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StandardAero Signs LEAP Lease Agreement with Lessor Avolon

StandardAero and Avolon Forge Strategic LeaseTEAM Agreement for LEAP Engine Services
StandardAero, Inc. (NYSE: SARO), a prominent independent provider of aerospace engine aftermarket services, has formalized a LeaseTEAM agreement with Avolon, a leading global aircraft leasing company. This partnership will enable Avolon’s customers to access an extensive range of maintenance, repair, and overhaul (MRO) services for the CFM International LEAP-1A and LEAP-1B engine families.
Enhancing Maintenance Flexibility for Avolon’s Fleet
Avolon’s current fleet comprises approximately 150 Airbus A320neo aircraft powered by LEAP-1A engines and 54 Boeing 737 MAX aircraft equipped with LEAP-1B engines, reflecting its substantial footprint in the new-generation narrowbody market. The multi-year, non-exclusive LeaseTEAM agreement grants Avolon the ability to offer its airline customers priority induction bookings, allowing for advance reservation of engine maintenance slots to reduce aircraft downtime. Additionally, the agreement includes not-to-exceed pricing on specified LEAP maintenance events, designed to support Avolon’s maintenance needs while providing enhanced flexibility and cost predictability for its airline clients. This arrangement leverages Avolon’s scale and purchasing power to optimize service delivery.
Lewis Prebble, President of Commercial Engine Services at StandardAero, emphasized the company’s commitment to meeting the engine support requirements of Avolon’s A320neo and 737 MAX operators. He highlighted the global reach of the services, which will be available across North America, Latin America, Europe, the Middle East, Africa, South Asia, and the Asia-Pacific region.
Will Pitcher, Head of Powerplant Strategy & Asset Solutions at Avolon, noted the importance of proactive maintenance planning for new technology engines such as the CFM LEAP. He described the agreement as a strategic safeguard for Avolon and an additional option for its customers, underscoring the benefits of priority induction slots, capped pricing, and access to spare engine capacity as mutually advantageous features.
Market Context and Competitive Dynamics
This agreement emerges amid intensifying competition within the aircraft leasing and engine services sectors. Avolon is actively expanding its market presence, recently acquiring 11 A321neos from Frontier Airlines, a move expected to strengthen its fleet and customer offerings. Concurrently, rival lessor AerCap has launched a joint venture with Air France-KLM Engineering & Maintenance focused on LEAP engine leasing, signaling heightened rivalry in this space.
These developments may compel StandardAero to further refine and expand its service portfolio to sustain its competitive position, particularly as Avolon’s fleet grows and AerCap enhances its engine leasing capabilities. Aircraft leasing companies like Avolon now control approximately half of the global commercial aircraft fleet, underscoring the strategic significance of such partnerships in the aviation industry.
StandardAero operates its LEAP-1A and LEAP-1B engine support services from an 810,000-square-foot facility in San Antonio, serving a worldwide customer base as an authorized CFM LEAP service provider.

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