CFM International and the International Air Transport Association (IATA) have renewed their agreement on aftermarket services competitiveness for the next seven years.
The new contract extends the existing agreement, first signed by both parties in 2019, to February 2033. The terms include conduct policies adopted by CFM, a joint venture between GE Aerospace and Safran, aimed at enhancing opportunities for third-party providers of engine parts and MRO services covering the CFM56 engine family and newer-technology Leap engines.
IATA said that the agreement allows airlines and MROs to continue accessing CFM technical data, even when non-CFM parts or repairs are used. In addition, the agreement protects warranty coverage by basing decisions on root cause rather than sourcing choices; supports greater maintenance capacity by enabling independent MRO competition; and helps ease supply chain constraints by enabling access to parts and repairs from third-party maintenance providers. The framework also retains the CFM liaison officer and independent trustee to address market concerns and resolve issues.
Willie Walsh, IATA’s director general, said that the renewal of the agreement is well timed considering current industry supply chain challenges. “While not a panacea, the practical and pro-competitive aftermarket practices that this agreement obligates are essential for a healthy industry in the long term,” Walsh said.
“Critically, if used to its full potential, this agreement will also provide much-needed short-term cost and capacity relief for airlines as they work to meet customer demand amid ongoing aerospace supply chain failures.”
The aftermarket for both CFM56 and Leap programs operates in open network ecosystems, allowing third-party shops to compete for maintenance work. Nearly 40 shops make up the CFM56 aftermarket network, with around 40% of those engines yet to undergo their first shop visit. For the Leap, CFM has 18 licensed shops in its network and expects these to grow further in the coming years, with some 9,000 Leap engines delivered to date and about 11,000 more in the pipeline.
The Leap network includes six maintenance companies within its MRO Premier network launched in 2024, comprised of Lufthansa Technik, AFI KLM E&M, Delta TechOps, ST Engineering, StandardAero and, most recently, MTU Maintenance Fort Worth.
Gaël Méheust, president and CEO of CFM International, added that the extension of the agreement between both parties reaffirms the OEM’s commitment to a competitive open aftermarket for CFM-manufactured engines.
“Our growing MRO ecosystem includes dozens of third parties that overhaul, repair and maintain our engines, resulting in lower cost of ownership and maximum choice for our airline customers,” he said.
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