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IATA and CFM extend open aftermarket agreement

IATA and CFM International have renewed their pro-competitive agreement on engine maintenance
IATA and CFM International have renewed their pro-competitive agreement on engine maintenance © IATA

IATA has announced the renewal of its agreement with CFM International through February 2033, reinforcing efforts to increase competition in the MRO market for CFM engines. CFM is a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines.

The agreement is intended to address long-standing airline concerns over restrictive aftermarket practices that have limited competition and driven up costs. These pressures have intensified in recent years as maintenance capacity constraints and broader aerospace supply chain disruptions have grounded aircraft and increased expenses. IATA estimates that such challenges added US$5.7 billion to airline engine leasing and maintenance costs in 2025 alone.

IATA said the timing of the renewal is critical. While not a complete solution, the pro-competitive commitments embedded in the agreement are seen as essential to the long-term health of the industry and could also provide short-term cost and capacity relief as airlines work to meet demand amid ongoing supply chain issues. IATA’s Director General, Willie Walsh, praised CFM for leading on reform and urged other manufacturers to follow suit.

CFM said the extended agreement reaffirms its commitment to an open and competitive aftermarket. The company highlighted its broad MRO ecosystem, which includes dozens of third-party providers, delivering lower ownership costs and greater choice for airline customers. CFM noted that this model was pioneered with the CFM56 engine family and is now being applied to LEAP engines, with multiple independent shops competing for overhaul and repair work.

First signed in 2019, the agreement includes conduct policies adopted by CFM to expand opportunities for third-party engine parts suppliers and MRO providers across all CFM commercial engine programmes, including both CFM56 and LEAP engines.

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