The International Air Transport Association (IATA) has renewed its agreement with CFM International through February 2033, a move aimed at strengthening competition in the market for maintenance, repair and overhaul (MRO) services for CFM engines, at a time when airlines remain under acute cost and capacity pressure.

CFM International, a 50/50 partnership between GE Aerospace and Safran Aircraft Engines, manufactures the widely used CFM56 engine family as well as the newer LEAP engines, both of which power large numbers of single-aisle aircraft worldwide.

Against this backdrop, IATA Director General Willie Walsh pointed to long-standing structural issues in the aftermarket. Airlines, he said, “have long struggled with the aftermarket business practices of manufacturers”, a situation that has “limited competition and resulted in high costs”.

Those pressures, he added, have intensified as constrained maintenance capacity and wider aerospace supply-chain problems have pushed costs higher and grounded aircraft.

According to a recent IATA study, these challenges added $5.7 billion to engine leasing and maintenance costs for airlines in 2025.

Walsh described the renewal as timely, noting that while it is “not a panacea”, the pro-competitive practices embedded in the agreement are “essential for a healthy industry in the long-term”.

He also said that, if fully used, the framework could offer “much-needed short-term cost and capacity relief” as airlines work to meet demand “amid ongoing aerospace supply chain failures”.

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

From CFM’s side, president and Chief Executive Gael Meheust said the extension “reaffirms our commitment to a competitive open aftermarket for CFM products”.

He pointed to a growing MRO ecosystem that includes dozens of third-party providers able to overhaul, repair and maintain CFM engines, resulting, he said, in “lower cost of ownership and maximum choice for our airline customers”.

Despite the challenges of recent years, particularly those linked to supply-chain constraints, Meheust said CFM “places customers at the heart of its DNA”.

Looking ahead, he added that in 2026 the company is “committed to renewing and strengthening our efforts to ensure our customers’ complete satisfaction with our products and support”.

The agreement, first signed in 2019, is built around Conduct Policies adopted by CFM to enhance opportunities for third-party providers of engine parts and MRO services.

These commitments apply across CFM’s commercial engine portfolio, including the CFM56 engines that continue to power a large share of today’s single-aisle fleet, as well as the newer LEAP engines.

In practice, the framework is designed to keep maintenance options open by allowing airlines and MRO providers to use CFM technical manuals and repair instructions even when engines contain non-CFM parts or repairs.

At the same time, it seeks to protect warranties based on facts rather than sourcing choices, ensuring that warranty coverage is assessed on the cause of a problem, rather than penalising airlines for using alternative parts or repairs.

By enabling independent MRO providers to compete for engine work, the agreement is also intended to expand effective maintenance capacity, helping to reduce backlogs and aircraft downtime.

In parallel, it confirms access to alternatives where original equipment manufacturer supply chains are constrained, facilitating third-party parts and repair solutions where appropriate and easing pressure on limited engine and parts availability.

The continuation of the CFM liaison officer and the independent Trustee remains in place, providing an interface for the market to raise questions and resolve issues.

Meheust said CFM pioneered this open MRO model with the CFM56 programme, where close to 40 shops compete for overhaul work, with CFM itself accounting for only about a third.

He concluded that “the same approach is now being applied to LEAP engines, with six Premier MRO providers and more than a dozen other licensed shops competing for work.”

Beneficiaries of the renewed agreement include CFM’s airline customers, aircraft lessors, third-party MRO facilities and parts manufacturers.