IATA, CFM ink deal on engine maintenance

Aug 01, 2018: The International Air Transport Association (IATA) has entered into an agreement with CFM International (CFM) that will lead to increased competition in the market for maintenance, repair and overhaul services (MRO) on engines manufactured by CFM, a joint venture between GE and Safran Aircraft Engines.

“We expect increased competition will reduce airline operating costs and help to keep flying affordable. And we hope that this agreement will be an example for other manufacturers to follow,” said Alexandre de Juniac, IATA’s director general and CEO.

Under the agreement, CFM has adopted a set of “Conduct Policies” that will enhance the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and the new LEAP series engines.

The agreement includes specific provisions ensuring the implementation of CFM’s commitments with regard to CFM56 series engines which power some 13,400 single-aisle aircraft flying today.

Industry body IATA hopes that the agreement will benefit IATA, CFM’s airline customers, aircraft lessors, third-party MRO facilities and parts manufacturers.

Based on the agreement, IATA has withdrawn a formal complaint it filed with the Competition Directorate of the European Commission in March 2016.