This paper presents a hierarchical application of Discrete Event Supervisory (DES) control theory for intelligent decision and control of a twin-engine aircraft propulsion system. A dual layer hierarchical DES controller is designed to supervise and coordinate the operation of two engines of the propulsion system. The two engines are individually controlled to achieve enhanced performance and reliability, necessary for fulfilling the mission objectives. Each engine is operated under a continuously varying control system that maintains the specified performance and a local discrete-event supervisor for condition monitoring and life extending control. A global upper level DES controller is designed for load balancing and overall health management of the propulsion system.