en.Wedoany.com Reported - Dimension News, India's largest airline IndiGo signed a memorandum of understanding with CFM International on Monday to order over 1,000 LEAP-1A engines for its previously ordered 500 Airbus A320neo family aircraft. This engine order marks a milestone for the Franco-American joint venture CFM, which is gradually recovering from an industry-wide maintenance crisis.

The engine agreement will power the 500 A320neo family aircraft confirmed by IndiGo at the 2023 Paris Air Show. The signed memorandum of understanding also includes IndiGo's plan to establish its own maintenance, repair, and overhaul (MRO) center, as well as a parts supply agreement, a move similar to that of Ireland's Ryanair.

CFM International, jointly owned by GE Aerospace and France's Safran, supplies engines for the Airbus A320neo and Boeing 737 MAX, competing with Pratt & Whitney. In recent years, the engine industry has faced ongoing challenges of extended maintenance cycles and parts shortages, leading some airlines to ground aircraft. CFM stated over the weekend that the number of aircraft grounded due to LEAP engine issues has dropped to "near zero."

Industry insiders noted that the decision by two of the world's largest low-cost airlines to build their own maintenance capacity can be partly seen as a defensive measure to secure maintenance resources and address maintenance capacity shortages. Boeing predicted last week that global annual MRO demand will grow by 88% to $215 billion by 2045.