AerCap and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) have signed a definitive agreement to establish a 50:50 joint venture focused on leasing CFM LEAP spare engines, strengthening global support for the rapidly expanding fleet of LEAP-powered aircraft.
The agreement formalises the memorandum of understanding announced at the Paris Air Show in 2025 and remains subject to regulatory approvals.
The new venture is designed to address the growing demand for spare engine availability by combining AerCap’s engine leasing expertise with AFI KLM E&M’s maintenance, repair and overhaul (MRO) capabilities. Together, the partners aim to provide flexible spare engine solutions for airlines operating LEAP-powered aircraft worldwide, helping minimise aircraft downtime and improve fleet availability.
As part of the initial phase, the joint venture plans to acquire approximately 40 new CFM LEAP-1A and LEAP-1B spare engines, with deliveries scheduled through 2032. The first four engines are expected to enter the leasing pool by early 2027, subject to the required regulatory approvals.
The initiative comes at a time when the global LEAP fleet continues to expand rapidly, increasing demand for spare engine access as operators seek to maintain high fleet utilisation while managing scheduled maintenance events and unexpected engine removals.
Commenting on the agreement, Tom Slattery, Executive Vice President, AerCap Engines, said the partnership brings together two complementary strengths to support airline customers with reliable and flexible engine availability.
“Through this joint venture, we will combine AerCap’s engine leasing expertise with AFI KLM E&M’s world-class maintenance, repair and overhaul capabilities to help meet the growing demand for LEAP spare engines. Together, we will provide reliable and flexible engine support solutions to AFI KLM E&M customers operating LEAP-powered aircraft worldwide, ensuring they have access to critical spare capacity as LEAP-powered fleets continue to expand,” Slattery said.
Anne Brachet, Executive Vice President, Air France-KLM Engineering & Maintenance, described the agreement as a strategic milestone for supporting the evolving LEAP aftermarket.
“The signing of this agreement to establish a joint venture with AerCap marks a significant strategic step in addressing the evolving needs of the LEAP engine market. By combining AerCap’s expertise in engine leasing with AFI KLM E&M’s extensive MRO knowledge and capabilities, we are creating a long-term partnership that will help operators secure access to critical spare engine capacity as demand for LEAP-powered aircraft continues to grow,” Brachet said.
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For the global MRO sector, the partnership reflects a broader industry trend toward integrating engine leasing, maintenance services and asset management to address ongoing engine supply constraints and rising aftermarket demand. With LEAP-powered fleets continuing to expand across both Airbus A320neo and Boeing 737 MAX operators, access to spare engines is becoming increasingly important for maintaining operational continuity, reducing aircraft-on-ground (AOG) events and improving fleet resilience.
The joint venture is expected to play a key role in strengthening aftermarket support for LEAP operators by providing airlines with faster access to spare engine assets while complementing AFI KLM E&M’s global maintenance network and AerCap’s established engine leasing portfolio.
