What happened
AerSale (ASLE 5.47%) completed a major milestone toward commercializing a highly anticipated product, and its stock took flight as a result. Shares of AerSale had gained 10% for the week as of Thursday afternoon, according to data provided by S&P Global Market Intelligence, on hopes that the new product would soon be ready for commercialization.
So what
AerSale is an aerospace company focused primarily on the sale and lease of used aircraft, as well as maintenance, repair, and overhaul services for plane owners. The company's core business of remodeling and selling aircraft has been sluggish this year as a result of a slowdown in demand for cargo lift. But one of its more promising future offerings is making progress on moving through the regulatory approval process.
Late Monday, AerSale announced it had successfully completed all certification flight testing for AerAware, an enhanced flight vision system for older Boeing models. Prior to the completion of the tests, the Federal Aviation Administration approved all modifications to the system.
"We are pleased to reach this milestone in the development of AerAware, and we look forward to proceeding to Supplemental Type Certification and commercialization of the product," said CEO Nicolas Finazzo in a press release.
Now what
From the moment AerSale joined the public markets back in 2020, a lot of the focus from investors has been on the potential for AerAware. Thousands of 737s are airborne at any given time, and many of them are the older models that AerAware is designed for. If the product gains traction as the company hopes it will, it would have an easy path toward developing similar systems for other aircraft and expanding its potential market.
AerSale's not there yet, but it's a lot closer now with the completion of these flight tests. Investors are understandably excited about what this could mean for the company in the quarters to come.
