IATA Extends Competitive Engine Maintenance Agreement with CFM International

The International Air Transport Association (IATA) renewed its existing agreement with CFM International (CFM) through February 2033. This renewal enhances competition in the maintenance, repair, and overhaul (MRO) services for CFM-manufactured engines, a joint enterprise between GE Aerospace and Safran Aircraft Engines.

IATA director-general Willie Walsh commented, “Airlines have long struggled with the aftermarket practices of manufacturers that limit competition and raise costs.” He noted that a recent study showed these issues added $5.7 billion to airlines’ engine-related expenses in 2025.

A Timely Renewal

While not a complete solution, this agreement arrives at a critical juncture, providing essential competitive practices that will aid airlines facing capacity challenges amid supply chain issues.

According to Gaël Méheust, CFM’s President and CEO, *“This extension demonstrates our commitment to a competitive aftermarket for CFM products. We prioritize customer satisfaction and are dedicated to improving the MRO ecosystem involving many third-party service providers.”

Details of the Agreement

Originally established in 2019, the contract includes policies to empower third-party providers of engine parts and MRO services. Key points of the agreement are:

1. Maintains Options - Allows the use of CFM technical manuals by independent MRO providers.
2. Warranty Protection - Ensures warranty assessments are based on actual issues, not parts sourcing decisions.
3. Expands Capacity - Encourages competition among MRO providers, which helps minimize aircraft downtime.
4. Access to Alternatives - Facilitates third-party solutions to alleviate supply chain constraints.
5. Interface Maintenance - Retains a liaison to address market inquiries.

Beneficiaries include airlines, aircraft lessors, and third-party MRO facilities.