Ryanair announced a 10-year engine maintenance deal with General Electric Engine Services today.
The deal carries a 10-year optional extension, Europe's largest low-fares carrier said in a statement, but financial details were not immediately available.
"We have secured a long-term agreement which will enable us to significantly reduce our maintenance and overhaul costs," Ryanair's Director of Engineering, Mr Michael Hickey, said in a statement.
GE will do all engine repairs and overhaul and provide spares and technical support for Ryanair's fleet of Boeing 737 planes and those to be delivered through 2010.
Ryanair flies 59 Boeing 737s, has 96 on order and has options to buy 123 more. The planes are powered by CFM56 engines built by CFM International, a joint venture between GE and France's Snecma.
Ryanair shares rose 0.2 per cent to €4.10 in early trade.
The shares rose 9 per cent last week on lower oil prices and optimism about quarterly earnings due today.