SIAEC and Safran Eye Joint Venture to Bolster Asia-Pacific LEAP MRO Capacity

Mohd Hanif Ismail - : Nov 26, 2025 - : 10:04 am

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In a move set to strengthen Singapore’s standing as a global aerospace hub, SIA Engineering Company (SIAEC) and Safran Aircraft Engines (SAE) have signed a Letter of Intent (LOI) to significantly expand their maintenance collaboration for the CFM LEAP engine family. The agreement, announced on 25 November 2025, outlines plans to explore the formation of a dedicated Joint Venture for LEAP Maintenance, Repair, and Overhaul (MRO) in Singapore, directly addressing the region's critical capacity crunch for next-generation narrowbody engines.

The proposed expansion aims to elevate the existing commercial agreement between the two aerospace heavyweights. Currently, SIAEC performs LEAP engine Quick Turn (QT) maintenance services—a lighter scope of intervention designed to minimise wing-off time—at its Aircraft Engine Services facility in Changi North. The new LOI signals a shift towards comprehensive MRO capabilities, potentially allowing the Singapore facility to handle full performance restoration shop visits. This development comes as the global installed fleet of CFM LEAP-1A and -1B engines, which power the Airbus A320neo and Boeing 737 MAX families respectively, enters a phase of intensive maintenance requirements.

According to a press statement released by SIA Engineering Company on 25 November 2025, the collaboration is designed to support Safran’s global network ramp-up. "We are delighted to deepen our partnership with SAE in support of its efforts to meet the growing global demand for LEAP engine maintenance," stated Mr Wong Yue Jeen, Chief Commercial Officer of SIAEC. He emphasised that the deal builds upon a longstanding relationship with the Safran Group and utilises SIAEC's strategic location to add "resilience to the LEAP maintenance network."

The Asia-Pacific Supply Chain Context

The timing of this agreement is pivotal for the Asia-Pacific region. Industry forecasts indicate that the region will account for approximately 40 per cent of global commercial engine MRO demand over the next decade. With the A320neo and 737 MAX fleets in Asia maturing, the demand for shop visits is projected to triple by 2030. Currently, the global MRO supply chain is facing severe bottlenecks, with airlines frequently citing extended turnaround times for engine overhauls.

By localising full MRO capabilities in Singapore, SIAEC and Safran aim to alleviate these pressures for Asian carriers, reducing the need to ship engines to facilities in Europe or North America. This move mirrors a broader trend where OEMs are seeking to regionalise support to lower logistics costs and carbon footprints.

Mr Nicolas Potier, Executive Vice President Support & Services for SAE, highlighted the necessity of this expansion: "This LOI underscores our commitment to expanding our global MRO network and supporting the strong ramp-up of LEAP engine maintenance services." He added that combining SIAEC’s "recognised expertise" with Safran’s OEM capabilities would deliver enhanced operational efficiency for airline customers.

Building on a Solid Foundation

This potential Joint Venture is not the first collaboration between the two entities; they already operate successful partnerships in Singapore, including ventures focused on landing gear and avionics. The groundwork for this engine-specific expansion was laid in early 2022, when SIAEC opened its specialised Aircraft Engine Services facility with an initial investment of roughly SGD9 million (US6.7 million). That facility was among the first in the region equipped with remote guided vehicles for engine transport and dedicated Quick Turn processes.

While the LOI represents a significant step forward, the companies noted that no definitive or binding agreements have yet been reached. The formation of the Joint Venture remains subject to further exploration and regulatory approvals. However, given the acute market demand for LEAP shop capacity, industry analysts expect rapid progression toward a finalised deal.

SIAEC has stated it will make further announcements as material developments occur. For now, the agreement stands as a strong signal that Singapore intends to capture the lion's share of the booming next-generation engine maintenance market in Asia.