Safran Aircraft Engines has recruited ST Engineering to ensure it can keep up with CFM56 maintenance demand as narrowbody operations return to full strength in some parts of the world.
Under the multi-year deal, ST Engineering’s facilities in Singapore and Xiamen, China, will provide shop visit offload for CFM56-5B and -7B engines, which power current-generation Boeing 737s and Airbus A320s.
The two facilities can turn around 450 engines per year, while the Singapore facility this year added quick turn services for the CFM LEAP-1B, which powers the 737 MAX.
“With flying activities picking up strongly, we look forward to leveraging our engine MRO expertise and facilities in Asia to support CFM customers and the recovery in global air travel,” said Tay Eng Guan, vice president of engine services at ST Engineering.
In a February earnings call, Safran chief executive officer Olivier Andries said that the company was expecting a “catch-up” in engine workscopes following minimal work during the pandemic, although he added that this probably wouldn’t occur this year.
According to the 2022 Aviation Week Network Fleet & MRO Forecast, CFM56-5B MRO demand will rise from $3.9 billion this year to a peak of $5 billion in 2024.
The larger -7B market, meanwhile, will peak a year later at $7.9 billion, rising from $6 billion this year.
Speaking to investors in late 2021, Safran said that the focus of its aftermarket business would evolve from time-and-materials contracts for the CFM56 to rate-per-flight-hour deals for the LEAP engine.
This reflects the fact that more customers for new-generation narrowbodies are signing up to OEM maintenance deals upon choosing an engine, both with CFM and rival Pratt & Whitney.
Safran also forecast that its aftermarket revenue from civil engines would grow at a compound annual rate of 15% between 2021 and 2025.
It predicted that spare parts demand for the CFM56 would return to 2019 levels around 2024, to then plateau from 2025-28.
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