Ryanair cuts deal with CFM to bring engine maintenance in-house
Irish low-cost carrier (LCC) Ryanair have signed a 15-year services agreement with engine manufacturer CFM to bring maintenance capabilities in-house.
The terms of the deal will see the airline buy US$1 billion in spare parts annually from CFM, a joint venture between Safran and GE Aerospace. Ultimately, by 2029 Ryanair plan to open two engine maintenance shops that will be responsible for maintaining their 2,000 CFM engines.
Ryanair Group CEO Michael O’Leary explained that the move will reduce costs and expedite maintenance timelines. Currently, the LCC outsources its maintenance to CFM, which leaves Ryanair vulnerable to extensive supply chain backlogs and disruption. The ability to control their own turnaround times would be a ‘huge benefit, O’Leary explained. He said:
[This] is the way we will be able to limit cost inflation. There is no doubt there is going to be significant cost inflation on new aircraft, engines and engine repair for the next decade, until the supply chains begin to smooth out.
H Lawrence Culp, junior chairman and CEO of GE Aerospace, added:
We value the opportunity to work with them on solutions to increase capacity and reduce turnaround time. This MoU demonstrates our commitment to an open MRO ecosystem that supports growing demand while reducing cost of ownership,
Other airlines in Europe do their own engine maintenance, including Air France and Lufthansa. However, Ryanair’s move is a significant departure from the typical budget airline model, where maintenance is outsourced.
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