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Philippine Airlines and AFI KLM E&M Extend GE90 Engine Agreement

Philippine Airlines and AFI KLM E&M Renew GE90 Engine Maintenance Agreement
Philippine Airlines has extended its long-term maintenance agreement with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) for the airline’s GE90 engines, reinforcing a strategic partnership amid mounting industry challenges. The renewed contract ensures that AFI KLM E&M will continue to provide comprehensive support services, including shop visits, predictive maintenance, spare parts supply, on-wing services, and engine Line Replaceable Unit (LRU) pool support. This agreement is specifically designed to address the operational demands and cost-efficiency requirements of Philippine Airlines’ aging fleet.
Strategic Importance Amid Market Pressures
The extension comes at a critical juncture for the regional aviation sector. Philippine Airlines recently issued a cautionary outlook for the second quarter, citing rising fuel prices and an impending national fuel shortage. These factors have heightened the airline’s focus on operational reliability and cost containment. By reaffirming its partnership with AFI KLM E&M, Philippine Airlines aims to maintain stability and optimize maintenance efficiency in the face of these external pressures.
Alvin Kendrich Limqueco, Senior Vice President-Chief Supply Chain Officer and Data Privacy Officer at Philippine Airlines, emphasized the significance of the renewed agreement, stating, “In renewing our GE90 support agreement with AFI KLM E&M, we are ensuring seamless operations and dependable service for our evolving fleet. Their expertise and deep insight into our operations make them a truly reliable partner.”
Pierre Teboul, Senior Vice President Commercial at AFI KLM E&M, highlighted the adaptability of their maintenance solutions, noting, “Continuing our support for Philippine Airlines, a pioneering GE90 operator in the Asia-Pacific region, is a true privilege. This renewed agreement highlights the strong mutual trust we have built over the years and demonstrates our ability to adapt to the evolving needs of a mature fleet. Our teams remain fully committed to delivering performance, reliability, and long-term value.”
Beyond the GE90 engines, the partnership also encompasses maintenance support for the CFM56-5B engines powering Philippine Airlines’ A320 fleet. This includes a dedicated local “OWS Corner” facility that provides tailored on-wing services.
Industry Context and Market Outlook
The renewal of this agreement coincides with forecasts that the Asia-Pacific engine maintenance, repair, and overhaul (MRO) market will surpass $30 billion by 2035. Industry leaders, including Roy de Vries of AFI KLM E&M, have underscored the increasing importance of advanced repair strategies and the expansion of industrial capacity to meet growing demand. These developments are occurring amid regional instability, with European carriers such as British Airways extending suspensions of flights to the Middle East due to ongoing conflict and airspace safety concerns. Such factors may influence competitive dynamics and operational strategies within the Asia-Pacific market.
Simultaneously, the aviation asset market remains active. AerFin, a specialist in aircraft and engine transactions, recently completed the sale of a CF6-80 engine to a Japanese investor, reflecting sustained interest in mature and proven engine platforms within established investment markets.
As Philippine Airlines contends with fuel market volatility and operational challenges, its renewed commitment to AFI KLM E&M underscores the vital role of robust maintenance partnerships in maintaining reliability and competitiveness in a rapidly evolving aviation environment.

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