{"id":242621,"date":"2025-05-15T05:25:20","date_gmt":"2025-05-15T05:25:20","guid":{"rendered":"https:\/\/peraltafinancing.com\/airbus\/services-are-driving-revenues-and-profits-in-difficult-times-part-i\/"},"modified":"2025-05-15T05:25:20","modified_gmt":"2025-05-15T05:25:20","slug":"services-are-driving-revenues-and-profits-in-difficult-times-part-i","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=242621","title":{"rendered":"Services are driving revenues and profits in difficult times, Part I"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><strong>Subscription Required<\/strong><\/p>\n<p><strong>By Karl Sinclair<\/strong><\/p>\n<p><strong>May 15, 2025, \u00a9 Leeham News:<\/strong> The aerospace industry is a maintenance-intensive operation, where strict regulatory rules drive many requirements.<\/p>\n<p>Assets must be constantly maintained, governed by the time or usage an airline derives from them.<\/p>\n<p>This goes for airframes, engines, and human resources.<\/p>\n<div id=\"attachment_46780\" style=\"width: 675px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/leehamnews.com\/wp-content\/uploads\/2025\/05\/Credit-Boeing-Global-Services.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-46780\" class=\"wp-image-46780 size-full\" src=\"https:\/\/leehamnews.com\/wp-content\/uploads\/2025\/05\/Credit-Boeing-Global-Services.png\" alt=\"\" width=\"665\" height=\"380\"\/><\/a><\/p>\n<p id=\"caption-attachment-46780\" class=\"wp-caption-text\"><strong>Services account for a large part of aerospace corporate profits. Boeing&#8217;s Global Services division is the most profitable part of the company. Photo credit: Boeing Global Services.<\/strong><\/p>\n<\/div>\n<p>Some equipment manufacturers derive little or no profits from product sales, but they make lucrative and long-term revenues from attached maintenance contracts.<\/p>\n<p>Political factors are also coming into play in the services segment.<\/p>\n<p>As airlines are forced into a difficult and expensive decision regarding the payment of tariffs on new aircraft they acquire, many could opt for a different strategy.<\/p>\n<p>Older aircraft that were due for replacement with newer, more fuel-efficient jets will be sent into MRO facilities for an additional heavy-maintenance check.<\/p>\n<p>With falling fuel prices playing less of a factor in the acquisition decision, airlines will be tempted to defer deliveries (thus avoiding the payment of tariffs) using their current assets in their installed fleets.<\/p>\n<p>Extending an aircraft&#8217;s useful life by another six to seven years will allow carriers to simply wait out the tariff threat when things return to normal.<\/p>\n<p><em>LNA<\/em> looks into the growing services revenue segment among various companies in the aviation industry.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Subscription Required By Karl Sinclair May 15, 2025, \u00a9 Leeham News: The aerospace industry is a maintenance-intensive operation, where strict regulatory rules drive many requirements. Assets must be constantly maintained, governed by the time or usage an airline derives from them. This goes for airframes, engines, and human resources. Services account for a large part [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":242622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12027],"tags":[15689,650,3341,13014,18426,4834,4319],"dealstore":[],"offerexpiration":[],"class_list":["post-242621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airbus","tag-difficult","tag-driving","tag-part","tag-profits","tag-revenues","tag-services","tag-times"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Services are driving revenues and profits in difficult times, Part I - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=242621\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Services are driving revenues and profits in difficult times, Part I - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Subscription Required By Karl Sinclair May 15, 2025, \u00a9 Leeham News: The aerospace industry is a maintenance-intensive operation, where strict regulatory rules drive many requirements. Assets must be constantly maintained, governed by the time or usage an airline derives from them. This goes for airframes, engines, and human resources. 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