MRO & Manufacturing
IATA and CFM International Extend Open MRO Agreement Through 2033
IATA and CFM International renew their engine maintenance agreement through 2033, ensuring open MRO services amid aviation supply chain challenges.

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
Photo Credit: IATA
MRO & Manufacturing
GE Aerospace CNC Apprenticeship Graduates 80 in First Year
GE Aerospace marks one year of its Wilmington, NC CNC machinist apprenticeship, graduating 80+ participants trained to produce jet engine components.

GE Aerospace announced on August 25, 2026, that more than 80 participants have graduated from its Computer Numerical Control (CNC) machinist apprenticeship program in Wilmington, North Carolina, during the initiative’s first year of operation. The milestone highlights the manufacturer’s ongoing efforts to alleviate aerospace supply chain constraints by accelerating the training of skilled labor for critical jet engine component production.
In a press release issued to mark the program’s anniversary, GE Aerospace detailed that the eight-week training pipeline was developed in partnership with Cape Fear Community College (CFCC). The initiative supports the production of precision core engine parts, including blisks, spools, and high-pressure turbine disks, which are currently in high demand across both commercial and military aviation sectors.
Workforce development and training structure
The apprenticeship model condenses the initial skills acquisition phase into an eight-week window. Participants undergo five weeks of intensive instruction at CFCC facilities before moving to the GE Aerospace plant floor for applied training. The curriculum is designed to transition individuals with no prior aviation manufacturing experience into capable CNC machinists. The program is also supported by funding from North Carolina’s NCEdge initiative.
Mark Moon, the GE Aerospace site leader in Wilmington, stated that the program is essential for growing the local workforce required to deliver critical engine parts to customers. The initiative targets candidates from diverse professional backgrounds who are looking to enter the aerospace manufacturing sector.
“I joined the apprenticeship program to pursue a new career path and create a better future for myself and my family. It’s a great way to step into this field where you can thrive and make a career out of it,” said Joseph Knox, a recent graduate of the program.
Broader manufacturing investments
The Wilmington apprenticeship program operates within the context of a $1 billion U.S. manufacturing investment planned by GE Aerospace for 2026. Of that total, the company allocated $160 million to its North Carolina facilities, with $60 million specifically directed to the Wilmington site to expand capacity and upgrade equipment.
The educational partnership builds on prior philanthropic investments in the region. The GE Aerospace Foundation awarded a $100,000 grant to CFCC in 2024 to support machining bootcamps and scholarships. Additionally, the foundation donated $500,000 in 2025 to the Manufacturing Institute’s Heroes MAKE America initiative. CFCC President Jim Morton noted that the collaboration illustrates the function of community colleges in building the talent pipelines necessary to support regional economic and industrial expansion.
AirPro News analysis
We view the rapid scaling of the Wilmington apprenticeship program as a direct response to the persistent skilled labor shortages bottlenecking global engine production and maintenance, repair, and overhaul (MRO) networks. By vertically integrating the training process and partnering directly with local educational institutions, original equipment manufacturers (OEMs) like GE Aerospace can bypass traditional, slower labor acquisition methods. The specific focus on CNC machining for high-pressure turbine disks and blisks targets the exact components that have historically paced engine delivery schedules and constrained aftermarket support.
Sources: GE Aerospace
Photo Credit: GE Aerospace
MRO & Manufacturing
AAE Opens 1900sqm MRO Facility at Albury Airport Australia
Australian Aerospace Engineering opens a new MRO facility in Albury, NSW, supporting UH-60M Black Hawk sustainment for the Australian Army.

Australian Aerospace Engineering (AAE) officially opened a new 1,900-square-meter Maintenance, Repair, and Overhaul (MRO) facility adjacent to Albury Airport (ABX) in New South Wales on August 25, 2026. The purpose-built site consolidates the company’s aerospace maintenance and manufacturing capabilities to support domestic aviation and defense operations.
In a press release issued on August 25, AAE detailed that the new infrastructure expands its capacity to perform complex aerospace work domestically. The opening coincides with an expanded Partnerships announcement from Lockheed Martin Australia, integrating the Albury facility into the sustainment network for the Australian Army’s UH-60M Black Hawk Helicopters fleet.
Facility capabilities and defense integration
The new site brings together multiple specialized services under one roof. These include aircraft maintenance, component overhaul, non-destructive testing (NDT), machining, manufacturing, spare-parts storage, and specialist surface treatment. The facility features a semi-downdraft heated spray booth and an adjoining helipad designed specifically to support maintenance operations for medium to large helicopter platforms.
The infrastructure investment directly supports AAE’s growing role in the Australian defense supply chain. On the same day as the facility opening, Lockheed Martin Australia confirmed the site will support the sustainment of the Australian Army’s UH-60M Black Hawk fleet. AAE also lists Sikorsky Australia, Pilatus Australia, and BAE Systems among its defense and aerospace partners.
Regional economic impact and company growth
The Albury facility marks a significant expansion for AAE, which has operated for more than 20 years. The company has grown its workforce from an initial three-person family business to a current team of 14 employees.
Justin Clancy MP, Member for Albury, officiated the opening ceremony. He noted that the facility provides a foundation for ongoing growth, including the addition of new engineering and technical roles in the coming years.
“The opening of AAE’s new facility is a fantastic outcome for Albury, creating opportunities for highly skilled local jobs and demonstrating what regional Australian businesses can achieve in advanced aerospace and Defence Industries,” Clancy said.
AAE Chief Executive Officer Adam Johnston stated that the new site gives the company the space and resources required to take on more complex work. Prior to the formal opening, the Governor of New South Wales, Margaret Beazley, conducted an official tour of the newly constructed facility on February 18, 2026.
AirPro News analysis
We view the expansion of regional MRO capabilities in Australia as a critical step in building sovereign defense industrial capacity. By locating specialized services like NDT and component overhaul outside major metropolitan hubs, companies like AAE reduce supply chain bottlenecks for critical platforms like the UH-60M Black Hawk. The integration of a dedicated helipad and specialized spray booth indicates a clear strategic focus on rotary-wing sustainment, positioning the Albury site as a specialized node in the broader Lockheed Martin and Sikorsky Australia support network.
Sources: Australian Aerospace Engineering
Photo Credit: Australian Aerospace Engineering
MRO & Manufacturing
Lion Group Opens Batam Aero Engine MRO Facility in Indonesia
Lion Group launched Batam Aero Engine on Aug 19, 2026, offering engine and APU MRO services to serve Southeast Asian operators.

Lion Group has officially commenced operations at its new Batam Aero Engine maintenance, repair, and overhaul (MRO) facility in Indonesia, aiming to capture a larger share of the Asian engine maintenance market and reduce domestic reliance on foreign service providers.
The facility, which opened on August 19, 2026, provides both on-wing and off-wing maintenance for jet engines, turboprop engines, and Auxiliary Power Units (APUs). The Launch was detailed in a press release issued by Lion Group on August 21, 2026, highlighting the company’s push to localize critical aviation supply chains.
Technical capabilities and infrastructure
Batam Aero Engine enters the market with specialized diagnostic and repair capabilities designed to service a variety of powerplants. According to the Lion Group press release, the facility is equipped to perform complex procedures including Low Pressure Turbine (LPT) module replacements.
The maintenance center also features advanced borescope inspection equipment. Certified personnel will utilize IPLEX NX, IPLEX GX/GT, and Mentor Flex systems to conduct internal engine diagnostics. These capabilities allow technicians to assess engine health and identify potential defects without requiring full engine teardowns, thereby reducing maintenance turnaround times for operators.
Strategic expansion in the Asian MRO market
The inauguration event in Batam drew key figures from both the company and Indonesian regulatory bodies, including Lion Group Founder Rusdi Kirana and Batam Mayor Dr. Amsakar Achmad. The strategic placement of the facility in Batam leverages existing industrial infrastructure and proximity to regional trade routes to attract maintenance contracts from across Southeast Asia-Pacific.
Lion Group President Director Captain Daniel Putut Kuncoro Adi emphasized the dual focus of the new enterprise.
“We hope this facility can serve domestic needs as well as friendly countries and further strengthen Indonesia’s aviation industry,” Adi stated, according to reporting by Aviation Business News.
Indonesian regulators also view the facility as a step toward greater self-sufficiency in the aviation sector. Sokhib Al Rokhman, Director of Airworthiness and Aircraft Operations at Indonesia’s Directorate General of Civil Aviation (DGCA), highlighted the broader national strategy during the launch.
“We want to strengthen aviation independence by making Batam Aero Engine an MRO hub that is efficient, responsive, and competitive in the Asian market,” Rokhman said, as reported by ePlaneAI.
AirPro News analysis
The establishment of Batam Aero Engine represents a calculated vertical integration Strategy by Lion Group. By bringing engine and APU maintenance in-house, the operator can better control maintenance costs and mitigate Supply-Chain bottlenecks that have constrained the global MRO sector in recent years. Furthermore, positioning the facility in Batam allows Indonesia to compete directly with established MRO hubs in neighboring Singapore and Malaysia. If the facility can secure third-party contracts as intended, it will mark a significant maturation of Indonesia’s domestic aviation technical capabilities and workforce.
Sources: Lion Air Public Relations
Photo Credit: Batam Aero Engine
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