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Volvo Aero offers total availability in unique Gripen engine agreement

FMV and Volvo Aero have signed an agreement for Volvo Aero to provide maintenance, spare parts and product support to Gripen engines for five years in Sweden, Hungary and the Czech Republic. The agreement is unique of its type: Volvo Aero guarantees constant availability.
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The ”RM12 PBL” (Performance Based Logistics) agreement is expected to be worth approximately 1.2 billion SEK to Volvo Aero over a five year period (two years with an option for three more years). The agreement encompasses engine maintenance, spare parts supply and technical product support for the Volvo RM12, the Gripen’s engine.

The agreement is yet another step in developing the already successful cooperation between FMV (Swedish Defence Administration), the Swedish Armed Forces and Volvo Aero.

Contract negotiations have taken place over almost a two year period and have led to, among other things, FMV, the Swedish Armed Forces and Volvo Aero developing solutions that provide Volvo Aero with an incentive to increase cost efficiency. Volvo Aero’s obligations mean that Air Forces in three countries, Sweden, Hungary and the Czech Republic, will be guaranteed constant availability of their Gripen engines on a weekly basis. An availibility guarantee of this level is thought to be unique in the world.

“Benefits to the customer have been in focus throughout the negotiations. We are grateful for the confidence now being placed in us. This helps us to further strengthen our cooperation and our work with RM12 customers in three different countries,” comments Staffan Zackrisson, President and CEO at Volvo Aero.

The Volvo RM12 is now a well-proven engine. The Gripen has accumulated over 143 000 flight hours to date without a single engine-related failure or incident, which puts the RM12 in a class of its own.

“It is therefore no exaggeration to say that we can offer world-class when it comes to flight safety, availability and flight cost,” says Staffan Zackrisson.