Saudia and Air France-KLM Sign Engine Agreement

Saudia and Air France-KLM Sign 13-Year Engine Support Agreement

Saudia Group has formalized a landmark 13-year engine support agreement with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to service 86 GE90 engines that power its Boeing 777 fleet. Announced at the Paris Air Show 2025, the contract designates AFI KLM E&M’s facilities at Paris Charles de Gaulle and Orly airports as the primary sites for maintenance, repair, and overhaul (MRO) operations.

Strategic Partnership and Scope of Services

This long-term collaboration builds upon a strategic memorandum of understanding signed in Riyadh in December 2024 during French President Emmanuel Macron’s state visit. The MoU established a framework for enhanced industrial cooperation, focusing on aircraft maintenance, local content development, and commercial synergy between Saudia Group and the Air France-KLM Group.

Under the terms of the agreement, AFI KLM E&M will deliver comprehensive engine support services, including performance analytics and predictive maintenance through its PROGNOS® platform, on-wing services, and field support. These integrated solutions aim to optimize engine performance and reduce aircraft downtime, thereby bolstering Saudia’s operational reliability and improving the passenger experience as the airline expands its long-haul network.

Industry Context and Competitive Landscape

The partnership emerges amid ongoing challenges in the global aviation sector, where AFI KLM E&M, like many industry participants, continues to contend with post-pandemic supply chain disruptions. These disruptions have introduced uncertainties into long-term maintenance contracts, prompting close scrutiny from market observers regarding the resilience of such collaborations in the face of persistent logistical bottlenecks and parts shortages.

Competitive pressures also shape the environment. Rival carriers, including Emirates, remain cautiously optimistic about Boeing’s production recovery but continue to face obstacles in accelerating aircraft deliveries. Meanwhile, the engine maintenance market is becoming increasingly competitive, with manufacturers and leasing companies expanding their service offerings. AFI KLM E&M’s joint venture with AerCap to manage CFM International Leap engines exemplifies this broader industry trend toward diversified engine support solutions.

Despite these challenges, Saudia’s agreement with Air France-KLM highlights its commitment to partnering with globally recognized aviation leaders. The collaboration forms a critical element of Saudia’s transformation strategy, aimed at enhancing operational capabilities and supporting the airline’s ambitious growth objectives in international markets.