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The International Air Transport Association (IATA) announced on Jan. 20 that it has renewed with CFM International (CFM) through February 2033. CFM is a partnership between GE Aerospace and Safran Aircraft Engines.
The agreement was first signed in 2019 and is meant to support competition in the MRO service market for engines manufactured by CFM. IATA states that it is a struggle for airlines to deal with the aftermarket practices of manufacturers. The manufacturers have very little competition in this area, resulting in high prices. Limited maintenance capacity and supply chain constraints have driven prices even further, with an IATA study estimating $5.7 billion have added to engine leasing and maintenance costs for airlines in 2025.
"The renewal of this agreement is well-timed," said IATA Director General, Willie Walsh. "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."
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Conduct Policies in the agreement are designed to improve opportunities for third-party providers of CFM engine parts and MRO services. It allows airlines and MRO providers to use CFM technical manuals and repair instructions and compete for engine work. When doing repairs, CFM allows for the use of third-party parts to help reduce maintenance backlogs and aircraft downtime. Warranty coverage is assessed on what caused a problem, not the parts used.