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CRMA, our subsidiary specializing in the repair of engine parts and modules (CFM56, GE90, and GP7200), and KLM Engine Shop Parts Repair (CFM56, CF6, GEnX) are gearing up to repair the CFM LEAP engine by focusing on two pillars: leveraging its expertise in diverse engine types and making strategic investments in technology and human resources.

Specifically, this approach includes the following actions:

• Anticipation and Preparation: CRMA anticipated the transition from CFM56 to CFM LEAP engines and have prepared for the challenges through a dual strategy of expertise and investment. Also, KLM ES started preparing for the introduction of the LEAP in advance through investments, repair development and additional training of experienced personnel
• Extensive Expertise: The in-house expertise is highlighted by the high applicability of its CFM56, GE90, and GEnx repair processes to the LEAP engine, making it a valuable asset for AFI KLM E&M.
• Technological Adaptations: CRMA and KLM ES Parts Repair acknowledges differences in technology and design between CFM56 and LEAP engines, such as TAPS technology and multi-hole laser innovations, which require specific adaptations, but also some similarities with the GEnX.
• Strategic Investments: CRMA is investing in new technologies like a high-energy torch plasma machine and enhancing its Innovation Department to support LEAP repairs. KLM ES has obtained a Cold Metal Transfer welding (CMT) machine, different 5-axes machines & multiple different inspection robots, including a laser scanner and a 3D microscope which uses focus variation. More investments will be made into new machines enabling both CRMA and KLM Engine Services to become capable on more repairs of the leap engine.
• Human Resources Focus: Like in the whole industry, workforce shortages are a challenge and is addressed by expanding apprenticeship programs, adapting hiring methods, and emphasizing skill acquisition for a 4.0 MRO facility.
• Employee Retention: To retain employees, CRMA has implemented bonuses and support systems, resulting in significant new hires and improved staff confidence. Several upgrades in the employee conditions has helped KLM ES to retain employees, next to that a “Sourcing Team” is working on new hires including the introduction of a “inhouse repair training centre” for new employees, the first one did start the 2nd of September.
• Market Readiness: CRMA and KLM ES are prepared to meet the market demand for LEAP engine repairs, with capabilities ready even before their own fleet requires them.

Securing a steady supply of parts is crucial for maintaining operational efficiency and safety. At AFI KLM E&M, we have implemented a multi-faceted strategy to effectively mitigate supply chain disruptions, ensuring that our clients' fleets remain in peak condition, despite ongoing challenges and the need for continuous escalation with OEMs to enhance performance.

One of the cornerstones of our approach is maintaining regular and direct communication with OEMs, often requiring strong discussions to address ongoing issues and drive performance improvements. We engage in biweekly calls with our main suppliers, involving senior management from both AFI KLM E&M and the OEMs. These high-level interactions are critical for highlighting and escalating key issues, but it remains clear that the performance levels from OEMs are not currently acceptable, and significant efforts are needed to return to normal standards.

In situations where specific parts are unavailable on the market, we explore alternative solutions. One consists of repair parts rather than replace. This innovative approach not only mitigates supply chain disruptions but also promotes sustainability by reducing waste. In cases where OEMs are unable to deliver, another solution is to find alternative suppliers: for example, when faced with a shortage of an bearing at an OEM, we identified and sourced an alternative part from a different supplier, which was subsequently approved by the OEM.

Given the current supply chain uncertainties, we have prioritized increasing our inventory of critical spare parts whenever possible. This measure helps buffer against delays and ensures that essential components are available when needed, although it is not always sufficient given the current extended lead times and heightened demand.

We strive for productive partnerships with OEMs, and it proves beneficial. For instance, during the recent bustling summer season coinciding with the Olympic Games in Paris, several OEMs, including Collins, AerCap, and GE Aerospace, assisted us by allocating additional inventory at CDG Airport. This strategic initiative enabled us to meet the increased demand without sacrificing service quality. Our comprehensive strategy for mitigating supply chain issues reflects a realistic understanding of the difficult current landscape. Rest assured that we remain fully committed to addressing these issues head-on to maintain the highest standards of service and reliability for our clients, even as we navigate significant obstacles.