Friday, April 3, 2026

IATA and CFM International Renew Pro-Competitive Agreement on Engine Maintenance

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. 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 billion1 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,” said Willie Walsh, IATA’s Director General.

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