EirTrade Aviation has partnered with RESIDCO to acquire two Airbus A320neo aircraft for teardown, marking a significant milestone as these are the youngest A320neo airframes ever designated for dismantling. Previously operated by Spirit Airlines, these aircraft are just four years and three and a half years old. The disassembly process is currently taking place in Goodyear, Arizona, with components being routed to EirTrade’s facility in Dallas, Texas.
This transaction is aimed at increasing the availability of next-generation used serviceable material (USM), a response to the rising global demand for reliable aircraft parts. As the narrowbody fleet continues to expand worldwide, airlines and maintenance providers are becoming increasingly reliant on high-quality aftermarket components to ensure operational efficiency.
Significance of the Teardown
The two aircraft, identified as MSN 10769 and MSN 10921, registered with Spirit as N950NK and N959NK, are set to yield a variety of high-value parts. These components are not only crucial for maintaining the A320neo fleet but are also interchangeable with other A320 variants, enhancing parts availability across North America and South America. This early-life teardown is particularly noteworthy because it reflects a shift in industry practices.
Bill Thompson, Vice President of Origination & Trading for the Americas at EirTrade Aviation, stated, “We are focused on newer vintage aircraft to ensure that our inventory contains the highest quality rotables which ensure that our customers can be supported with the latest modification standard components.” He also noted the acquisition of four sets of in-demand line replaceable units (LRUs) and built-in equipment (BFE) components associated with the PW1100 engine program, which are expected to be in high demand as the A320neo fleet matures.
Market Implications and Trends
Currently, there are more than 4,400 Airbus A320neo aircraft in commercial service globally, with an additional 7,200 on order. The A320 family, including approximately 6,500 A320ceo aircraft still operational, is anticipated to remain the largest segment of the global commercial fleet for years to come. This steady growth in the fleet size is likely to drive demand for USM, making early-life teardowns increasingly valuable.
Such teardowns provide operators with critical components that meet current regulatory and operational standards, offering a viable alternative to procuring new parts. For lessors and asset managers, transactions involving younger aircraft can unlock value and mitigate exposure to market fluctuations. This strategy reflects a flexible, data-driven approach to managing aviation assets.
The collaboration between EirTrade and RESIDCO is built on a history of successfully addressing complex aviation asset needs. RESIDCO’s aviation division supports the industry through aircraft leasing, teardown financing, and simulator programs, allowing both companies to adapt quickly to market demands while ensuring execution certainty.
As EirTrade initiates the disassembly of these aircraft, all parts are expected to be repaired, certified, and released to the market by the end of the first quarter of 2024. This initiative not only addresses the immediate needs of operators but also aligns with sustainability goals by extending the lifecycle of aircraft components through reuse. The trend of early-life teardowns is likely to continue, as airlines seek to balance fleet renewal with cost efficiency while the aftermarket plays an increasingly strategic role in aviation operations.
