Air France Industries KLM, AerCap Plan LEAP Engine JV
Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) and global aircraft lessor AerCap are in exclusive talks to form a new joint venture focused on LEAP engine leasing, a move aimed at supporting their LEAP Premier MRO (maintenance, repair, and overhaul) customers. The announcement was made during the Paris Air Show on June 17, 2025.
The proposed joint venture would see both companies jointly own and manage a pool of LEAP-1A and LEAP-1B engines, the powerplants used on the Airbus A320neo and Boeing 737 MAX families. The objective is to provide airlines with seamless operational support while engines are undergoing quick-turn or performance restoration shop visits.
In a joint statement, the companies said the venture would enable uninterrupted fleet operations for A320neo and 737 MAX operators, particularly during scheduled MRO events. The initiative is subject to necessary regulatory approvals but signals a deepening collaboration between two major players in the aircraft engine support ecosystem.
“The formation of this joint venture… will strengthen the parties’ strategic collaboration to leverage their combined and complementary expertise in engine leasing, asset management and MRO services, providing comprehensive MRO support to customers worldwide,” said a spokesperson for AFI KLM E&M and AerCap.
Tom Slattery, Executive Vice President at AerCap Engines, emphasized the strength of the existing partnership between the two firms. “This new venture not only underscores the strength of our strategic partnership but also reflects the mutual trust and commitment between our two companies and further demonstrates our confidence in AFI KLM E&M’s capabilities and our shared commitment to operational excellence,” he said.
AerCap, the world’s largest aircraft leasing company, brings a robust portfolio and deep experience in asset management and leasing. AFI KLM E&M, the MRO arm of Air France-KLM Group, offers a global network of repair facilities, along with a strong track record in engine maintenance and support services.
Anne Brachet, EVP of Air France Industries-KLM Engineering & Maintenance, highlighted the value this partnership would bring to operators navigating tight engine availability. “In a LEAP spare market where access to spares will be key for operators, by pooling our respective strengths in engine leasing and MRO services, we are enhancing our ability to support LEAP engine operators with greater flexibility and operational continuity,” she said.
The LEAP engine family, produced by CFM International, powers a growing portion of the global single-aisle aircraft fleet. As more A320neo and 737 MAX aircraft enter service, demand for spare engines and quick-turn maintenance capacity continues to rise. By launching this venture, AFI KLM E&M and AerCap aim to help airlines minimize downtime and maintain operational efficiency.
If finalized, the joint venture would provide a competitive engine leasing solution that bridges the gap between maintenance cycles and availability, ensuring continued service for airlines worldwide.
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