IATA-CFM sign agreement on engine maintenance
The company has adopted a set of "Conduct Policies"
The International Air Transport Association (IATA) announced that it has entered into an agreement with CFM International (CFM) that will lead to increased competition in the market for maintenance, repair and overhaul services (MRO) on engines manufactured by CFM, a 50/50 partnership between GE and Safran Aircraft Engines.
Under the agreement, the company 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 many elements of the agreement, 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.
The contract includes specific provisions ensuring the implementation of CFM’s commitments with regard to CFM56 series engines which power some 13,400 single-aisle aircraft flying today. The company has, however, committed to apply the agreement to all commercial engines produced by the firm, including engines in its new LEAP Series. GE, moreover, has agreed to apply the Conduct Policies to other commercial aircraft engines that it produces in its own right.
Beneficiaries of the agreement include IATA, CFM’s airline customers, aircraft lessors, third-party MRO facilities and parts manufacturers.
Based on the MoU (Memorandum of Understanding) the Association has withdrawn a formal complaint it filed with the Competition Directorate of the European Commission in March 2016.
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