Willis Lease Finance Corporation Announces Joint Venture with Global Engine Maintenance to Develop Engine Test Cell Facility
Willis Lease Finance (NASDAQ: WLFC) has announced a strategic joint venture with Global Engine Maintenance (GEM) to establish Willis Global Engine Testing (WGET), a new engine test cell facility in West Palm Beach, Florida. The venture combines WLFC's industry experience with GEM's MRO expertise in CFM56 engine overhauls.
The facility will initially focus on servicing CFM56-5B and CFM56-7B engines, with future capabilities for newer generation engines. The project aims to address the significant shortage of engine test cell facilities in North America, which currently impacts the efficiency of returning engines to service. Ground breaking is planned for late 2025.
Willis Lease Finance (NASDAQ: WLFC) ha annunciato una joint venture strategica con Global Engine Maintenance (GEM) per stabilire Willis Global Engine Testing (WGET), una nuova struttura per test di motori a West Palm Beach, Florida. La joint venture combina l'esperienza di WLFC nel settore con l'expertise di GEM nelle riparazioni e manutenzioni (MRO) dei motori CFM56.
La struttura si concentrerà inizialmente sulla manutenzione dei motori CFM56-5B e CFM56-7B, con future capacità per motori di nuova generazione. Il progetto mira a risolvere la significativa carenza di strutture per test di motori in Nord America, che attualmente influisce sull'efficienza del ritorno dei motori in servizio. L'inizio dei lavori è previsto per la fine del 2025.
Willis Lease Finance (NASDAQ: WLFC) ha anunciado una joint venture estratégica con Global Engine Maintenance (GEM) para establecer Willis Global Engine Testing (WGET), una nueva instalación de pruebas de motores en West Palm Beach, Florida. La empresa conjunta combina la experiencia de WLFC en la industria con la experiencia en MRO de GEM en la revisión de motores CFM56.
La instalación se centrará inicialmente en el servicio de motores CFM56-5B y CFM56-7B, con futuras capacidades para motores de nueva generación. El proyecto tiene como objetivo abordar la significativa escasez de instalaciones de pruebas de motores en América del Norte, lo que actualmente afecta la eficiencia en el retorno de los motores al servicio. La inauguración está prevista para finales de 2025.
윌리스 리스 파이낸스 (NASDAQ: WLFC)는 글로벌 엔진 유지보수(GEM)와 전략적 합작 투자 계약을 체결하고 윌리스 글로벌 엔진 테스트(WGET)를 설립하여 플로리다주 웨스트팜비치에 새로운 엔진 테스트 셀 시설을 만들었습니다. 이 합작 투자는 WLFC의 산업 경험과 GEM의 CFM56 엔진 오버홀에 대한 MRO 전문성을 결합합니다.
이 시설은 처음에 CFM56-5B 및 CFM56-7B 엔진의 서비스에 집중할 예정이며, 향후 새로운 세대 엔진에 대한 능력을 갖출 계획입니다. 이 프로젝트는 현재 북미에서 엔진 테스트 셀 시설의 심각한 부족 문제를 해결하는 것을 목표로 하며, 이는 엔진을 서비스로 복귀시키는 효율성에 영향을 미치고 있습니다. 착공은 2025년 말로 예정되어 있습니다.
Willis Lease Finance (NASDAQ: WLFC) a annoncé un partenariat stratégique avec Global Engine Maintenance (GEM) pour établir Willis Global Engine Testing (WGET), une nouvelle installation de test de moteurs à West Palm Beach, en Floride. Ce partenariat combine l’expérience de WLFC dans l’industrie avec l’expertise en MRO de GEM dans la révision des moteurs CFM56.
La structure se concentrera initialement sur le service des moteurs CFM56-5B et CFM56-7B, avec des capacités futures pour des moteurs de nouvelle génération. Le projet vise à résoudre la pénurie significative d’installations de test de moteurs en Amérique du Nord, ce qui impacte actuellement l’efficacité du retour des moteurs en service. Le début des travaux est prévu pour fin 2025.
Willis Lease Finance (NASDAQ: WLFC) hat eine strategische Joint Venture mit Global Engine Maintenance (GEM) angekündigt, um Willis Global Engine Testing (WGET) zu gründen, eine neue Prüfstandeinrichtung für Triebwerke in West Palm Beach, Florida. Das Joint Venture kombiniert die Branchenerfahrung von WLFC mit der MRO-Expertise von GEM in der Überholung von CFM56-Triebwerken.
Die Einrichtung wird sich zunächst auf die Wartung von CFM56-5B und CFM56-7B Triebwerken konzentrieren, mit zukünftigen Fähigkeiten für neuere Triebwerksgenerationen. Das Projekt zielt darauf ab, den erheblichen Mangel an Prüfstandeinrichtungen für Triebwerke in Nordamerika zu beheben, was derzeit die Effizienz der Rückführung von Triebwerken in den Dienst beeinträchtigt. Der Baubeginn ist für Ende 2025 geplant.
- Strategic expansion into engine testing services addressing market shortage
- Partnership with established MRO provider reduces operational risks
- Potential for additional revenue streams from third-party customers
- Future-proof facility with capability to service newer generation engines
- Significant capital investment required for facility construction
- Extended timeline to operational status (ground breaking in late 2025)
- initial engine type coverage (only CFM56-5B and -7B)
Insights
WLFC's joint venture with Global Engine Maintenance represents a strategic vertical integration that addresses a critical infrastructure gap in North America's aviation maintenance ecosystem. The shortage of engine test cell facilities creates a bottleneck in the MRO process, extending aircraft downtime and increasing costs for operators.
By establishing Willis Global Engine Testing (WGET), the company is positioning itself to capture additional revenue streams while enhancing the value proposition of its core leasing business. Test cell facilities have high barriers to entry due to their specialized infrastructure requirements, substantial capital investment, and regulatory approvals—creating a defensible competitive position once operational.
The joint venture structure intelligently mitigates risk by combining WLFC's industry connections and leasing expertise with GEM's technical specialization in CFM56 overhauls. This partnership approach allows for shared capital requirements while accelerating market entry compared to independent development.
Initially focusing on CFM56-5B/7B engines is strategically sound as these powerplants represent one of the largest installed fleets globally, powering thousands of A320 and 737 aircraft. The planned capability to service newer generation engines positions the venture for long-term relevance as fleets transition.
While financial details and capacity specifications weren't disclosed, investors should view this as a long-term strategic investment rather than expecting immediate financial impact, particularly with groundbreaking not scheduled until late 2025.
COCONUT CREEK, Fla., March 19, 2025 (GLOBE NEWSWIRE) -- Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”), the leading lessor of commercial aircraft engines and global provider of aviation services, today announced its subsidiary, Willis Engine Repair Center® (“WERC®”), entered into an agreement with independent MRO (Maintenance, Repair and Overhaul) provider Global Engine Maintenance (“GEM”) to create a joint venture named Willis Global Engine Testing (“WGET”) to build an engine test cell facility in West Palm Beach, Florida.
The new joint venture brings together WLFC’s decades of industry experience with GEM’s specialization in offering full CFM56 engine overhauls to address the significant shortage of engine test cell facilities in North America.
“The market currently lacks adequate testing capacity, hindering lessors and operators from efficiently returning engines to service. Through this investment in our services business, we expect to improve turnaround times of customer shop visits for WLFC, GEM, and third-party customers,” said Austin C. Willis, Chief Executive Officer of WLFC. “This joint venture with a proven engine MRO provider efficiently shares each partner’s expertise to mitigate risk and accelerate market entry.”
“This joint venture marks a significant milestone for GEM as we continue expanding our capabilities, elevating our presence in the global engine MRO market to better serve our customers and the broader aviation market. Willis Lease Finance Corporation is a globally recognized leader in aircraft engine leasing, asset management, and services known for its innovative solutions and deep industry expertise. By partnering with WLFC, we are combining our deep expertise in CFM56 MRO with their extensive leasing and asset management solutions to deliver a streamlined, high-quality engine testing experience,” said Dominic Raja, Vice Chairman and President of GEM.”
The facility will initially service CFM56-5B and CFM56-7B engines with the ability to service newer generation engine types in the future. The joint venture plans to break ground on the site in late 2025.
About 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 health pandemics; 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.
About Global Engine Maintenance
Global Engine Maintenance (GEM) is a leading independent CFM56 MRO provider, delivering high-quality, cost-effective, and customized engine solutions to airlines, lessors, and operators worldwide. With 15 years of expertise, GEM stands out for its flexibility, rapid turnaround times, and customer-focused approach, offering full-service capabilities with a wide range of solutions, including overhauls, performance restoration repairs, module swaps, hospital shop visits, and on-wing support. By combining cutting-edge technology, deep industry expertise, and a commitment to operational excellence, GEM provides tailored maintenance programs that maximize engine life and minimize costs.
| CONTACT: | Lynn Mailliard Kohler | |
| Director, Global Corporate Communications | ||
| 415.328.4798 |
FAQ
What is the purpose of Willis Lease Finance's new joint venture WGET?
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