AerCap and Air France Industries KLM Engineering & Maintenance to Form Engine Leasing Joint Venture

AerCap has today announced that they have entered into exclusive negotiations today with Air France Industries KLM Engineering & Maintenance to form a LEAP engine leasing joint venture to support AFI KLM E&M LEAP Premier MRO customers worldwide.

Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to form a LEAP engine leasing joint venture - Courtesy AerCap

On Tuesday (June 17, 2025), from the Paris Air Show 2025, AerCap announced that they have entered into exclusive negotiations with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to form a LEAP engine leasing joint venture.  The new JV will support AFI KLM E&M  CFM International LEAP Premier MRO customers worldwide.  Building on their existing corporation around lease engines, the partners intend to jointly own and manage a fleet of CFM International LEAP-1A and LEAP-1B engines, enabling continuous Airbus A320neo and Boeing 737 MAX fleet operations, while engines are going for a quick-turn or performance restoration shop within the AFI KLM E&M MRO network.

In Tuesday’s announcement, AerCap Engines’ EVP, Tom Slattery, said,

“We have been very pleased with the high level of service and support provided by AFI KLM E&M over the years.  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. We look forward to advancing this successful collaboration through our new joint venture.”

Also commenting on the new joint venture, Air France Industries-KLM Engineering & Maintenance’s EVP – Anne Brachet, said,

“This partnership represents a new chapter in our strategic relationship with AerCap.  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.  This new Joint Venture reflects our shared commitment to delivering innovative, customer-focused solutions that meet the evolving needs of the global aviation industry.”

Subject to any necessary regulatory approvals, the 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. Additionally, the joint venture will benefit LEAP engine operators by offering the combined experience of a global airline MRO that operates and maintains new generation aircraft and engines with that of a world class aircraft and engine lessor.

Air France Industries KLM Engineering & Maintenance is a major multi-product MRO provider. With a workforce of over 12,800, AFI KLM E&M offers comprehensive technical support for airlines, ranging from engineering and line maintenance to engine overhaul, aero structure, and fan thrust reverser support, as well as the management, repair, and supply of aircraft components, structured around a powerful logistics network.  The company supports almost 3,000 aircraft operated by 200 major international and domestic airlines worldwide.

AerCap Holdings N.V. (NYSE: AER) is the global leader in aircraft leasing and maintains one of the most attractive order books in the industry. The company serves around 300 customers in 80 countries with comprehensive fleet solutions. AerCap is headquartered in Dublin and maintains offices in Shannon, Miami, Memphis, Singapore, Amsterdam, Shanghai, Dubai, Seattle, Toulouse, and other locations around the world.

Source: AerCap/PRNewswire