The International Air Transport Association (IATA) and CFM International have reached a "milestone" deal on maintenance, repair and overhaul (MRO) services.
Under the agreement, CFM has adopted a set of "Conduct Policies" that will enhance the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and the new LEAP series engines.
Among the different elements included in the comprehensive deal, CFM has agreed to:
• License its Engine Shop Manual to an MRO facility even if it uses non-CFM parts;
• Permit the use of non-CFM parts or repairs by any licensee of the CFM Engine Shop Manual;
• Honor warranty coverage of the CFM components and repairs on a CFM engine even when the engine contains non-CFM parts or repairs;
• Grant airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual for without a fee;
• Sell CFM parts and perform all parts repairs even when non-CFM parts or repairs are present in the engine.
We expect increased competition will reduce airline operating costs and help to keep flying affordable
IATA Director General and CEO Alexandre de Juniac welcomed the news, saying that the "milestone agreement" will lead to increased competition among the providers of parts and services to CFM's engine operations.
“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 de Juniac.
Following the agreement, IATA withdrew a formal complaint it filed with the Competition Directorate of the European Commission in March 2016.