IATA has entered into an
agreement with CFM International (CFM) designed to increase
competition in the market for maintenance, repair and overhaul
services (MRO) on engines manufactured by CFM, a 50/50 partnership
between GE and Safran Aircraft Engines.
"Airlines spend a tremendous amount of money on
the maintenance and repair of aircraft and engines to ensure we
are always operating to the highest levels of safety and
reliability," said Alexandre de Juniac, IATA’s Director General and CEO.
"This milestone agreement with CFM will lead to increased
competition among the providers of parts and services related to
the servicing of CFM 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."
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. Among the many elements of the agreement,
CFM has agreed to:
- License its Engine Shop Manual to an
MRO facility even if it uses non-CFM parts;
- Permit the use of
non-CFM parts or repairs by any licensee of the CFM Engine Shop
- Honor warranty coverage of the CFM components and
repairs on a CFM engine even when the engine contains non-CFM
parts or repairs;
- Grant airlines and third-party overhaul
facilities the right to use the CFM Engine Shop Manual for without
a fee; and
- Sell CFM parts and perform all parts repairs even when
non-CFM parts or repairs are present in the engine.
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. CFM has,
however, committed to apply the agreement to all commercial
engines produced by the company, including engines in its new LEAP
Series. GE, moreover, has agreed to apply the Conduct Policies to
other commercial aircraft engines that it produces in its own
Based on the agreement, IATA has
withdrawn a formal complaint it filed with the Competition
Directorate of the European Commission in March 2016.
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