CanAm’s strategic plan includes expansion of its fleet through the acquisition of Boeing 747-400 aircraft. This will necessitate extensive and capital-intensive maintenance overhauls. Each aircraft will require a comprehensive refurbishment estimated at over €40 million, with the primary cost driver being the overhaul and efficiency upgrades of its four General Electric CF6 engines—at up to €6 million per engine, totaling €24 million per aircraft.
To mitigate these costs, the establishment of a dedicated Maintenance, Repair, and Overhaul (MRO) facility at Las Palmas Airport (LPA) presents a compelling opportunity. Such a facility could internalize an estimated €13 million of the overhaul expenditure per aircraft—representing a potential cost reduction of nearly one-third.
Key maintenance tasks will include landing gear refurbishment, cabin interior replacement, and the overhaul of engines and auxiliary power units (APUs). Over a five-year horizon, MRO costs for CanAm alone could reach up to €400 million.
The GE CF6 engine family is one of the most trusted and widely deployed powerplants in commercial aviation, especially among widebody aircraft such as the Airbus A330, Boeing 767, and 747 series. Currently, more than 5,000 CF6 engines remain in active service across approximately 1,600 aircraft globally. Remarkably, over 70% of all CF6 engines ever produced are still in operation. With more than 238 global operators—many of them members of the Star Alliance network—the long-term need for regular CF6 engine maintenance remains robust.
Importantly, the global market volume for CF6-related maintenance is estimated at €20 billion, underscoring the strategic relevance of entering this segment.
Challenges and Strategic Assets
CanAm has identified three potential MRO partners for establishing a dedicated facility at LPA. Notably, one of these established providers is in the process of scaling down portions of its current maintenance portfolio due to internal restructuring. Over decades, this provider has accrued valuable certifications and specialized know-how in aircraft maintenance. However, some of these certifications risk expiration if not actively applied. Transferring these capabilities to a new facility at LPA would preserve them within the European regulatory domain, while also expanding the scope of maintenance offerings.
Strategic Solution
Several European MRO providers have successfully implemented offshore maintenance sites. Establishing a full-scale MRO operation in Las Palmas would not only be a regional game changer for the Canary Islands but would also contribute significantly to the broader European aerospace maintenance network.
A cornerstone of this vision is the relocation of GE CF6 engine overhauls to Las Palmas in collaboration with one of the aforementioned MRO partners. CanAm’s proposal includes the development of a new line and base maintenance hub—supported by modern tooling, certification partnerships, and dedicated management structures. This would enable CanAm, along with associated operators, to generate sustainable maintenance-related income streams in the region.
Implementation Plan
The development roadmap begins with performing C- and D-checks and managing the logistics of component shipment to existing overseas overhaul centers. In parallel, local capabilities would be incrementally expanded to perform advanced maintenance tasks on-site, such as:
- Cabin Systems Overhaul: Including galley systems, seating, and interior fittings.
- CF6 Engine Maintenance: Line and base maintenance for GE CF6 engines, with full overhauls costing approximately €24 million per aircraft.
- APU Servicing and Overhaul: With per-unit costs around €1 million.
- Landing Gear Overhaul: A critical and complex process required roughly every six years, with estimated costs of €800,000 per aircraft.
- Climate Pack Servicing: Dual air conditioning systems incorporating multiple heat exchangers, turbines, valves, and electronic components. Initially, these would be refurbished by the OEM, with installation and eventually full overhaul transitioning to the LPA site.
Summary
The establishment of a full-scale MRO facility at Las Palmas Airport presents a compelling business case—both for CanAm and for the broader aviation ecosystem. Strategically located, Las Palmas offers not only logistical advantages but also geopolitical stability and access to a skilled, trainable workforce.
CanAm’s huge 42-ton cargo capacity per flight ensures the secure and direct airlift of sensitive high-value components from the U.S. to the maintenance site. A feasibility analysis projects a business volume of approximately €300 million for CanAm alone, against an initial infrastructure investment of only €30 million.
Beyond financial return, the project would deliver high-quality employment opportunities to the Canary Islands and support the creation of a technical training base for young local talent. The vision is to initially establish a large-scale maintenance hangar at LPA or TFS Airport, focused on component disassembly and external refurbishment, followed by reintegration at the site. Over time, this model would evolve toward full-spectrum in-house overhaul capabilities in collaboration with leading MRO partners.
For all of the above reasons, CanAm strongly advocates a local Maintenance, Repair, and Overhaul facility at Las Palmas Airport.