Safran announces 1 bln euro investment in engine repair network

BRUSSELS, Oct 29 (Reuters) – French jet engine maker Safran announced plans on Tuesday to invest more than 1 billion euros ($1.08 billion) and hire 4,000 people worldwide to “radically scale up” its global engine repair network.

The plan follows strong demand for the LEAP jet engines that it co-produces for Airbus and Boeing in co-operation with GE Aerospace and is expected to boost Safran’s share of the aftermarket, where engine makers make most of their income.

Safran and GE Aerospace produce the engines through their joint venture CFM International, the world’s largest engine maker by number of units sold, which is celebrating its 50th anniversary this year.

Engine maintenance has been a hot topic in aviation in recent years as increased wear and tear on the latest generation of engines contributed to long waiting times at repair shops, particularly for CFM’s rival Pratt & Whitney, exacerbating shortages of aircraft and pushing up fares.

Jean-Paul Alary, president of Safran Aircraft Engines, said the investment marked a change of scale in Safran’s repair network alongside unprecedented investment.

The plan envisages a capacity of 1,200 shop visits per year by 2028, Safran said in a statement.

($1 = 0.9242 euros) (Reporting by Tim Hepher; Editing by Dominique Vidalon and Ingrid Melander)

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