This article is based on an official press release from Ryanair Corporate News and Safran Group.

Ryanair Announces Strategic Shift to In-House Engine Maintenance in Multi-Billion Dollar Deal with CFM

Ryanair has signed a Memorandum of Understanding (MoU) with CFM International, marking a significant structural change in how Europe’s largest airline manages its fleet operations. Announced on February 10, 2026, the agreement outlines a transition from a fully outsourced maintenance model to an in-house program covering approximately 2,000 engines.

According to the official announcement, the deal is a multi-year engine material services agreement. While CFM International, a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, will continue to provide maintenance services through 2029, Ryanair will subsequently take over these duties. Once the airline assumes full responsibility for maintenance, the purchase of spare parts and technical support is expected to generate over $1 billion annually for CFM.

Vertical Integration and New Facilities

The core of this agreement is Ryanair’s move toward vertical integration. Currently, the airline utilizes a “power-by-the-hour” contract where maintenance is outsourced. Under the new terms, Ryanair plans to construct two dedicated engine Maintenance, Repair, and Overhaul (MRO) shops in Europe to service its fleet of CFM56-7B and LEAP-1B engines.

The airline is currently evaluating five potential locations for these new facilities: Spain, Portugal, Italy, the Baltic states, and Northern Ireland. The operational timeline provided in the announcement targets the opening of the first facility by the end of 2028, with the second following in 2029. These facilities are projected to create significant employment opportunities, with approximately 600 highly skilled roles expected at each site.

In a statement regarding the strategic pivot, Ryanair Group CEO Michael O’Leary emphasized the operational benefits of the move:

“For the last 30 years, CFM has been maintaining all of Ryanair’s CFM56 engines under a long-term ‘power by the hour’ contract. However, from 2029 onwards, Ryanair expects to bring the maintenance of its engines ‘in-house’, and we are pleased to do so with the help and support of our partner CFM.”

Supporting Fleet Expansion

This agreement is designed to support Ryanair’s aggressive growth trajectory. The airline currently operates a fleet of over 600 aircraft, which is projected to grow to 800 by 2034. The maintenance agreement covers the entirety of this fleet, including the Boeing 737 Next-Generation (NG) and the Boeing 737 MAX “Gamechanger” aircraft.

Olivier Andriès, CEO of Safran, noted the scale of the partnership in the press release:

“Ryanair is our largest airline customer… We are committed to support the airline, supplying spares to help Ryanair service its engines.”

AirPro News Analysis

This move represents a classic maturation step for an ultra-low-cost carrier (ULCC) of Ryanair’s scale. By moving engine maintenance in-house, Ryanair reduces its exposure to external MRO slot constraints and third-party pricing fluctuations. While the upfront capital investment to build two MRO facilities is substantial, the long-term control over turnaround times and technical quality aligns with Ryanair’s obsession with operational efficiency and cost reduction. Furthermore, securing a direct supply line for parts with CFM ensures that despite “insourcing” the labor, the airline maintains a direct link to the OEM (Original Equipment Manufacturer) for critical components.

Sources

• Ryanair Corporate News