IATA, CFM renew engine MRO agreement

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. “Airlines have long struggled with the aftermarket business practices of manufacturers, which have limited competition and resulted in high costs for airlines,” said Willie Walsh, IATA’s Director General. “These pressures have become even more acute as limited maintenance capacity and aerospace supply chain constraints have driven up costs and grounded aircraft. A recent IATA study estimated that these challenges added $5.7 billion to engine leasing and maintenance costs for airlines in 2025. The renewal of this agreement is well-timed. 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. 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. CFM should be commended for taking the lead with this important reform and other manufacturers must take notice and step up.” “The extension of the agreement between CFM and IATA reaffirms our commitment to a competitive open aftermarket for CFM products,” said Gaël Méheust, President and CEO of CFM International. “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. Despite the challenges of recent years—particularly those related to supply chain constraints—CFM places customers at the heart of its DNA. In 2026, we are committed to renewing and strengthening our efforts to ensure our customers’ complete satisfaction with our products and support. CFM pioneered an open MRO ecosystem with CFM56 engines, in which close to 40 shops compete for work – with CFM accounting for only about a third of overhauls. We’re applying the same model to CFM LEAP engines, in which six Premier MRO providers and more than a dozen other licensed shops compete for work.” First signed in 2019, the agreement includes Conduct Policies adopted by CFM to enhance opportunities for third-party providers of engine parts and MRO services. These commitments apply to all CFM commercial engines, including the CFM56 engine family, which powers many single-aisle aircraft in service today, as well as CFM LEAP engines. In practical terms, the agreement: Keeps maintenance options open – allowing airlines and MRO providers to use CFM technical manuals and repair instructions, including when engines contain non-CFM parts or repairs. Protects warranties based on facts, not sourcing choices – ensuring warranty coverage is assessed on what caused a problem, rather than penalizing airlines for using alternative parts or repairs. Expands effective maintenance capacity – enabling independent MRO providers to compete for engine work, helping reduce maintenance backlogs and aircraft downtime. Confirms access to alternatives to constrained OEM supply chains – by facilitating third-party parts and repair solutions where appropriate, easing pressure on limited engine and parts availability. Maintains the CFM liaison officer and the Trustee – as an interface for the market to address any questions and to find solutions. Beneficiaries of the agreement include CFM’s airline customers, aircraft lessors, third-party MRO facilities, and parts manufacturers. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]