Industry CFM and IATA sign agreement to increase competition

  • iata.org

The International Air Transport Association (IATA) and CFM International have entered an agreement adopting a set of “Conduct Policies” to 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 is designed to increase competition in the MRO-market (maintenance, repair and overhaul services) and both parties expect it to reduce airline operating costs.

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“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. 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,” said Alexandre de Juniac, IATA’s Director General and CEO.

Elements of the agreement are:

  • CFM will license its Engine Shop Manual to an MRO facility even if it uses non-CFM parts
  • CFM will permit the use of non-CFM parts or repairs by any licensee of the CFM Engine Shop Manual
  • CFM will honour warranty coverage of the CFM components and repairs on a CFM engine even when the engine contains non-CFM parts or repairs
  • CFM will grant airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual without a fee
  • CFM will sell CFM parts and perform all parts repairs even when non-CFM parts or repairs are present in the engine

“This agreement reflects CFM’s strategy to promote competitive MRO services and its continuous commitment to customer satisfaction” said Gaël Meheust, president and CEO of CFM International.

The agreement includes specific provisions ensuring the implementation of CFM’s commitments regarding CFM56 series engines. CFM has 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.

CFM is a 50/50 partnership between GE and Safran Aircraft Engines headquartered in Paris. Together, the manufacturers developed the turbofan engine CFM56 which is used in the Boeing 737, the Airbus A320 family and the A340, among others. CFM56 engines power some 13,400 single-aisle aircraft flying today.

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Source © iata.org, cfmaeroengines.com

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