This article is based on an official press release from IATA and additional industry data.

IATA and CFM International Extend Open MRO Agreement Through 2033 Amid Supply Chain Crunch

On January 20, 2026, the International Air Transport Association (IATA) and CFM International announced the renewal of their commercial engine maintenance agreement. The deal, which extends the existing “Conduct Policies” through February 2033, is designed to guarantee an open and competitive market for maintenance, repair, and overhaul (MRO) services for CFM engines.

The agreement covers all CFM commercial engines, including the widely used CFM56 series and the newer LEAP engines powering the Boeing 737 MAX and Airbus A320neo families. According to the joint announcement, the renewal aims to provide airlines with greater flexibility in choosing maintenance providers and parts, a critical factor as the industry grapples with rising costs and capacity bottlenecks.

Core Provisions of the Renewal

The original agreement, first signed in 2018 following an antitrust complaint filed by IATA, established a framework to prevent restrictive practices in the aftermarket. Under the terms of the extension to 2033, CFM International, a 50/50 joint venture between GE Aerospace and Safran Aircraft Engines, reaffirms several key commitments regarding the aftermarket ecosystem.

According to the press release, the agreement enforces the following “Conduct Policies”:

• Technical Access: CFM will continue to license its Engine Shop Manuals (ESM) to third-party MRO facilities, even if those shops utilize non-CFM parts or repairs.
• Non-OEM Parts: The use of Parts Manufacturer Approval (PMA) parts and non-CFM repairs is permitted without automatically voiding warranties on the unaffected portions of the engine.
• Warranty Protections: CFM agrees to honor warranties based on factual causation, meaning they cannot deny coverage for a failure unless it is proven that a non-OEM part caused the specific issue.
• Open Sales: The manufacturer commits to selling CFM parts and performing repairs on engines regardless of whether they contain non-CFM components.

“CFM should be commended for taking the lead… other manufacturers must take notice and step up.”

Willie Walsh, IATA Director General

Addressing the 2025-2026 Supply-Chain Crisis

This renewal arrives at a pivotal moment for the global aviation sector. According to a late-2025 report by IATA and Oliver Wyman, the industry faced an estimated $11 billion in total costs due to supply chain disruptions in 2025 alone. The report specifically attributed $5.7 billion of that surge to engine leasing and maintenance bottlenecks.

The data indicates that airlines spent approximately $3.1 billion on additional maintenance for older aircraft forced to fly longer lifecycles, and $2.6 billion on increased engine leasing costs. Turnaround times (TAT) for engine shop visits, which historically averaged 60 days, have reportedly ballooned to between 75 and 100 days, with some delays extending nearly a year.

Expanding the LEAP Ecosystem

A primary focus of the extended agreement is the LEAP engine, which is currently entering its first major wave of heavy maintenance checks. To mitigate capacity constraints, CFM has developed an “Open MRO Ecosystem.”

As detailed in industry reports surrounding the announcement, this network now includes major third-party providers licensed to perform full overhaul services, such as Air France Industries KLM E&M, Delta TechOps, Lufthansa Technik, ST Engineering, StandardAero, and the recently added MTU Maintenance facility in Dallas. The agreement provides the legal certainty these providers require to invest in the tooling and training necessary to service the growing fleet of LEAP engines.

AirPro News Analysis

While the extension of this agreement provides stability, it also serves as a strategic signal to the broader propulsion market. By securing a commitment to open competition through 2033, IATA is effectively setting a standard for aftermarket behavior that contrasts sharply with more restrictive models seen elsewhere in the industry.

Willie Walsh’s comments suggest that IATA intends to use this partnership as leverage to pressure other original equipment OEMs to adopt similar practices. With competitors facing criticism for proprietary repair networks and durability issues, the “open shop” model championed by the IATA-CFM deal may become a crucial differentiator for airlines selecting future fleet powerplants. However, as Walsh noted, the deal is “not a panacea”; while it removes legal barriers to competition, it does not immediately solve the physical shortage of parts and skilled labor currently hampering global MRO capacity.

Sources

• IATA Press Release