The aviation industry, often critiqued for its environmental effects, is experiencing a remarkable transformation toward greater sustainability. Imagine a jet engine from one aircraft being repurposed for another instead of being discarded as waste. This concept is becoming a reality as the sector increasingly aligns with circular economy principles.
In essence, a circular economy shifts away from the traditional “take, make, dispose” approach, focusing instead on keeping products and materials in use for as long as possible. By maximizing resource value and minimizing waste, circular economy principles aim to enhance reduction, reuse, and recycling efforts at every stage. These practices are starting to influence how the aviation sector designs, operates, and decommissions its aircraft, leading to a fundamental shift in its business strategies.
Moreover, the industry is addressing the safety considerations tied to these sustainable initiatives, ensuring that recycled materials and sustainable aviation fuels adhere to strict regulatory guidelines.
Transitioning from linear to circular: A new roadmap
The integration of circular economy practices in aviation is still nascent, but progress is accelerating. Historically, decommissioned aircraft were left to rust in desert storage, their parts stripped down casually.
Now, that traditional lifecycle is evolving into a more restorative model. Thanks to innovations in recycling and refurbishment, over 90% of the weight of decommissioned aircraft can now be salvaged or recycled. Approximately 40–50% of an aircraft is extracted as operational parts, with most of the remaining materials being reclaimed as raw materials.
Remarkably, nearly all components of modern jet engines are recyclable or reusable when managed properly—a clear indication of the strides made in circular practices. This shift benefits not only the environment but also the bottom line. Aircraft that reach the end of their operational life are no longer seen as junk but rather as valuable assets. Critical components are removed, evaluated, and refurbished to a condition resembling “as-good-as-new.”
Engines play a vital role in this transition, often regarded as the most valuable parts of aircraft. Frequently, a used engine in excellent condition can exceed the value of the airframe it originally belonged to. These engines can be transferred to different aircraft or added to leasing pools, extending their functional lifespan for years. A retired engine from one airline can provide a cost-effective upgrade for another.
At Aeras Aviation, we’ve witnessed this transformation firsthand. Initially starting as a traditional parts supplier, we have now evolved into a comprehensive lifecycle partner for esteemed aviation companies worldwide, including Lufthansa, DHL, Air France, and Delta Airlines. While the shift towards circularity presents both economic and ecological benefits, safety remains a non-negotiable requirement in the sector.
Engines given a new lease on life
Jet engines exemplify the implementation of circular principles. Designed for multiple overhauls, these intricate machines undergo careful inspections, refurbishments, and part replacements to extend their usability. Components once deemed obsolete are transformed into profitable, ready-to-service assets.
Parts that cannot be reused are frequently recycled. Valuable metals like titanium, nickel, and cobalt are melted down and reintegrated into the aerospace supply chain. What was once an engine can become a turbine blade or find utility in entirely different industries.
Across the aviation sector, comprehensive lifecycle programs empower airlines and maintenance organizations to prolong engine usability.
Rather than purchasing new engines, many are opting to source, refurbish, and reintroduce existing ones—effectively extending their life while significantly reducing costs and carbon footprints. This epitomizes sustainability on a grand scale.
The economic justification for circularity
This paradigm is no longer an isolated phenomenon. Airlines, working in a cost-restrained, post-pandemic environment, are maintaining aircraft assets longer than ever and require reliable, certified partners to assist in this endeavor. The cost of new aircraft is on the rise—narrow-body models like the Boeing 737 or Airbus A320 now exceed $100 million—while global supply chain disruptions have made new deliveries less predictable.
Consequently, the market for used serviceable materials (USM) is thriving. Reusing or refurbishing engine components to original equipment manufacturer (OEM) standards can save 20–40% compared to purchasing new parts. Both airlines and maintenance, repair, and overhaul (MRO) providers are increasingly aware of this, as are investors.
Simultaneously, regulators and ESG-focused investors are demanding that aviation take accountability beyond just flight emissions. The sector’s commitment to achieving net-zero emissions by 2050 necessitates a comprehensive reevaluation—and circularity is an integral aspect of this strategy. The European Union’s initiative toward a circular economy, including stricter regulations on aircraft dismantling and waste management, underscores that this is not merely a passing trend but a policy-supported transition. Companies that proactively adapt will not only remain compliant but also become industry leaders.
Shifting the industry mindset
Embracing circularity allows for the development of new business models: engine leasing, power-by-the-hour agreements, predictive maintenance, and more. These models not only enhance engine longevity but also foster recurring revenue and stronger customer ties.
Ultimately, the aviation industry is demonstrating that sustainability and profitability can coexist—and even support each other. If a heavily regulated and safety-conscious sector like aviation can successfully adopt circularity, other industries can certainly follow suit. This presents an opportunity for business leaders across the board.
Taking flight responsibly
The circular economy in aviation has transitioned from a theoretical concept to a viable, scalable approach that is altering how value is generated. It involves rethinking every decommissioned component as an opportunity rather than waste. It’s about maximizing the longevity of existing resources instead of defaulting to the creation of new ones.
By re-evaluating what is possible at the end of an engine’s life, we are not merely preserving parts; we are paving the way for a smarter, more sustainable future in air travel.
Demetrios Bradshaw is the CEO of Aeras Aviation.