IATA and CFM International Renew Pro-Competitive Agreement on Engine Maintenance

The International Air Transport Association (IATA) announced the renewal of an agreement with CFM International (CFM) through February 2033, supporting increased competition in the market for maintenance, repair, and overhaul (MRO) services for engines manufactured by CFM, a 50/50 partnership between GE Aerospace and Safran Aircraft Engines.

Parties involved:
- International Air Transport Association (IATA)
- CFM International (joint venture between GE Aerospace & Safran Aircraft Engines)

Renewal period:
Extended through February 2033

Purpose:
To strengthen competition in the engine maintenance, repair, and overhaul (MRO) market for CFM engines

Why It Matters
- Airlines have faced high costs and limited competition in engine maintenance due to restrictive manufacturer practices.
- A recent IATA study estimated $5.7 billion in added costs in 2025 from supply chain constraints and limited maintenance capacity.
- This agreement aims to reduce costs, expand maintenance capacity, and ease supply chain pressures.

What the Agreement Delivers
- Open maintenance options: Airlines and MRO providers can use CFM manuals and repair instructions, even with non-CFM parts.
- Warranty protection: Coverage is based on actual cause of problems, not sourcing choices.
- Expanded capacity: Independent MRO providers can compete, reducing backlogs and downtime.
- Supply chain relief: Facilitates third-party parts and repairs to ease OEM bottlenecks.
- Oversight: Maintains liaison officer and trustee to ensure compliance.

Industry Impact
Airlines: Lower costs, more choice, reduced downtime
MRO providers: Greater access to compete for engine work
Parts manufacturers: Opportunities to supply alternatives to OEM parts
Aircraft lessors: Reduced leasing costs due to faster maintenance turnaround

Leadership Comments
- Willie Walsh (IATA DG): Praised CFM for leading reform, noting the agreement provides both short-term relief and long-term industry health.
- Gaël Méheust (CFM CEO): Highlighted CFM’s open MRO ecosystem, with dozens of third-party shops already competing for CFM56 and LEAP engine work.

This renewal is a major step toward a more competitive and resilient aviation aftermarket, ensuring airlines have more flexibility and cost-effective options for engine maintenance.