This agreement will be focused on increased competition in the market for maintenance, repair, and overhaul (MRO) services for engines manufactured by CFM
Moreover, this deal has a 50/50 partnership between GE Aerospace and Safran Aircraft Engines.
Willie Walsh, IATA’s Director General, added,
“Airlines have long struggled with the aftermarket business practices of manufacturers, which have limited competition and resulted in high costs for airlines. These pressures have become even more acute as limited maintenance capacity and aerospace supply chain constraints have driven up costs and grounded aircraft. A recent IATA study estimated that these challenges added $5.7 billion1 to engine leasing and maintenance costs for airlines in 2025.
The renewal of this agreement is well-timed. While not a panacea, the practical and pro-competitive aftermarket practices that this agreement obligates are essential for a healthy industry in the long-term. Critically, if used to its full potential, this agreement will also provide much-needed short-term cost and capacity relief for airlines as they work to meet customer demand amid ongoing aerospace supply chain failures. CFM should be commended for taking the lead with this important reform, and other manufacturers must take notice and step up.”
What Does the Agreement Deliver for Airlines and the Industry?
Signed in 2019, the agreement involves Conduct Policies, which are adopted by CFM to enhance opportunities for third-party providers of engine parts and MRO services.
In addition to this, the conduct policies will be applied to all CFM commercial engines, including the CFM56 engine family.
The agreement states :
Keeps maintenance options open, which allows airlines and MRO providers to use CFM technical manuals and repair instructions.
Protects warranties based on facts, not sourcing choices, ensures warranty coverage, which assesses the problems instead of penalising airlines for using alternative parts or repairs.
Expands effective maintenance capacity, enabling independent MRO providers to compete for engine work, which also helps reduce the maintenance cost and backlogs.
Confirms access to alternatives to constrained OEM supply chains, facilitates third-party parts and repair solutions where appropriate.
Maintains the CFM liaison officer and the Trustee, provide interface for the market to address any questions and to find solutions.
With the agreement’s clauses now finalised, CFM International and IATA are poised to strengthen their partnership. Backed by CFM’s 50–50 joint venture between GE Aerospace and Safran Aircraft Engines, the deal is expected to reduce costs and provide comprehensive warranty coverage, making it more commercially viable for airlines.
What do you think about this deal? Let us know in the comments below!
Aviation Reporter - A master's student at the University of Edinburgh, political scientist and journalist, Suhani contributes the latest trends and developments in the aviation industry to Travel Radar.
