MRO & Manufacturing
IAG and CFM International Agree on LEAP Premier MRO in Madrid
IAG and CFM International designate Iberia Maintenance as LEAP Premier MRO provider at La Muñoza, Madrid, starting LEAP engine maintenance in 2027.

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
Photo Credit: CFM International
MRO & Manufacturing
Avincis Orders Five McDermott 214ST Helicopters for Europe
Avincis signs for five McDermott 214ST helicopters after a 90% surge in European wildfire firefighting flight hours in 2026.

European aerial emergency services operator Avincis has signed a Letter of Intention to acquire five McDermott 214ST medium-lift helicopters from Australian operator and manufacturer McDermott Aviation. The agreement, announced on September 10, 2026, in Lisbon, Portugal, follows a severe escalation in European wildfire activity that has nearly doubled the operator’s firefighting flight hours compared to the previous year.
According to a press release issued by Avincis, the new aircraft will be deployed across the company’s primary operating regions, which include Spain, Portugal, and Italy. The acquisition is designed to expand rotary-wing capacity for both aerial firefighting and utility missions as climate conditions place unprecedented strain on existing emergency response infrastructure.
Surging aerial firefighting requirements
Avincis reported a dramatic increase in operational tempo during the 2026 European wildfire season. By August 31, 2026, the operator had completed 12,600 firefighting flight hours. This represents an almost 90% increase over the same period in 2025.
During these operations, Avincis crews executed 5,400 firefighting missions and dropped 225 million litres of water across its European network.
Avincis Group CEO John Boag stated that investing in versatile medium-lift aircraft is essential to support customers as demand for aerial firefighting and utility operations grows.
“We are not simply adding aircraft. We are giving our customers and the emergency services directing operations on the ground more options when conditions escalate,” Boag said in the company statement.
Reviving the 214ST platform
The McDermott 214ST is a modernized iteration of the former Bell 214ST. McDermott Aviation, currently the largest civil operator of the type and owner of its type certificate, announced plans in March 2026 to restart production of the helicopter under its own name. According to reporting by Aviation Week, McDermott plans to deliver refurbished models beginning in 2027, followed by new-build models equipped with Safran Aneto engines in the 2028 to 2029 timeframe.
The twin-turbine helicopter, powered by GE CT7-2A engines in its current configuration, offers performance characteristics suited for demanding aerial firefighting profiles. Avincis highlighted the following specifications for the McDermott 214ST:
- Useful load: 3,000 kg
- Maximum external hook load: 3,582 kg
- Maximum endurance: 4.1 hours
- Cruise speed: 120 knots
McDermott Aviation Founder and President John McDermott noted that the company has long believed in the platform’s capabilities, calling the five-aircraft agreement a significant step forward for the production program.
Boag added that the aircraft’s lift, endurance, and hot-and-high performance will strengthen the company’s rotary-wing response. He also noted that the platform’s utility capabilities will allow for deployment across a wider range of critical missions year-round.
AirPro News analysis
We view Avincis’ commitment to the McDermott 214ST as a practical response to the structural changes in European wildfire seasons. The nearly 90% year-over-year increase in flight hours indicates that existing light and intermediate rotary-wing fleets are facing severe utilization strain. By securing five medium-lift platforms with a 3,582 kg external hook capacity, Avincis is prioritizing volume and endurance over sheer fleet numbers. For McDermott Aviation, securing a major European operator as a launch customer for the revived 214ST program provides crucial market validation for its transition from operator to original equipment manufacturer.
Sources: Avincis
Photo Credit: Avincis
MRO & Manufacturing
IER MRO Industries Breaks Ground on $1B Dubai Engine Facility
IER MRO Industries begins construction on a $1B AI-integrated engine MRO facility in Dubai, targeting CFM56 and LEAP platforms.

IER MRO Industries has initiated construction on a $1 billion, artificial intelligence-integrated engine maintenance facility in Dubai, appointing Group AMANA as the general contractor for the project’s first operational phase.
Announced in a company press release on September 14, 2026, the 1.4 million-square-foot development at the Mohammed Bin Rashid Aerospace Hub (MBRAH) is designed to introduce highly automated narrowbody engine maintenance, repair, and overhaul (MRO) capabilities. The facility will be located adjacent to Al Maktoum International Airport.
Facility capabilities and engine programs
The first building in the complex, designated MRO4, is scheduled to open in late 2026, according to reporting by Aviation Week. The facility will initially focus on servicing CFM International CFM56-7B, LEAP-1A, and LEAP-1B engines. Aviation Week also noted that IER MRO plans to eventually add repair capabilities for the International Aero Engines V2500 and is evaluating long-term expansion to support the GE Aerospace GEnx widebody engine.
At full scale, the company stated the facility will accommodate up to 550 engine shop visits or approximately 2,000 major engine module overhauls annually. Heavier workscopes outside of standard hospital visits are projected to begin in 2034.
Technological integration and testing
IER MRO Industries is designing the site around digital infrastructure, utilizing digital twin technology and an integrated data environment to connect assets and material flows. The company plans to deploy advanced robotic systems for logistics and technician assistance, aiming to reduce engine and module turnaround times.
ME Construction News reported remarks from Lawrence J. Howie, Chairman and CEO of IER MRO Industries, regarding the project’s scope.
“The appointment of Group AMANA is an important step in moving our vision into physical execution. We are building much more than a conventional engine maintenance facility – our objective is to create a next-generation, highly automated and AI-native MRO operation in Dubai, with major engine, module, test-cell and training capabilities.”
A twin-engine test cell facility is scheduled to open in 2027. The company reported this test cell will be capable of conducting more than 1,000 engine tests per year and can accommodate engines producing up to 100,000 pounds of thrust.
Investment and workforce development
The total estimated investment in the project has grown to $1 billion, an increase from an initial estimate of $800 million, according to Aviation Week. The publication also reported that IER MRO plans to employ between 400 and 450 people at the site.
To support this workforce, the development will include a dedicated aviation training academy focused on local engineers and technicians. Training for the new venture is already underway at the company’s existing facilities. Construction works are being administered by the Bureau of Engineering Studies Consulting Engineers (BEST), acting as the appointed engineer and consultant.
AirPro News analysis
We view the scale of the IER MRO facility as a direct response to the persistent global shortage of narrowbody engine maintenance capacity. By targeting the CFM International LEAP and CFM56 platforms, the company is positioning itself to capture demand from the most widely utilized commercial aircraft families. The heavy emphasis on automation and digital twin technology suggests an industry-wide shift toward mitigating skilled labor shortages through advanced manufacturing techniques, which will be critical to achieving the facility’s ambitious turnaround time targets.
Sources: IER MRO Industries, IER MRO
Photo Credit: IER MRO
MRO & Manufacturing
Altitude Engineering Wins Xiamen Airlines 787 MRO Contract at LHR
Altitude Engineering secures long-term Boeing 787 line maintenance contract with Xiamen Airlines at London Heathrow from September 2026.

Dublin-based independent maintenance provider Altitude Engineering has secured a long-term contract to provide scheduled line maintenance for Xiamen Airlines (MF) Boeing 787 Dreamliner operations at London Heathrow Airport (LHR).
The agreement commenced in September 2026 to support the Chinese carrier as it launches a new direct route connecting London and Xiamen. The contract was announced in a company press release issued by Altitude Engineering.
Scope of the maintenance agreement
Under the terms of the contract, Altitude Engineering will perform routine line maintenance checks and defect rectification for the Xiamen Air widebody fleet at LHR. The dedicated technical support is designed to maintain dispatch reliability for the long-haul operation.
Altitude Engineering Head of Commercial James Keable noted the company is focused on delivering top-tier support to ensure smooth operations for the new route, highlighting the strategic value of the contract for the Dublin-based firm.
Welcoming Xiamen Air to our operation is a fantastic milestone for us. This partnership allows us to further strengthen our exposure to airlines in the region while successfully adding to our customer portfolio at Heathrow, which continues to grow year on year at a steady, sustainable rate.
Strategic expansion at London Heathrow
The contract represents a notable expansion for Altitude Engineering at one of Europe’s busiest international hubs. Securing a widebody operator like Xiamen Air bolsters the maintenance provider’s portfolio of international clients requiring dedicated technical support on the ground.
The aviation sector connecting Europe and Asia is currently navigating complex geopolitical challenges, including airspace restrictions over Russia. These logistical hurdles have prompted airlines to seek highly reliable operational and technical support at major international hubs to mitigate potential disruptions, according to industry reporting from AviTrader.
AirPro News analysis
We view this agreement as a strategic win for Altitude Engineering in the highly competitive European line maintenance market. Independent maintenance, repair, and overhaul (MRO) providers at slot-constrained hubs like LHR must demonstrate high dispatch reliability to win widebody contracts from major international carriers. For Xiamen Air, partnering with an established local provider reduces the operational risk associated with launching a long-haul route in a complex airspace environment.
Sources: Altitude Engineering
Photo Credit: Altitude Engineering
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