This article is based on an official press release from CFM International.

IAG and CFM International Forge Strategic LEAP Premier MRO Agreement in Madrid

On April 20, 2026, International Airlines Group (IAG) and CFM International officially announced a new licensing agreement that designates Iberia Maintenance as a CFM LEAP Premier MRO (Maintenance, Repair, and Overhaul) provider. The comprehensive agreement covers both the LEAP-1A and LEAP-1B engines, which currently power the majority of the Airbus A320neo family and all Boeing 737 MAX aircraft.

According to the official press release, Iberia’s engine shop in La Muñoza, located near Madrid-Barajas Airport, will serve as a strategic European hub for this expanding MRO activity. The facility, which boasts more than 50 years of operational experience, is scheduled to induct its first LEAP engines in the first quarter of 2027.

We understand from supplementary industry research that this move is designed to capture third-party revenue in a rapidly growing aftermarket, while simultaneously allowing CFM to expand its global maintenance capacity ahead of a forecasted surge in engine shop visits over the coming decade.

Expanding the Global MRO Ecosystem

The Role of La Muñoza and IAG Engine Tech

The agreement integrates IAG into CFM’s open MRO ecosystem, a structure that allows Premier MRO licensees to compete directly with CFM’s own shops and other third-party providers. The press release notes that this open ecosystem is designed to foster competition, helping airline operators optimize maintenance costs, secure faster turnaround times, and maintain higher residual values for their engines.

To oversee this expanding business sector, supplementary research indicates that IAG has launched a new entity named “IAG Engine Tech,” which will base its operations at the La Muñoza facility. While the shop is initially positioned to support European operators and IAG’s own fleets, its capabilities will progressively expand to service airlines worldwide.

“Becoming a CFM LEAP Premier MRO provider places IAG and Iberia in a strategic position to develop a business with strong growth and profitability potential,” stated Marco Sansavini, CEO of Iberia, in the press release.

Strategic Context: Flight Plan 2030 and Fleet Renewal

Iberia’s Long-Term Vision

This MRO agreement serves as a cornerstone of Iberia’s broader strategic roadmap, known as “Flight Plan 2030.” According to industry research, the plan, unveiled in June 2025, outlines a €6 billion investment aimed at transforming the airline and targeting an annual profitability margin of 13.5% to 15%. A key component of this roadmap is the development of “Ciudad Iberia” at La Muñoza, which will transform the area into a cutting-edge aeronautical innovation center.

The partnership builds on a long-standing relationship between IAG, Iberia, and CFM. The press release highlights that the companies have collaborated on overhauling legacy CFM56 engines since 1992. Furthermore, Iberia served as the global launch operator for the Airbus A321XLR in October 2024, a narrowbody aircraft exclusively powered by CFM LEAP-1A engines in Iberia’s fleet.

“We’re forecasting CFM LEAP shop visits to increase significantly by the end of this decade as the fleet continues to expand,” noted Gaël Méheust, president and CEO of CFM International, in the company’s statement.

Meeting Surging Industry Demand

The LEAP Engine Backlog

The aviation industry is currently navigating a severe shortage of engine maintenance capacity. According to the CFM press release, LEAP engines currently power more than 4,600 aircraft globally. Supplementary industry estimates reveal an immense backlog of over 8,600 to 10,000 engines on orders.

As the in-service fleet ages, the demand for maintenance is expected to rise sharply. Industry research projects that LEAP engine shop visits will quadruple from approximately 500 in 2025 to roughly 2,000 per year by 2030. Furthermore, the global civil aircraft MRO market is projected to reach a valuation of US$ 124.4 billion by 2034, underscoring the lucrative nature of this sector.

AirPro News analysis

At AirPro News, we view this agreement as a critical strategic pivot for both IAG and CFM International. For IAG, the creation of “IAG Engine Tech” and the acquisition of Premier MRO status effectively transitions Iberia’s maintenance arm from an internal cost center into a major profit driver. By opening its doors to third-party airlines globally, IAG is positioning itself to capitalize on the massive backlog in global engine maintenance, thereby diversifying its revenue streams beyond traditional passenger ticket sales.

For CFM International, partnering with a major airline group like IAG is a pragmatic approach to rapidly scaling its global maintenance footprint. This strategy allows CFM to increase capacity without bearing the sole capital expenditure of building new facilities from the ground up. Ultimately, the addition of a major European hub for LEAP engine maintenance should help alleviate the current strain on the global MRO supply chain, offering airlines more competitive pricing and potentially faster turnaround times for critical engine overhauls.

Frequently Asked Questions (FAQ)

• What is a CFM Premier MRO license?
  According to CFM International, a Premier MRO license grants providers the highest level of training, support, and access to proprietary overhaul and repair technology for LEAP engines, allowing them to compete within CFM’s open MRO ecosystem.
• When will the La Muñoza facility begin LEAP maintenance?
  The official press release states that initial LEAP engine inductions are planned for the first quarter of 2027.
• Which engines are covered under this agreement?
  The agreement covers both the LEAP-1A (which powers the Airbus A320neo family) and the LEAP-1B (which powers the Boeing 737 MAX family).

Sources

• CFM International Press Release