TravelNewsAsia.com
Wed, 1 August 2018

IATA and CFM Sign Pro-Competitive Agreement on Engine Maintenance

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, IATAs 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."

GE9X powers Boeing 777X aircraft. Picture: GE. Click to enlarge.

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 Manual;

- 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.

The agreement includes specific provisions ensuring the implementation of CFMs 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 right.

Based on the agreement, IATA has withdrawn a formal complaint it filed with the Competition Directorate of the European Commission in March 2016.

Latest videos and podcasts: Asia Pacific Aviation Industry Update - AAPA Assembly of Presidents 2018 Press Conference, World's Best Airport Hotel - Interview with GM of Crowne Plaza Changi Airport Singapore, What is a Moxy Hotel? Interview with Matthias Y. Sutter, WWF and Sustainable Hotels / Tourism - Interview with Maggie Lee, JW Marriott Phuket Resort & Spa - Interview with Matthias Y. Sutter, GM, Sustainable Hotels - Crowne Plaza Changi Airport Interview with GM, Bruno Cristol, Saving Boracay Island, Philippines - Interview with Cyndy Tan Jarabata, Sustaining Tourism - Interview with Eric Ricaurte, Founder of Greenview, Sustainable Hotels - Interview with GM of JW Marriott Phuket, Diving in Phuket, Thailand - Interview with Sea Bees' Karen Lewis, Anthony Lark Explains PHIST, Raya Heritage Resort in Chiang Mai, Thailand - Interview with Naphat Nutsati, GM, Executive Chef at Raya Heritage Resort Chiang Mai, Pattana Golf Club & Resort in Sriracha, Thailand - Interview with MD, Thomas Tapken, Danesfield House Hotel & Spa in Marlow, England - Interview with GM, Anthony Cox, World Travel Market London 2018 - Interview with Simon Press, Senior Exhibition Director, airBaltic Airbus A220-300 Interview with Martin Gauss, CEO, Jake Needham - Interview with an American Author in Bangkok, Quick Look at the Dell Precision 7730 Mobile Workstation (Three Videos) and Dusit Thani Bangkok - Is It Really Going to Close? Interview with Titiya Xuto.

See latest HD Video Interviews, Podcasts and other news regarding: IATA, CFM, GE, Safran, Engines, MRO.

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Latest Travel News
Advertising
Advertising
Copyright © 1997-2018 TravelNewsAsia.com