This article is based on an official press release from Delta Air Lines and supplementary industry data.

Delta TechOps Signs First Third-Party LEAP-1B Maintenance Deal with Korean Air

Delta TechOps has officially secured its first third-party maintenance contract for the CFM LEAP-1B engine, partnering with long-time collaborator Korean Air. The agreement marks a significant milestone for the Atlanta-based maintenance, repair, and overhaul (MRO) provider as it solidifies its position in the next-generation engine market.

According to the announcement, the contract covers the maintenance, repair, and overhaul of LEAP-1B engines powering Korean Air’s growing fleet of Boeing 737 MAX aircraft. The work will be conducted at Delta TechOps’ facility in Atlanta, Georgia, which recently inaugurated a dedicated shop specifically for next-generation engine lines.

Strategic Milestone: The “Premier MRO” Designation

This agreement is particularly notable because it cements Delta TechOps’ status as a “Premier MRO” provider for LEAP engines. This designation, introduced by CFM International, identifies a select group of maintenance providers authorized to offer the highest level of support.

Delta TechOps is the first provider in North America to hold this elite status. As a Premier MRO shop, the facility gains direct access to CFM’s proprietary repair technology, technical data, and training standards. This ensures that all repairs meet the original equipment manufacturer (OEM) specifications, a critical factor for airlines looking to preserve the residual value of their assets.

Executive Commentary

Leadership from both organizations emphasized the importance of this partnership in maintaining operational reliability for next-generation fleets.

“Next-generation engines demand next-generation support… Our LEAP-1B capability is powered by the expertise of the best people in the industry.”

— John Laughter, President of Delta TechOps

Jongseok Yoo, Executive Vice President of Korean Air, noted that the agreement reflects a mutual focus on achieving high standards of operational assurance. The deal builds on a history of cooperation between the two carriers; Delta TechOps previously serviced CF6 engines for Asiana Airlines, which is currently being integrated into Korean Air.

Scope of Work and Fleet Context

The LEAP-1B engine is the exclusive powerplant for the Boeing 737 MAX family. Under the new contract, Delta TechOps will provide exclusive maintenance support, including full overhaul, repair, and on-wing services for Korean Air’s fleet.

While Korean Air currently operates a smaller initial fleet of Boeing 737 MAX 8 aircraft, the airline has a substantial order book. Industry data indicates the carrier has firm orders for 30 MAX aircraft and has expressed intent to purchase an additional 50 Boeing 737 MAX 10s. This suggests the volume of work under this contract could expand significantly over the coming decade as these aircraft enter service.

AirPro News Analysis: Addressing the Global Capacity Crunch

This contract arrives at a critical juncture for the global aviation industry. Airlines are currently facing a severe “capacity crunch” regarding engine maintenance. MRO shops worldwide are contending with backlogs caused by supply chain shortages, deferred maintenance from the pandemic era, and teething issues associated with new-generation engines.

By opening its LEAP-1B lines to third-party customers, Delta TechOps is positioning itself as a vital release valve for this industry-wide pressure. The move aligns with the division’s broader strategy to grow its third-party revenue to over $1 billion annually. Securing high-value contracts for the LEAP-1B, an engine that dominates the single-aisle market alongside the Airbus A320neo’s engine options, is essential to achieving that financial target.

The timeline of this development highlights Delta’s aggressive expansion in the MRO sector:

• July 2022: Delta TechOps signs the initial Branded Service Agreement (CBSA) with CFM International.
• 2024: The dedicated LEAP-1B engine shop opens in Atlanta.
• Late 2025: Delta TechOps announces this inaugural third-party contract with Korean Air.

We expect this deal to serve as a proof-of-concept for other carriers operating the 737 MAX in North America and Asia, potentially leading to further third-party contracts for Delta’s Atlanta facility.

Sources

Delta Air Lines