StandardAero's Strategic Move with SalamAir Positions It for LEAP Engine MRO Dominance

The global aviation Maintenance, Repair, and Overhaul (MRO) sector is undergoing a quiet revolution, driven by the proliferation of fuel-efficient narrowbody aircraft powered by CFM International's LEAP engines. With over 5,000 LEAP engines already in service and a backlog of 10,000 orders, the demand for specialized MRO services is soaring. Into this opportunity steps StandardAero, a NYSE-listed MRO provider (ticker: SARO), whose partnership with Oman's fast-growing low-cost carrier SalamAir marks a pivotal step toward solidifying its leadership in the sector.

The SalamAir Partnership: A Strategic Lever for Growth

StandardAero's agreement with SalamAir centers on comprehensive MRO support for the LEAP-1A engines powering the airline's expanding fleet of Airbus A320neo aircraft. The partnership is not merely transactional—it's a strategic bet on two critical trends: SalamAir's fleet expansion and StandardAero's ability to scale its capabilities to meet rising MRO demand.

SalamAir currently operates 13 aircraft but plans to grow to 25 by 2028, including two new deliveries in July 2025 and a 10-aircraft order announced in February 2025. With each new aircraft, the airline's need for reliable engine maintenance grows proportionally. As SalamAir CEO Adrian Hamilton-Manns noted:
> "Safety, operational reliability, and cost-efficiency remain central to the airline's growth strategy. I express confidence in StandardAero's technical expertise and capabilities, emphasizing that the partnership will ensure the long-term performance and availability of SalamAir's aircraft."

The CFM Branded Service Agreement: A Differentiator

At the core of StandardAero's competitive edge is its CFM Branded Service Agreement (CBSA), signed in March 2023—the first such agreement with a non-airline MRO provider in the Americas. The CBSA grants StandardAero access to CFM's proprietary overhaul and repair technologies, enabling it to offer full-scope LEAP engine maintenance, including performance restoration shop visits (PRSV) and continued time engine maintenance (CTEM). This designation as a CFM LEAP Premier MRO provider positions StandardAero as a trusted partner for airlines seeking third-party expertise, distinct from airline-owned MRO operations.

The CBSA's significance lies in its exclusivity. As StandardAero's Vice President Olivier Ruffet emphasized, the partnership with SalamAir aligns with a global network of over 600 operators relying on the company's services. This network now includes high-growth markets like the Middle East, India, and Asia-Pacific—regions where LEAP engine adoption is surging.

Scaling Capabilities: 300+ Repairs and Workforce Training

To meet demand, StandardAero has invested in two critical areas: technical expertise and workforce development. By 2025, its Component Repair Services (CRS) team has industrialized over 300 component repairs for the LEAP-1A and LEAP-1B engines, reducing downtime for airlines. Meanwhile, its Aviation Mechanic Training Program at the San Antonio Training Academy is expanding its workforce of LEAP-certified technicians—a critical hedge against labor shortages in a growing industry.

These investments are paying off. In late 2024, StandardAero completed its first PRSV workscope for the LEAP-1A, demonstrating its ability to handle the most complex overhauls. Additionally, its 810,000-square-foot San Antonio facility—now approved by regulators in India, Japan, and the UAE—serves as a global hub for MRO services, enabling it to support airlines in regions critical to LEAP adoption.

Capturing High-Growth Markets

The partnership with SalamAir is part of a broader strategy to capitalize on regional aviation trends. The Middle East alone has over 150 LEAP engines in service and 600+ on order, while India, with 800 in-service and 2,400 on order, represents a massive opportunity. StandardAero's regulatory approvals in these markets, secured by April 2025, allow it to service local airlines directly.

Furthermore, StandardAero's 15-year agreement with a major Middle East airline, announced in February 2025, underscores its ability to secure long-term contracts. This deal ensures a steady revenue stream while reinforcing its reputation as a reliable partner for narrowbody fleets.

The Investment Case: SARO's Path to Market Leadership

For investors, StandardAero's moves signal a clear path to revenue growth and market dominance. Key catalysts include:
1. Fleet Expansion: SalamAir's growth and other airlines' LEAP engine orders will drive recurring MRO demand.
2. Scalability: The CBSA, global approvals, and component repair expertise position SARO to capture a larger share of the $42 billion narrowbody MRO market.
3. Financial Resilience: As a publicly traded company, StandardAero can access capital to expand its facilities or acquire competitors, further entrenching its leadership.

Risks and Considerations

Investors should note risks, including reliance on CFM's technology, potential competition from airline-owned MROs, and geopolitical tensions in key markets. However, StandardAero's CBSA and geographic diversification mitigate these risks.

Conclusion: A Compelling Investment in Aviation's Future

StandardAero's partnership with SalamAir is more than a deal—it's a blueprint for capturing the LEAP MRO boom. With its CBSA-enabled capabilities, expanding workforce, and strategic global footprint, SARO is positioned to deliver sustained revenue growth. For investors seeking exposure to the aviation MRO sector, StandardAero's NYSE listing offers a direct play on a company primed to lead in one of the industry's most critical niches.

Investment Recommendation: Consider a long position in SARO for investors with a 3–5 year horizon, particularly as LEAP engine fleets expand and MRO demand accelerates. Monitor quarterly earnings for updates on shop visit backlogs and fleet expansion milestones.