07 Nov 2025
Power by the Hour – Rethinking Engine Maintenance Economics
Power by the Hour, or PBH, has become one of the most important shifts in how the aviation world thinks about engine maintenance. Instead of paying huge repair bills whenever an engine breaks down or needs a shop visit, airlines now pay a simple rate for every hour they fly. It sounds small, but it changes everything about how airlines plan their costs, how lessors protect engine value, and how everyone forecasts an engine’s long-term worth.
In a market where engines can represent more than half of an aircraft’s total value, PBH does more than streamline maintenance. It reshapes risk, improves predictability, and creates a shared incentive for keeping engines healthy for as long as possible.
What Exactly Is PBH and Why Is It Changing Maintenance Economics?
Power by the Hour (PBH) sounds simple, but it’s one of the biggest shifts in how airlines and lessors think about engine maintenance. Traditionally, airlines had to deal with huge, unpredictable engine costs. One month, everything was fine; the next month, a single engine could need a shop visit worth several million dollars. That kind of uncertainty makes budgeting a nightmare, especially for airlines running tight margins.
PBH flips this entire model.
Instead of paying for repairs when they happen, airlines pay one fixed amount for every hour the engine flies. For example, if an airline flies 500 hours in a month, they pay 500 hours × their PBH rate. That’s it. No surprise invoices, no emergency cash calls, no massive shop-visit bills out of nowhere.
Behind the scenes, the responsibility shifts. The OEM (like Rolls-Royce, Pratt & Whitney, GE) or a trusted MRO provider takes on the full job of keeping the engine healthy. They plan the repairs, manage the parts, handle the logistics, and carry the financial risk of sudden failures.
This changes the economics in a big way:
The airline gets predictability.
Costs move from unpredictable capital expenses to smooth operating expenses. CFOs love this because they can plan ahead with more confidence.
The maintenance provider gets motivation.
If the engine stays healthy and spends more time in the air, they get paid more. If it breaks often, they lose money. That creates an incentive to keep engines running reliably for as long as possible.
The lessor gets better protection.
With consistent maintenance by top-tier providers, the engine’s value is easier to protect and forecast over time.
PBH works because everyone’s incentives are finally aligned. When the engine performs well, every party wins. And in a world where engines are becoming more complex, expensive, and sensitive to operating conditions, that alignment is more important than ever.
How PBH Reshapes Cost Control for Airlines and Lessors?
PBH completely transforms the way both airlines and lessors manage the financial side of engine maintenance. For airlines, engine upkeep has always been one of the most unpredictable and expensive parts of running a fleet. A single shop visit can cost millions, and failures often come with no warning. PBH replaces that uncertainty with stability by converting these huge, irregular expenses into small, consistent per-hour payments. This helps airlines budget more accurately, protect themselves from surprise failures, and keep cleaner, more predictable cash flows. It also removes the need to store piles of expensive spare parts because most PBH agreements include access to component pools, spares, and logistics support from the OEM or MRO provider. In short, PBH shifts financial risk away from the airline and turns maintenance into a manageable operating cost instead of a dangerous capital expense.
Lessors benefit just as much, but for different reasons. With PBH in place, they gain confidence that their engines are being maintained by approved providers using high-quality processes, which directly protects the long-term value of their assets. The agreement also ensures that, if an airline defaults, the engine isn’t returned in poor condition with major repairs overdue the funding and planning for maintenance are already baked into the PBH structure. During downturns, PBH becomes even more useful. Instead of seeing aircraft grounded and generating no income, lessors can restructure leases so that engines earn money per hour flown, keeping cash flow alive even when demand is weak. PBH also helps lessors stay competitive. Many now include PBH options within their lease packages because airlines prefer the stability and predictability it brings. Altogether, PBH rewrites how costs are controlled, shifting risk from airlines to maintenance experts while giving lessors a more secure and consistent way to protect engine value and revenue.
How PBH Reshapes Asset Life Planning for Airlines and Lessors
PBH also changes how airlines and lessors think about the entire lifespan of an engine. For airlines, it takes away much of the stress and uncertainty involved in planning heavy maintenance. Instead of juggling unpredictable shop visits or worrying about whether an engine will last until the end of a lease, they can focus on flying while the OEM or MRO handles the technical side. Because the PBH provider is paid based on flight hours, they’re strongly motivated to keep the engine running smoothly and avoid unnecessary downtime. This often leads to better uptime, more accurate maintenance scheduling, and fewer disruptions for the airline. Access to expert knowledge from the OEM also means airlines get high-quality repairs and advanced monitoring technologies, which is especially helpful for older fleets that require more attention.
For lessors, PBH makes long-term planning easier by ensuring consistent, professional maintenance throughout the engine’s life. When engines are maintained under PBH, their overall health tends to be better, which protects and sometimes even extends their useful life. Clear and well-organised maintenance records from PBH providers also make end-of-lease returns far simpler and faster, which is a huge advantage in a market where every day of downtime affects value. A PBH-maintained engine also holds its value more predictably, because buyers trust the documented care it has received. This helps lessors plan their future leasing cycles, choose the right time to re-lease or sell an engine, and forecast residual values with more confidence. In short, PBH doesn’t just manage maintenance, it supports smarter, long-term decisions that improve the engine’s overall life and performance for everyone involved.
How PBH Reshapes Residual Value Forecasts for Airlines and Lessors
PBH also plays a big role in shaping how airlines and lessors predict an engine’s future value. For airlines, having an engine on PBH gives them a major advantage when it comes time to sell or return the aircraft. Engines that have been maintained under PBH usually have cleaner records, more consistent maintenance quality, and fewer surprises hidden in the paperwork. This makes them more attractive to buyers and gives airlines a clearer idea of what the engine will be worth years down the line. A predictable maintenance history also means fewer arguments during inspections and fewer unexpected costs at the end of a lease. All of this helps airlines plan better and protect themselves from sudden drops in value.
For lessors, PBH offers even more control over residual value. Since PBH guarantees that maintenance is done by approved experts and follows strict standards, lessors can be more confident that their engines will stay healthy and hold value over the long term. This also gives them an edge when marketing the engine, as many airlines prefer assets with well-documented PBH maintenance histories. By building PBH into their lease packages, lessors can safeguard the engine’s future price and reduce the risk of value erosion caused by poor maintenance or missing records. PBH also creates a natural alignment between the airline, the lessor, and the service provider — everyone benefits when the engine stays reliable and valuable. Because of that, PBH isn’t just a maintenance tool; it’s a smart way to protect long-term value and keep leasing strategies stable.
What PBH Means for the Future of Engine Maintenance
PBH is slowly changing the way the aviation industry approaches engine care, cost planning, and long-term asset management. As engines become more advanced and more expensive to maintain, airlines and lessors are realising that traditional maintenance models simply can’t keep up with the complexity or the financial risk. PBH offers a way to simplify that entire process by giving responsibility to the experts who understand these engines best — the OEMs and specialised MRO providers. This shift also supports the growing use of predictive maintenance technologies, where real-time data helps spot issues before they turn into major repairs. Over time, PBH will make engine maintenance feel less like a series of unpredictable events and more like a smooth, continuous service that keeps aircraft reliable and available.
For lessors, PBH is likely to become an even more important part of lease structuring. As the industry deals with rising engine costs, supply chain constraints, and tighter financial pressures, PBH gives lessors a practical way to protect the long-term value of their assets. It encourages better maintenance behaviour, improves record compliance, and reduces the risk of costly surprises during end-of-lease inspections. Airlines, meanwhile, benefit from steadier costs and fewer operational disruptions. The industry is moving toward partnerships built on shared responsibility rather than isolated transactions. PBH is a big step in that direction, and as engine technology continues to evolve, its role in ensuring financial stability and asset health will only grow.
Conclusion – How PBH Is Rewriting Engine Economics?
PBH has pushed the industry to rethink how engine value, risk, and long-term performance are managed. Instead of unpredictable repair bills and complicated maintenance planning, airlines now have a model that gives them stability, cleaner forecasting, and access to expert support without carrying the full financial burden. Lessors benefit too, because PBH creates a structured maintenance pathway that protects engine health, preserves residual value, and reduces sudden shocks during transitions or repossessions.
The real shift is philosophical. PBH moves engine care from a reactive model to a strategic one. It puts everyone on the same side, working toward longer engine life, fewer shop visits, stronger records, and more reliable asset behaviour. As engine technology grows more complex and markets become more volatile, PBH will continue to shape how airlines plan their costs and how lessors safeguard their portfolios.
Engine maintenance has always been one of the biggest variables in aviation. PBH doesn’t remove the challenges, but it brings clarity and shared responsibility—two things the industry needs now more than ever.
FAQs
1. What exactly is a PBH agreement?
A PBH agreement is a performance-based maintenance plan where an airline pays a fixed fee for every hour an engine flies. Instead of facing unpredictable repair bills, airlines get steady, predictable costs while the maintenance provider takes on the risk of engine issues.
2. Why do airlines prefer PBH over traditional maintenance models?
Airlines choose PBH because it protects their cash flow. Major engine events can cost millions, and PBH eliminates those sudden expenses. It also improves budgeting, reduces spare-part inventory needs, and keeps engines in service for longer.
3. How does PBH benefit aircraft lessors?
PBH gives lessors confidence that their engines are being maintained to high standards by approved providers. It also protects long-term asset value, simplifies end-of-lease returns, and reduces the risk of unexpected maintenance bills after repossession.
4. Does PBH improve an engine’s residual value?
Yes. Engines maintained under PBH often hold stronger value because the work is done by OEMs or top-tier MROs with full documentation. This consistent, verifiable maintenance history makes engines more attractive to future buyers or lessees.
5. Are PBH programs only for newer engines?
No. PBH programs are increasingly common for mature engine fleets too. Older engines benefit from expert oversight, predictable maintenance schedules, and reduced operational downtime, making PBH a useful option across all engine age groups.
