Navigating the new norm: supply chains, USM and trust in the aviation aftermarket

Navigating the new norm: supply chains, USM and trust in the aviation aftermarket

By James Bennett, Chief Commercial Officer, AerFin

The aviation aftermarket has entered a period many are calling the “new norm” – a market defined by constrained supply chains, extended turnaround times and intense competition for material. The question is whether that label truly fits.

There is no doubt that disruption has lasted longer than first anticipated. New aircraft deliveries remain under pressure. Repair turn times continue to test operators’ patience. Feedstock is tight as aircraft stay in service longer, and leases are extended. Against that backdrop, used serviceable material (USM) has shifted from being a cost-saving option to playing an increasingly critical role in keeping fleets operational and costs under control.

But “new norm” can be too definitive a phrase. Cycles turn. OEM output will recover. Repair performance will improve. At some point, availability will ease. The real issue is not whether today’s constraints last forever – it is how the industry responds while they persist.

Despite the pressure points, the fundamentals remain strong. Airline demand continues to outpace available capacity, and global MRO spend is forecast to reach approximately $139bn in 2026. The aftermarket is buoyant – but buoyant in a very constrained environment. That tension is shaping behaviour across the sector. One of the defining challenges is feedstock. Aircraft are being flown for longer, leases are being extended, and new aircraft deliveries remain under pressure. Together, these factors have limited the pipeline of assets entering teardown, limiting the flow of material back into the market. Add to that the turnaround time challenges in both new part manufacture and component repair, and you have something of a perfect storm.

This dynamic is no longer a short-term anomaly. What was once expected to normalise within a few years has instead become a structural feature of the market. This is increasingly being referred to as the new norm. Availability of inventory remains constrained, and even the largest organisations are acknowledging that this could persist for some time.

At AerFin, this environment has reinforced – not reduced – our conviction.

Since 2021, we have acquired 159 whole assets across airframes and engines. That includes 55 airframes and 104 engines. This is not opportunistic buying. It is a deliberate strategy built on scale, lifecycle insight, and long-term confidence in the aftermarket. AerFin’s response has been to lean into scale, optionality and lifecycle strategy. Historically focused on narrowbody and regional aircraft. AerFin has expanded significantly into widebody assets, acquiring 60% of A330s that came to market in 2023 and 2024, investing in 777-300ERs alongside continued investment in core platforms. The aim is simple – to give customers more choice, greater certainty and better cost outcomes.

When you can demonstrate not only what you have historically delivered, but the assets you already control and the material pipeline that will follow, it changes the conversation. In a volatile market, access to inventory builds confidence. Confidence builds trust.

The teardown of relatively young aircraft, including A320neo assets, is a case in point. These teardowns are not about end-of-life. They are strategic responses to where material is most urgently required. Each teardown releases around a thousand high-quality parts back into the market, supporting operators navigating engine and component shortages.

Alongside asset acquisition, we have continued to invest in infrastructure. A new state-of-the-art facility in Wales has expanded engine disassembly capacity to 26 bays, supporting up to 200 engine events per year. Combined with facilities and teams in Miami, Singapore and Dublin, this underpins a truly global operating model. Importantly, we are not standing still and waiting for conditions to improve. We are operating confidently within them.

There is ongoing debate about how long today’s constraints will last. Some see a prolonged structural shift. Others expect gradual normalisation as production rates recover and repair performance improves. Our view is pragmatic. Supply chains will stabilise over time. Turnaround times will improve. But resilience, scale and foresight will continue to matter long after that happens.

Sustainability also remains central to that proposition. AerFin’s model is built around reuse, repair and responsible recycling, reducing the need for new manufacture while extending the operational life of aircraft and engines. Increasingly, he notes, airlines are asking suppliers to evidence those credentials as part of formal procurement processes, and USM plays a vital role in delivering both cost efficiency and environmental benefit.

Consolidation across the sector is likely to continue. Pressure on labour and supply chains may persist for some time. Yet the industry is adapting – becoming leaner, more collaborative and more strategic in how assets are managed across their lifecycle.

The “new norm” may not be permanent. But disciplined execution in challenging conditions builds stronger businesses.

For operators and lessors navigating this period, the priority is clear – work with partners who have the inventory, the infrastructure and the conviction to deliver. In a constrained market, trust is not a soft concept. It is built on assets owned, material available, and promises kept.

That is how we are navigating this cycle. And that is how we continue to give our customers the confidence to keep moving forward.