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Ryanair Secures CFM Agreement for 2,000 Boeing 737 Engines

Ryanair Secures Long-Term Engine Spare Parts Agreement with CFM
Ryanair has entered into a multi-year memorandum of understanding with CFM to procure engine spare parts directly from the manufacturer. This agreement is designed to support a fleet projected to include nearly 2,000 Boeing 737 engines by the end of the decade. The contract encompasses support for both the CFM56-7B and LEAP-1B engines, which power Ryanair’s Boeing 737 Next Generation and 737 MAX aircraft respectively. CFM, a joint venture between Safran Aircraft Engines and GE Aerospace, has been a longstanding partner of Ryanair, providing engine maintenance services for approximately 30 years.
Strategic Shift Toward In-House Maintenance
The new agreement aligns with Ryanair’s strategic plan to internalize engine maintenance operations starting in 2029. The airline intends to establish two engine maintenance, repair, and overhaul (MRO) facilities in Europe to support its expanding Boeing 737 fleet, which is expected to grow to around 800 aircraft. Currently, Ryanair operates 618 Boeing 737 aircraft across various generations, making it one of the largest single-type fleets globally. By sourcing spare parts directly from CFM rather than through third-party suppliers, Ryanair aims to exercise greater control over maintenance and material costs, a critical component of its low-cost business model.
Under the terms of the agreement, Ryanair commits to purchasing all engine spare parts exclusively from CFM, with annual expenditure on these parts anticipated to exceed $1 billion over the contract’s duration. Michael O’Leary, CEO of Ryanair, emphasized the significance of the partnership, noting the transition from the existing “power by the hour” maintenance contracts to an in-house maintenance model supported by CFM’s expertise. This move marks a pivotal development in Ryanair’s operational strategy as it prepares for future growth and enhanced cost efficiency.

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