Ryanair signs 'multibillion dollar' spare parts contract with engine maker CFM

Safran CEO Olivier Andriès and Ryanair CEO Michael O'Leary share a laugh as an agreement was signed ith jet engine maker CFM International to supply Ryanair with guaranteed spare parts for two planned engine‑maintenance shops. CFM is a 50/50 joint venture between France’s Safran Aircraft Engines and the US firm GE Aerospace.

Ryanair has signed a "multibillion dollar" contract with jet engine maker CFM International to supply the airline with guaranteed spare parts for two planned engine‑maintenance shops, it said on Tuesday.

Ryanair plans to independently open two engine maintenance, repair, and overhaul (MRO) shops by 2029.  The maintenance shops will support its fleet of almost 2,000 Boeing 737 engines. "For the last 30 years, CFM has been maintaining all of Ryanair’s CFM56 engines under a long-term 'power by the hour' contract. However, from 2029 onwards, Ryanair expects to bring the maintenance of its engines in-house, and we are pleased to do so with the help and support of our partners CFM," said Ryanair chief executive Michael O'Leary. 

"Ryanair will place substantial orders for initial spare parts provisioning with CFM to support the opening of each of these two Ryanair engine maintenance facilities. When Ryanair takes over all its engine maintenance in-house, we expect this contract will be worth in excess of $1bn (€840m) annually to CFM in spare engines and spare parts supplies."

CFM is a 50/50 joint venture between France’s Safran Aircraft Engines and the US firm GE Aerospace.  "This new spare parts agreement extends our 30-year partnership with CFM, and we look forward to working closely with CFM, Safran, and GE to support what will be one of the world’s largest commercial aircraft fleets, and one of the world’s largest packages of Boeing 737 engines too.”

The deal signed on Monday will last for 15 years and will see Ryanair purchase all its engine parts from CFM, without resorting to independent third-party shops.  The multi-year agreement will see Ryanair purchase all its engine spare parts directly from CFM as Ryanair grows to 800 Boeing 737 family aircraft, and over 2,000 CFM engines. The contract will support Ryanair’s existing and future CFM56-7B and LEAP-1B engines, which are fitted to the airlines Boeing 737 NG and MAX aircraft.