IATA and CFM Renew Agreement to Boost Competition and Cut Engine Maintenance Costs for Airlines

CFM International is a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines and is one of the world’s largest manufacturers of commercial jet engines.

The International Air Transport Association (IATA) has announced the renewal of its agreement with CFM International through February 2033, reinforcing efforts to increase competition and transparency in the global market for aircraft engine maintenance, repair, and overhaul (MRO) services.

CFM International is a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines and is one of the world’s largest manufacturers of commercial jet engines.

IATA said the renewed agreement is particularly significant as airlines continue to face rising maintenance costs, constrained capacity, and ongoing aerospace supply chain disruptions.

Airlines Under Pressure From High Maintenance Costs

IATA Director General Willie Walsh said restrictive aftermarket practices by manufacturers have long limited competition and driven up costs for airlines — pressures that have intensified in recent years.

“Airlines have long struggled with the aftermarket business practices of manufacturers, which have limited competition and resulted in high costs,” Walsh said.

He noted that limited maintenance capacity and supply chain constraints have grounded aircraft and inflated expenses.

A recent IATA study estimated these challenges added US$5.7 billion to engine leasing and maintenance costs for airlines in 2025 alone.

“The renewal of this agreement is well-timed,” Walsh said. “While not a panacea, the pro-competitive aftermarket practices it obligates are essential for a healthy industry in the long term.”

He added that if fully utilised, the agreement could provide much-needed short-term cost and capacity relief as airlines work to meet customer demand amid ongoing supply chain failures.

Walsh also urged other manufacturers to follow CFM’s lead.

“CFM should be commended for taking the lead with this important reform, and other manufacturers must take notice and step up,” he said.

CFM Reaffirms Commitment to an Open Aftermarket

CFM International President and CEO Gaël Méheust said the agreement extension reaffirms the company’s commitment to a competitive and open aftermarket for CFM engines.

“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,” Méheust said.

Despite supply chain challenges in recent years, he said customer support remains central to CFM’s strategy.

“In 2026, we are committed to renewing and strengthening our efforts to ensure our customers’ complete satisfaction with our products and support,” he said.

CFM pioneered an open MRO ecosystem with its CFM56 engines, where nearly 40 independent shops compete for overhaul work, with CFM itself accounting for only about one-third of overhauls.

The same model is now being applied to CFM LEAP engines, with six Premier MRO providers and more than a dozen licensed shops competing globally.

What the Agreement Delivers for Airlines

First signed in 2019, the agreement includes a set of Conduct Policies adopted by CFM to enhance competition and expand opportunities for third-party MRO providers and parts manufacturers.

The commitments apply to all CFM commercial engines, including both the CFM56 and CFM LEAP families.

In practical terms, the agreement:

• Keeps maintenance options open, allowing airlines and MRO providers to use CFM technical manuals and repair instructions, even when engines contain non-CFM parts or repairs

• Protects warranties based on facts, ensuring coverage decisions are based on the root cause of an issue rather than penalising airlines for sourcing alternative parts or repairs

• Expands effective maintenance capacity by enabling independent MRO providers to compete for engine work, helping reduce maintenance backlogs and aircraft downtime

• Improves access to alternatives during supply chain constraints, facilitating third-party parts and repair solutions where appropriate

• Maintains oversight mechanisms, including the CFM liaison officer and an independent Trustee to address market concerns and resolve issues

Broad Industry Benefits

IATA said the agreement delivers benefits across the aviation ecosystem, including:

• Airline operators

• Aircraft lessors

• Independent MRO facilities

• Parts manufacturers

By improving access to technical data and safeguarding fair warranty practices, the agreement is intended to lower costs, increase resilience, and enhance competition at a time when airlines are under sustained operational and financial pressure.

IATA said the renewed agreement provides a practical example of how collaboration between manufacturers and industry stakeholders can help stabilise the sector while supporting long-term sustainability and growth.