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IndiGo and CFM sign major jet engine repair shop deal

IndiGo, India’s largest airline, has signed a preliminary deal with?CFM International to purchase over 1,000 LEAP-1A engine. This is a record order for this French-U.S. engine maker, which is currently battling a repair backlog.

The Memorandum of Understanding at the Farnborough Airshow will provide engines for the same airline’s massive order to purchase 500 Airbus A320neo family aircraft by 2023, at the Paris Airshow. Paris alternates with Farnborough each year as the industry’s annual showcase.

This deal includes plans to have the airline open a maintenance, repair, and overhaul center as well as an agreement for parts.

CFM is the largest engine manufacturer in the world by the number of engines sold. It makes engines for the Airbus A320neo and competes with Pratt & Whitney. It is co-owned by GE Aerospace, France's Safran and CFM.

Long maintenance 'waiting' times and shortages in spare parts have caused the engine industry to be?disrupted for many years. This has forced airlines to temporarily keep their planes idle.

CFM announced at the weekend that it has reduced the number planes grounded due to LEAP engines related issues to "near zero".

Pratt & Whitney has also seen improvements. The rival company, which was the main cause of groundings, due to a?shortage of maintenance capacity, and metal contamination problems, has reported similar results.

Sources in the industry said that two of the largest budget airlines in the world decided to build repair shops partly to protect themselves from a'scarce capacity for repair.

Both airlines will only use their own engines and not outsource their internal resources to others.

Even though engine manufacturers are gradually easing the delays, a sharp increase?in planes being constructed means that access to repairs will become a strategic issue for airlines in the future.

Boeing warned last week that a lack of skilled?technicians, repair times and supply chain problems would put engine services under strain for the rest of this decade.

The U.S. aircraft manufacturer predicted that the total annual MRO market would grow by 88% to $215 billion in 2045. (Editing by Tomasz Janowski and Deepa Babington).

(source: Reuters)