UPDATE: As reported by MRO Network, the commercial agreement between IATA and CFMI takes effect on Feb. 28, seven months after its signature.
The resources linked from the following post have been updated to help participants in ARSA’s 2019 Executive to Executive Briefings, which will kick off the association’s Annual Conference on March 12, prepare for a special presentation on the IATA-CFMI agreement.
Even for those not attending “E2E” day – attendance is limited only to event sponsors – reviewing the content below will provide useful reference.
August 1, 2018
On July 31, the International Air Transport Association (IATA) announced an agreement with CFM International (CFMI) to increase engine maintenance competition. As a result, IATA has withdrawn its formal complaint filed with the Competition Directorate of the European Commission (EC) in March 2016.
CFMI, a 50/50 partnership between General Electric and Safran Aircraft Engines, agreed to adopt a set of “conduct policies” and associated implementation measures to enhance opportunities available to third-party providers of engine parts and maintenance services on the CFM and LEAP series engines. As described by IATA, CFMI has agreed to:
“This agreement shows how powerful the global airline community can be when it is determined,” said Sarah MacLeod, ARSA executive director. “The airlines applied pressure and contractual obligations to address problems that go beyond minimum safety regulations. IATA ensured the contract ‘beneficiaries’ included airlines, lessors, parts manufacturers and independent repair stations. Aviation safety agencies grappling with maintenance data availability issues should not take this agreement as an answer to their obligations to establish and ensure compliance with basic safety requirements.”
ARSA assisted the EC in its initial investigation of IATA’s 2016 complaint by responding to a questionnaire seeking in-depth information on certain practices of specific design approval holders. The association’s responses focused on aviation safety rules and how the national aviation authorities’ failure to enforce regulations even-handedly directly affected competition.
“This agreement is an important lesson,” said Marshall S. Filler, ARSA managing director and general counsel. “IATA and CFMI deserve a lot of credit for its comprehensive nature – it establishes a model for future contract negotiations between aircraft purchasers and the entire manufacturing community.”
To see all of ARSA’s work related to instructions for continued airworthiness, click here.
To read IATA’s complete release on the CFMI agreement, click here.
To access the agreement via CFMI’s website, click here.
