Ryanair Inks Multi-Billion Dollar Engine Parts Deal With CFM, Plans In-House MRO Push
Paris, France — Europe’s largest low-cost carrier Ryanair and engine manufacturer CFM International have formalized a sweeping 15-year spare parts agreement valued in the multi-billion dollar range, a move that underpins the Irish airline’s ambitious plan to bring engine maintenance fully in-house by the end of the decade.
The memorandum of understanding, signed at a briefing in the French capital on Tuesday, guarantees Ryanair a steady flow of engine components from CFM — the 50/50 joint venture between France’s Safran Aircraft Engines and U.S.-based GE Aerospace. Under the terms, Ryanair commits to sourcing all engine spare parts exclusively from CFM, foregoing independent third-party suppliers entirely.
Ryanair CEO Michael O’Leary, sporting a French rugby shirt in a nod to Les Bleus’ recent Six Nations victory over Ireland at the Stade de France, told reporters the deal was a necessary step as the airline gears up for massive fleet growth. “Beware the French bearing gifts; this is going to cost me,” O’Leary quipped as he put pen to paper.
The contract is expected to exceed $1 billion annually once Ryanair assumes full responsibility for overhauling its own powerplants, according to the airline. That transition hinges on the opening of two dedicated engine maintenance, repair and overhaul shops — the first targeted for 2028 or 2029, with a second facility likely following within a year.
A Fleet Approaching 2,000 Engines
The timing isn’t accidental. Ryanair’s operating fleet stood at roughly 643 aircraft at the close of 2025, comprising Boeing 737-800s fitted with CFM56-7B engines and the newer 737 MAX 8-200s powered by LEAP-1B turbofans. The carrier expects to receive its final MAX 8-200 deliveries this month, with the first of 300 737 MAX 10 aircraft slated to arrive in spring 2027. By 2034, O’Leary projects an operating fleet approaching 800 airframes — translating to close to 2,000 CFM engines requiring regular shop visits.
For the past three decades, CFM has handled all of Ryanair’s engine maintenance under a long-term “power by the hour” arrangement. But persistent supply chain bottlenecks, a post-pandemic surge in demand for MRO capacity, and the sheer scale of Ryanair’s future engine needs have prompted the airline to take a more hands-on approach.
Site Selection Underway
Ryanair is currently evaluating roughly five potential locations for the new facilities, with Spain, Portugal, Italy, the Baltic states, and Northern Ireland all in the running. O’Leary indicated that both shops are more likely to end up on the European mainland, citing logistical complications with transporting engines and the fact that most of the fleet operates from continental bases. A shortlist is expected by June.
Each facility would employ approximately 500 to 600 workers and could handle up to 200 engine overhauls per year, providing sufficient maintenance capacity for the next 15 years. Construction on the first site could begin as early as 2026. O’Leary has previously noted that the cost per engine overhaul runs around $11 million — a figure that makes the economics of in-house maintenance increasingly attractive given the current scarcity of available shop slots globally.
The airline hasn’t historically believed self-maintenance was viable, but a tight aftermarket has changed the calculus. An IATA study released in late 2025 estimated that supply chain constraints added roughly $5.7 billion in additional engine leasing and maintenance costs across the industry that year alone. Engines are spending longer on the ground during overhauls, forcing carriers to lease replacements at rates 20 to 30 percent higher than pre-pandemic levels.
CFM Welcomes the Shift
Safran CEO Olivier Andriès acknowledged at the Paris briefing that the LEAP production ramp-up is tracking at roughly twice the pace of the earlier CFM56 program, but conceded the manufacturer has yet to reach its investment return phase on the newer engine line. He described Ryanair as CFM’s largest airline customer and said the manufacturer remains committed to supporting the carrier’s maintenance ambitions.
“We welcome maintenance investments by airlines which will give them control of scheduling and turnaround times, given the lack of capacity,” Andriès said. He added that third-party MRO providers are expected to account for half of all engine maintenance globally by 2040, a trend CFM is actively encouraging through what it calls an “open and competitive” aftermarket ecosystem.
The deal also comes just weeks after IATA and CFM renewed a pro-competitive agreement through Feb. 2033 designed to keep engine maintenance markets accessible to independent shops — a signal that the aftermarket landscape is shifting as airlines and lessors alike push for alternatives to constrained OEM supply chains.
Broader MRO Expansion
The engine shop plans fit into a wider maintenance infrastructure buildout at Ryanair. The carrier recently completed work on an MRO hangar in Sevilla, Spain, and has started construction on a new facility at Dublin International. Expansion projects are also underway at Kaunas, Kraków, and Wrocław. The airline already operates heavy maintenance bases at Glasgow Prestwick, Frankfurt Hahn, and Shannon.
Ryanair has additionally established an engineering academy in Glasgow to train the technical workforce it’ll need to sustain an 800-aircraft fleet. It’s a recognition that skilled labor availability — not just capital — will determine how quickly the airline can scale its in-house capabilities.
Whether Ryanair’s bet on vertical integration in engine maintenance pays off will depend on execution, labor markets, and whether the broader aerospace supply chain can stabilize in the years ahead. But for an airline that’s built its identity on cost control and operational self-reliance, the logic is hard to argue with.
Photo Credit: Lucas Davies
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