AFI KLM E&M, Saudia Technic Explore Potential GEnx MRO Joint Venture
Air France KLM Engineering & Maintenance (AFI KLM E&M) and the MRO unit of flag carrier Saudia will explore setting up a GE Aerospace GEnx engine maintenance joint venture (JV) after the French-Dutch company signed terms for a large volume of MRO work from the Saudi Arabian airline.
Air France KLM Engineering & Maintenance (AFI KLM E&M) and the MRO unit of flag carrier Saudia will explore setting up a GE Aerospace GEnx engine maintenance joint venture (JV) after the French-Dutch company signed terms for a large volume of MRO work from the Saudi Arabian airline.
Air France-KLM and Saudia announced a memorandum of understanding (MOU) at the Saudi-French Investment Forum in Riyadh on Dec. 4. In addition to maintenance cooperation, the pact also covers increasing passenger connectivity between France, the Netherlands and Saudi Arabia, which should ultimately lead to more travel options between the locations.
The MRO part of the MOU will see AFI KLM E&M awarded a minimum of 50% of the MRO work related to Saudia’s GE Aerospace-manufactured GE90 engines, which power the carrier's fleet of Boeing 777s. The airline currently has 39 of the widebody in operation, mostly comprised of the -300ER variant.
Also included in the MRO pipeline is the module assembly and disassembly of the engines, which will undergo a localization process so that it can eventually be carried out in Saudi Arabia.
Looking longer term, AFI KLM E&M and Saudia Technic, the maintenance division of the airline, will explore establishing a JV in Saudi Arabia for the GEnx, which powers the 787.
Saudia operates just over 20 787s but has a large order pipeline for the widebody aircraft. In March 2023, it signed an order with Boeing for 39 787s and options for 10 more.
The agreement is intended to expand and localize Saudia Technic’s MRO capabilities, particularly in engine repairs, where it is looking to grow capabilities at its shop in Jeddah. At present, the company’s engine MRO programs include services for the CFM56-5 family. Saudia Technic plans to develop more engine and component capabilities in the near future after identifying an opportunity to capture more third-party work from Saudi Arabia’s growing commercial fleet.
The MRO provider, which rebranded from Saudia Aerospace Engineering Industries in 2023, has capabilities for line, base, components and engine maintenance, but new capability additions are likely to be a common theme over the next five years.
Saudi Arabia’s Public Investment Fund confirmed its investment in the MRO provider in late 2023 and plans to build a designated “MRO Village” at King Abdulaziz International Airport in Jeddah.
Construction on the 10.7 million-ft.2 site commenced in 2023.
