IATA, CFM sign engine MRO agreement
Under the terms of the agreement, CFM reaffirms its commitment to maintain and foster robust and open competition within the MRO market.
CFM International — the 50/50 partnership between GE and Safran Aircraft Engines — and the International Air Transport Association (IATA) have signed a commercial settlement agreement concerning CFM’s maintenance, repair and overhaul (MRO) policies and activities.
Under the terms of this agreement, announced on 31st July, CFM reaffirms its commitment to maintain and foster robust and open competition within the MRO market, as well as the competitive nature of its MRO model.
As part of this agreement, CFM has published its Conduct Policies and associated Implementing Measures, specifying its product support policy and guidelines related to such aspects as licensing, warranties, servicing, technical support, repairs, communication, and contracting.
IATA says the Conduct Policies will enhance the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and the new LEAP series engines.
IATA highlights the fact that 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,
honour 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 without a fee,
sell CFM parts and perform all parts repairs even when non-CFM parts or repairs are present in the engine.
Based on the agreement, IATA has withdrawn a formal complaint it filed with the Competition Directorate of the European Commission (DG-COMP) in March 2016. That move followed the DG's decision in 2015 to launch an investigation into alleged abuses of dominant positions by manufacturers of aviation equipment with respect to their control of aftermarket repairs.