Brazil's TAM Linhas Aéreas has extended its existing International Aero Engines V2500 engine maintenance agreement with MTU Maintenance Hannover until mid-2019. Continuing from the original 1999 contract, the new deal is expected to generate more than €500m ($700m) in total revenue.
The agreement covers the entire spectrum of MRO services, including possible on-site support, for 141 V2500 engines on the airline's fleet of A319, A320 and A321 aircraft, 57 engines more than in the original agreement. There are no contractual changes other than the increase in volume.
MTU says that no provisions have been made to extend the agreement to LAN Airlines aircraft, when the merger between LAN and TAM is complete. LAN's fleet of V2500-powered A319/320 aircraft are currently covered by a maintenance agreement with IAE.