May 8 (Reuters) - The head of aircraft leasing giant

AerCap ( AER ) predicted on Wednesday that tightness in global

jet markets would last through the rest of the decade, fuelled

by supply chain issues and conservatism on production among

engine makers.

Demand for air travel has rebounded since the pandemic,

while planemakers are struggling to get back to production

levels seen before the health crisis badly disrupted markets.

"I believe it will take until the end of the decade before

the airframers and the supply chain get together and work it

out; that will be 2030, I suspect," CEO Aengus Kelly told a

company investor conference.

He was speaking after the world's largest leasing company

gambled on continued bottlenecks in aircraft repair shops by

agreeing to buy 100 spare LEAP engines made by CFM, which powers

all Boeing ( BA ) and some Airbus narrow-body jets.

The engines will be managed by Shannon Engine Support, a

spares joint-venture between AerCap ( AER ) and France's Safran

, which co-owns CFM along with GE Aerospace.

Shortages of spare engines, especially those made by CFM

rival Pratt & Whitney, have forced airlines to ground

jets while waiting for repair slots, which are already scarce

due to faster than expected wear-and-tear in harsh climates.

Kelly, who has overseen AerCap's ( AER ) gradual transformation from

a rump containing the bad assets of defunct Irish leasing empire

GPA to the world's largest lessor through acquisitions, spelled

out the stakes involved in managing maintenance delays.

AerCap ( AER ) says more is spent on maintaining a plane in MRO or

repair stations than it costs to buy it in the first place.

"The MRO shops are like dentists. They only get paid when

they open something up, take something out and put something

back in. The difference with these engines is it's a million

bucks to put something back in every single time," Kelly said.

"And if you don't know what you're doing, you will find

yourself spending millions more. You will find yourself going to

MROs that you don't have leverage with, where you're at the back

of the queue."

Despite announcing an inaugural cash dividend, Kelly said

the Dublin-based leasing company's primary method for returning

resources to shareholders would remain share buybacks.

AerCap ( AER ) said its board had approved a new $500 million share

repurchase programme through Dec. 31.