IBA Insider: Widebody Cargo Market and Rising Engine MRO Demand

Yes.

Thanks, Jamie.

Hello, all.

Uh, so yeah, essentially it's kind of a broken record at this point, I guess, in some regards.

We ...

It's essentially based on wide body market capacity, um, where it's at, uh, how it looks in the future at the moment, and the future's not looking great in terms of where aircraft, you know, where you're gonna get them from.

Uh, whether that be, you know, whether that be mid-sized stuff for your, or your large stuff, um, so your A330s for the former and your 777s for your latter, along with your 74s, uh, again, for the latter.

So I guess the, the first, the first question I've got is what would be the biggest reason for the shortage of wide body freighters at the moment?

So since COVID, obviously production delays in the passenger market have kind of kept wide body stuff inside that, that sector.

Um, and of course that's not therefore going to the freighter market.

Uh, and on top of that you've also got 7X delays, which have been going on since...

Well, it was supposed to be in service in 2020, it's now 2026 and it's still not in service.

And 2027 is looking ... is, is the goal, um, although some people think it might slip a bit further.

So all those aircraft, your 777-300ERS in particular are kind of stuck in the passenger market.

People are then working at trying to keep the stuff that's already in the cargo market going for longer, whether that be 744s or your, uh, s- 76s in some regards as well, for your A330s.

Uh, on the triples as well, there's just, it's just not coming ...

Yeah, like I say, it's not coming out the mar- out the passenger market.

Um, within the passenger market you've got seriously high demand because of that, so your fee stock pricing is through the roof.

Um, not many people are gonna pay for it at the mo- at the moment.

And then as you know Jamie, the G90s-

Mm.

They are also worth a fortune at the moment because you cannot get your hands on them.

So if you get, do get an airframe, a 777-300ER airframe, you're likely not gonna be able to get the engines for it unless you have your spare engines pool.

Uh, and then obviously that's the capacity side of things on the supplies.

On the demand side, you've got serious demand with regards to artificial intelligence, uh, semiconductor production.