A fan assembly is provided. The fan assembly includes a fan, a fan casing circumscribing the fan, and a fan casing heating system in thermal communication with the fan casing. The fan includes a hub, and a plurality of fan blades extending from the hub. Each fan blade of the plurality of fan blades terminates at a respective blade tip. A clearance gap is defined between the fan casing and the blade tips. The fan casing heating system is configured to apply heat to the fan casing when the fan is operating in a first operational mode, and remove the applied heat when the fan transitions into a second operational mode.