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.
Both parties announced a memorandum of understanding (MOU) at the Saudi-French Investment Forum in Riyadh on Dec. 4. The MOU is comprised of maintenance cooperations and increased passenger connectivity between France, the Netherlands and Saudi Arabia, which could 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 powers its fleet of Boeing 777 aircraft. 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 and eventually be carried out in Saudi Arabia.
In the longer term, AFI KLM E&M will look at establishing a JV in Saudi Arabia for the GEnx, which powers 787 aircraft, with Saudia Technic, the maintenance division of the airline.
Saudia operates just more than 20 787 aircraft but has a large order pipeline for the widebody aircraft. In March 2023, it signed an order with Boeing for 39 787s with a further 10 as options.
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 CFM56-5 family, with 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.
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