Air France-KLM Lauds New Airbus A350 Support JV

The formal launch of a long-planned A350 component support joint venture (JV) with Airbus is a “major structural milestone” in Air France-KLM Group’s aftermarket strategy, group CEO Ben Smith said.

The 50/50 JV, Alpha Component Solutions (ACS)—technically between Airbus and Air France—blends the manufacturer’s Flight Hour Services (FHS) offerings and Air France-KLM Engineering & Maintenance’s (AFI KLM E&M) front-line aftermarket support experience. ACS manages a spares pool and provides both logistics and maintenance services to the global A350 fleet.

More than 500 aircraft already under Airbus FHS or AFI-KLM care are now covered by ACS, the companies said.

“We are very proud to highlight a major structural milestone in our MRO strategy,” Smith said on the group’s third-quarter earnings call Nov. 5. “This venture brings together the best of both worlds—the advanced capabilities of Airbus’ flight hour services and the deep frontline operational maintenance expertise of our MRO division.”

Airbus and Air France-KLM unveiled plans to form the JV in September 2023 and offer supply chain management, repairs, and a global component pool. The companies originally targeted the first half of 2024 for the JV’s launch. They publicly confirmed ACS was operational on Oct. 28.

“For A350 operators, reliable access to components is essential to maintaining fleet availability and operational performance,” said AFI KLM E&M Executive Vice President Anne Brachet. “At AFI KLM E&M, we combine extensive maintenance expertise with firsthand airline operational experience. By combining this understanding with Airbus’ FHS capabilities, Alpha Component Solutions will provide customers with a broader support network and solutions tailored to their operational needs.”

KLM took delivery of its first A350 at the beginning of October. Air France has a fleet of 43 and began operating them in 2019. The two airlines have commitments for a total of 99.

ACS “represents a major step forward in enhancing our A350 component support, bringing together the expertise and resources of both Airbus and Air France Industries KLM Engineering & Maintenance to deliver optimized solutions to our customers worldwide,” added Airbus Senior Vice President, Customer Services-Commercial Aircraft Cristina Aguilar Grieder.

The deal comes as AFM KLM E&M struggles to boost revenues, despite strong global aftermarket demand. The MRO division’s €568 million third-quarter revenue generated from third-party work was a slight decline from year-earlier figures—the only group unit to record a revenue dip. Its year-to-date third-party MRO revenue of €1.8 billion ($2 billion) is up 3.9%.

“The maintenance segment is more or less flattish,” Smith said on the call. “We had a better [third quarter] performance at KLM components, but it deteriorated a bit on the Air France component side.”