintenance services and asset management. This bundled offering likely commands premium pricing compared to simple leasing arrangements.

Most notably, this deal comes at a time when airlines globally are prioritizing cash flow optimization and maintenance cost predictability. WLFC's ability to convert unpredictable maintenance expenses into structured operational costs addresses a critical industry pain point, creating substantial value for both parties.

COCONUT CREEK, Fla., March 27, 2025 (GLOBE NEWSWIRE) -- Air India Express (“AIX”), a wholly owned subsidiary of Air India, has signed definitive engine sale and leaseback agreements with Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”) for 26 CFM56-7B engines installed on 13 of its Boeing 737-800 aircraft. The engines will be covered under WLFC’s ConstantThrust^® program providing enhanced reliability and significant cost savings compared to traditional MRO shop visits. This program is in addition to the ConstantThrust^® program signed by WLFC and Air India in 2022, covering 34 CFM56-5B engines installed on Air India’s Airbus A320 family fleet. Both programs will be managed in part by WLFC’s team located in GIFT City, India.

WLFC’s ConstantThrust^® program helps airlines manage the risk and cost of engine overhauls by providing serviceable engines from its portfolio in place of engines that need to be removed for maintenance. This streamlined process reduces engine downtime, eliminates maintenance unpredictability, and lowers engine change costs, enabling airlines to focus on their core operations without disruption.

“WLFC’s ConstantThrust^® program has been successful so far for Air India and we are pleased to expand our partnership with WLFC in support of the Air India Express fleet,” said Aloke Singh, Chief Executive Officer of Air India. “This agreement allows us to eliminate the uncertainties associated with engine maintenance and mitigate unpredictable costs. WLFC’s ConstantThrust^® program will help us improve fleet reliability, reduce cost and optimize cash flows.”

“We believe Air India Express’ decision to select ConstantThrust^® evidences that Air India is realizing value from our ConstantThrust^® program and also validates our team’s performance on that program, ” said Brian R. Hole, President of Willis Lease Finance Corporation. “This is a great opportunity for us to continue supporting the growth of the Indian aviation industry, in general, and the Air India family of airlines, specifically.”

“We greatly value our long-standing relationship with Air India and are excited to continue providing innovative, programmatic solutions that deliver enhanced flexibility and cost efficiency for Air India Express and our global customers,” said Austin C. Willis, Chief Executive Officer of WLFC.

Willis Lease Finance Corporation
Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair, and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and the COVID-19 pandemic; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing  and current reports filed with the Securities and Exchange Commission. It is advisable, however, to consult any further disclosures the Company makes on related subjects in such filings. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

NEWS RELEASE	CONTACT:	Lynn Mailliard Kohler
		Director, Global Corporate Communications
		(415) 328-4798

FAQ

How many engines are covered in the Air India Express and WLFC ConstantThrust® agreement?

The agreement covers 26 CFM56-7B engines installed on 13 Boeing 737-800 aircraft of Air India Express.

What benefits does WLFC's ConstantThrust® program provide to Air India Express?

The program provides enhanced reliability, reduced engine downtime, elimination of maintenance unpredictability, and significant cost savings compared to traditional MRO shop visits.

How does this agreement relate to WLFC's previous deal with Air India?

This agreement expands upon a 2022 ConstantThrust® program with Air India that covered 34 CFM56-5B engines for their A320 family fleet.

Where will WLFC manage the ConstantThrust® programs for Air India and Air India Express?

Both programs will be partially managed by WLFC's team located in GIFT City, India.