AerCap, AFI KLM E&M to form joint venture

AerCap Holdings (AER) and Air France Industries KLM Engineering & Maintenance have announced that they have entered into exclusive negotiations to form a LEAP engine leasing joint venture to support AFI KLM E&M LEAP Premier MRO customers worldwide. Building on their existing cooperation around lease engines, AerCap and AFI KLM E&M intend to jointly own and manage a fleet of CFMI LEAP-1A and LEAP-1B engines enabling uninterrupted Airbus (EADSY) A320neo and Boeing (BA) 737 MAX fleet operations, while engines are going for a quick-turn or performance restoration shop visit within the AFI KLM E&M MRO network. The formation of this joint venture, which is subject to any necessary approval, 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. Furthermore, the joint venture will benefit LEAP engine operators by offering the combined experience of a global airline-MRO that operates and maintains ‘new gen’ aircraft and engines with that of a world-class aircraft and engine lessor.