IATA and CFM International Extend Engine MRO Deal to Cut Airline Costs by $5.7B

The International Air Transport Association (IATA) and CFM International (CFM) have announced the extension of their key agreement. This renewal runs through February 2033. The goal is to support increased aftermarket competition in engine maintenance, repair, and overhaul (MRO) services. CFM International, a 50/50 partnership between GE Aerospace and Safran Aircraft Engines, manufactures widely used commercial jet engines.

This agreement covers the popular CFM56 engine family and the newer CFM LEAP engines. These power a large portion of the world's single-aisle aircraft fleet.

Industry Context and Cost Pressure

IATA Director General Willie Walsh highlighted the ongoing struggle for airlines. He noted that manufacturer aftermarket practices have often limited aftermarket competition. This has resulted in high costs for global carriers. These financial pressures are now more acute. This is due to limited maintenance capacity and aerospace supply chain constraints.

These issues have driven up expenses and grounded aircraft. A recent IATA study estimated these challenges. It showed they added $5.7 billion to airline engine leasing and maintenance costs in 2025 alone. Walsh called the renewal timely. He stated the pro-competitive practices are essential for a healthy industry.

• $5.7 Billion: Estimated added cost to airlines in 2025 due to aftermarket constraints.
• February 2033: The new expiration date for the renewed agreement.
• CFM56 and LEAP: The two major engine families covered by the agreement.

Commitment to an Open Aftermarket

CFM International President and CEO Gaël Méheust reaffirmed the company's commitment. He stated the extension supports a competitive open aftermarket for CFM products. The company's MRO ecosystem is growing. It includes dozens of third-party maintenance providers.

These providers overhaul, repair, and maintain CFM engines. This offers airlines greater choice and a lower cost of ownership. CFM pioneered this open model with the CFM56. Close to 40 shops now compete for overhaul work. This open model is also being applied to the LEAP engine program.

Key Pro-Competitive Provisions

The renewed agreement extends several key provisions designed to boost engine maintenance MRO competition. These terms were originally established in 2019 after IATA filed a competition complaint with the European Commission.

The framework ensures:

• Access to Technical Data: Airlines and MROs can access CFM technical manuals and repair instructions. This remains true even when non-CFM parts or repairs are used.
• Warranty Protection: Warranty coverage is assessed based on the root cause of a problem. Airlines are not penalized for using alternative parts or repairs.
• Support for Non-OEM Parts: The agreement supports the use of third-party-manufactured components, also known as Parts Manufacturer Approval (PMA) parts.

Impact on Airlines and the Global Fleet

The extension provides much-needed relief to the global fleet. The current maintenance capacity constraints are severe. They are causing significant delays and aircraft groundings. By supporting independent third-party maintenance providers, the agreement helps expand MRO capacity.

This increased competition is vital. It helps to ease the pressure from aerospace supply chain constraints. Ultimately, it aims to reduce the high airline operating costs associated with engine maintenance. Walsh urged other manufacturers to follow CFM's lead. He noted that similar reforms are needed to support greater competition and transparency across the entire aftermarket. The agreement is a critical step. It ensures the long-term health and efficiency of the commercial aviation industry.

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