CFM International: No Longer the Bad Guy, What It Means for MROs
One of the largest manufacturers switches gears to allow PMA parts and DER repairs in their engines.
In August, CFM International and the International Air Transport Association (IATA) shocked the MRO world. CFM International had been a vocal opponent of MROs using PMA parts and DER repairs on their engines. That has all changed now.
The European Union Competition Commission was in the middle of an investigation of CFM International’s anti-competition tactics when IATA brought the complaint forward, citing unfair competition as their complaint.
In 2008, MARPA (Modification And Repair Parts Association) called out CFM International for some of its unfair remarks. When the European Union requested statements and evidence from MARPA and their members, CFM International acquiesced.
In response to CFM International’s agreement, IATA withdrew its complaint from the EU Commission.
What does this mean for MROs? Quite a lot.
Under this new agreement, CFM International agreed to license MRO facilities for repairs, even if they use non-CFM parts. MROs can receive this allowance upon obtaining the CFM International Engine Shop Manual. Any licensee of the CFM Engine Shop Manual is then permitted the use of non-CFM parts or repairs.
Perhaps one of the major points of the agreement entails engine maintenance. When non-CFM parts or repairs were found in a CFM engine, the company had previously refused to sell CFM parts or perform repairs. This has now changed. The selling of CFM OEM parts and all parts repairs may be performed even if non-CFM parts or repairs are present in the engine.
Airlines and aircraft receive a number of benefits from these concessions. In the agreement, CFM International states it will continue to honor warranty coverage of CFM components and repairs on a CFM engine, even when the engine contains non-CFM parts or repairs. CFM International also grants airlines and third-party overhaul facilities the right to use the CFM Engine Shop Manual without fees.
CFM International Official Statement:
“CFM International (CFM) and the International Air Transport Association (IATA) have signed a commercial settlement agreement concerning CFM’s MRO (maintenance, repair and overhaul) policies and activities.
Under the terms of this agreement, 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, which serves as a reference in the jet engine industry and has been a key element in the ongoing success of the CFM product line.”
IATA Official Statement:
“The agreement 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. CFM has, however, committed to apply the agreement to all commercial engines produced by the company, 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.”
Aereos and the Aereos family of companies welcome this new avenue for competition. Not only does this exhibit the safety and professionalism of the MRO industry, it eliminates a huge roadblock to helping us serve our customers. Our cost-effective DER repairs and maintenance procedures keep fleets running, safe, and in the air where they belong. We commend CFM International for this proactive, forward-thinking move to benefit their customers. This is they type of excellence CFM is known for throughout the industry, and we will be honored to work with their machines.