StandardAero Signs 15-Year CFM LEAP Support Agreement with Major Middle East Airline; Engine Inductions Already Underway

Rhea-AI Summary

StandardAero (NYSE: SARO) has secured a significant 15-year agreement with a major Middle East airline for CFM LEAP engine maintenance services. The company's San Antonio facility will provide comprehensive engine and component repair services for LEAP-1A (Airbus A320neo) and LEAP-1B (Boeing 737 MAX) engines.

The 810,000 sq. ft. San Antonio facility began accepting light workscope LEAP shop visits in March 2024 and inducted its first Performance Restoration Shop Visit (PRSV) in late 2024. StandardAero has already industrialized over 260 component repairs for LEAP engines through its Component Repair Services network.

This agreement follows StandardAero becoming the first non-airline CFM Branded Service Agreement holder in the Americas for LEAP-1A and LEAP-1B in March 2023. The company now serves operators across multiple continents through its Total Engine Asset Management services portfolio.

Positive

• Secured 15-year long-term service agreement with major airline
• Expanding service capability for next-generation aircraft engines
• Successfully industrialized 260+ component repairs for LEAP engines
• Operating from large 810,000 sq. ft. facility in San Antonio

Negative

• None.

Insights

Aerospace Industry Analyst

This landmark 15-year agreement marks a strategic breakthrough for StandardAero in the highly lucrative LEAP engine MRO market. The LEAP engine, powering both the A320neo and Boeing 737 MAX, represents one of the largest commercial aviation programs, with over 15,000 engines in service or on order.

The deal's significance stems from several key factors: First, StandardAero has demonstrated remarkable speed-to-market, achieving full MRO capabilities within just one year of obtaining their Premier provider status. Second, the company's investment in a comprehensive 260+ component repair portfolio creates a competitive advantage through vertical integration, potentially leading to better cost control and faster turnaround times.

The Middle East market is particularly strategic, as carriers in the region operate some of the world's largest narrowbody fleets and have substantial outstanding orders. This agreement could serve as a reference point for capturing additional market share in a region known for its premium service requirements and substantial maintenance budgets.

StandardAero's comprehensive TEAM™ services portfolio, combining maintenance, asset management and engineering solutions, positions the company to capture a larger share of the estimated $8-10 billion annual LEAP MRO market by 2030. The in-house Aviation Mechanic Training Program further strengthens their competitive position by addressing the industry-wide technician shortage.

For investors, this agreement represents a significant revenue visibility boost, with 15 years of guaranteed work from a major carrier. The timing is particularly advantageous as the first wave of LEAP engines begins entering their maintenance cycle, creating substantial growth opportunities in the coming years.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- StandardAero, a leading independent provider of engine maintenance, repair and overhaul (MRO) services, has signed a definitive 15-year agreement with a major Middle East airline to provide aftermarket services for the CFM International LEAP turbofan engine. Under the new agreement, StandardAero’s LEAP MRO facility in San Antonio, TX, will provide engine and engine component repair and overhaul, including LEAP performance restoration shop visits (PRSV) and continued time engine maintenance (CTEM) services in support of the airline’s fleet of new-generation narrowbody aircraft.

StandardAero Signs 15-Year CFM LEAP Support Agreement with Major Middle East Airline; Engine Inductions Already Underway (Photo: Business Wire)

StandardAero supports the LEAP-1A (Airbus A320neo) and LEAP-1B (Boeing 737 MAX) as a CFM LEAP Premier MRO provider, having signed the first non-airline CFM Branded Service Agreement (CBSA) in the Americas for the LEAP-1A and LEAP-1B in March 2023. The 810,000 sq. ft. San Antonio facility initially began accepting light workscope LEAP shop visits in March 2024 and inducted its first PRSV workscope in the second half of 2024, after completing test cell correlation for both engine variants.

StandardAero now provides LEAP-1A and LEAP-1B services to a range of airline operators and asset managers across North America, Latin America, Europe, the Middle East, South Asia and Asia Pacific. These services – which include engine repair and overhaul, component repair, workscoping/forecasting, engine testing, program management, lease engine support and module swaps – are offered in a seamless fashion under StandardAero’s Total Engine Asset Management (TEAM™) services portfolio.

Commenting on the announcement for StandardAero, Will Pitcher, Senior Vice President of Sales, Marketing and Customers, said: “This latest LEAP engine support agreement highlights the maturity of StandardAero’s San Antonio Premier MRO facility, our team there having performed exceptionally in industrializing a full scope of LEAP capabilities ahead of schedule since joining the LEAP MRO ecosystem in March 2023. We look forward to continuing to grow our LEAP customer base throughout 2025, as more and more A320neo and 737 MAX operators turn to StandardAero for reliable engine support.”

In addition to establishing MRO capability for the LEAP-1A and LEAP-1B at its San Antonio facility, StandardAero also continues to industrialize new engine component repairs for the LEAP family through its Component Repair Services (CRS) segment’s network of locations, and its Repair Development Center of Excellence. To date, StandardAero’s CRS team has industrialized more than 260 component repairs for the LEAP-1A and LEAP-1B.

StandardAero also continues to grow its team of LEAP technicians through its in-house Aviation Mechanic Training Program, located at its San Antonio site’s Training Academy.

CFM International, the 50/50 joint company between GE Aerospace and Safran Aircraft Engines founded in 1974, has redefined international cooperation and helped change the course of commercial aviation. Today, CFM is the world's leading supplier of commercial aircraft engines with a product line that sets the industry standard for efficiency, reliability, durability, and optimized cost of ownership for narrowbody aircraft. The company produces the LEAP family of engines, and supports both LEAP and CFM56 fleets for more than 600 operators worldwide.

StandardAero is a leading independent pure-play provider of aerospace engine aftermarket services for fixed- and rotary-wing aircraft, serving the commercial, military and business aviation end markets. StandardAero provides a comprehensive suite of critical, value-added aftermarket solutions, including engine maintenance, repair and overhaul, engine component repair, on-wing and field service support, asset management and engineering solutions. StandardAero is an NYSE listed company under the ticker symbol SARO. For more information about StandardAero, go to www.standardaero.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206922274/en/

Investors:

investors@StandardAero.com

(480) 377-3142



Alex Trapp

Alex.Trapp@StandardAero.com



Media:

Kyle Hultquist

Kyle.Hultquist@StandardAero.com

Source: StandardAero, Inc.

FAQ

What is the duration and scope of StandardAero's (SARO) new Middle East airline agreement?

StandardAero signed a 15-year agreement to provide aftermarket services for CFM LEAP engines, including engine and component repair and overhaul services, PRSV and CTEM services.

When did StandardAero (SARO) begin LEAP engine services at its San Antonio facility?

StandardAero's San Antonio facility began accepting light workscope LEAP shop visits in March 2024 and inducted its first PRSV workscope in the second half of 2024.

How many component repairs has StandardAero (SARO) developed for LEAP engines?

StandardAero has industrialized more than 260 component repairs for the LEAP-1A and LEAP-1B engines through its Component Repair Services network.

Which aircraft types will StandardAero (SARO) service under the new agreement?

StandardAero will service LEAP-1A engines used in Airbus A320neo aircraft and LEAP-1B engines used in Boeing 737 MAX aircraft.

What regions does StandardAero (SARO) currently serve for LEAP engine services?

StandardAero provides LEAP engine services to operators across North America, Latin America, Europe, the Middle East, South Asia and Asia Pacific.