“Airlines have long struggled with the aftermarket business practices of manufacturers, which have limited competition and resulted in high costs for airlines.

These pressures have become even more acute as limited maintenance capacity and aviation supply chain constraints have driven up costs and grounded aircraft.

A recent IATA study estimated that these challenges added $5.7 billion to engine leasing and maintenance costs for airlines in 2025.

The renewal of this agreement is well-timed. While not a panacea, the practical and pro-competitive aftermarket practices that this agreement obligates are essential for a healthy industry in the long-term.

Critically, if used to its full potential, this agreement will also provide much-needed short-term cost and capacity relief for airlines as they work to meet customer demand amid ongoing aerospace supply chain failures.

CFM should be commended for taking the lead with this important reform and other manufacturers must take notice and step up,” said Willie Walsh, IATA’s director general.

“The extension of the agreement between CFM and IATA reaffirms our commitment to a competitive open aftermarket for CFM products. Our growing MRO ecosystem includes dozens of third parties that overhaul, repair, and maintain our engines, resulting in lower cost of ownership and maximum choice for our airline customers. Despite the challenges of recent years, particularly those related to supply chain constraints, CFM places customers at the heart of its DNA. In 2026, we are committed to renewing and strengthening our efforts to ensure our customers’ complete satisfaction with our products and support.

CFM pioneered an open MRO ecosystem with CFM56 engines, in which close to 40 shops compete for work – with CFM accounting for only about a third of overhauls. We’re applying the same model to CFM LEAP engines, in which six Premier MRO providers and more than a dozen other licensed shops compete for work,” said Gaël Méheust, President and CEO of CFM International.

What the Agreement Delivers for Airlines and the Industry

First signed in 2019, the agreement includes Conduct Policies adopted by CFM to enhance opportunities for third-party providers of engine parts and MRO services.

These commitments apply to all CFM commercial engines, including the CFM56 engine family, which powers many single-aisle aircraft in service today, as well as CFM LEAP engines.

In practical terms, the agreement: 

Keeps maintenance options open, allowing airlines and MRO providers to use CFM technical manuals and repair instructions, including when engines contain non-CFM parts or repairs.

• Protects warranties based on facts, not sourcing choices – ensuring warranty coverage is assessed on what caused a problem, rather than penalizing airlines for using alternative parts or repairs.
• Expands effective maintenance capacity – enabling independent MRO providers to compete for engine work, helping reduce maintenance backlogs and aircraft downtime.
• Confirms access to alternatives to constrained OEM supply chains – by facilitating third-party parts and repair solutions where appropriate, easing pressure on limited engine and parts availability.
• Maintains the CFM liaison officer and the Trustee – as an interface for the market to address any questions and to find solutions.

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

This came as leading aircraft manufacturer, Airbus Industries, on the sidelines of the summit, predicted that Nigeria’s domestic air traffic was set to increase by five per cent annually for the next two decades.

Festus Keyamo, Minister of Aviation and Aerospace Development, who disclosed news of the reconciliatory meeting yesterday at the ongoing African Aviation Summit in Abuja, noted that the development was one of the reasons President Tinubu travelled to the United Arab Emirates, UAE.

He also unveiled three roadmap projects, which include aerotropolis, aircraft leasing Company, ALC, and Maintenance Repair and Overhaul, MRO, facility, as well as five focus areas to realise the country’s vision of becoming an aviation hub in Africa.

The key areas listed include infrastructure upgrade, ALC, MRO facility and forex availability.

Keyamo said: “The recent global events further exposed the immense contribution and importance of air transportation as a catalyst for economic development, vital engine of global socio-economic growth, one of the greatest contributors to the advancement of modern society and a key instrument for achieving the United Nations Sustainable Development Goals, SDGs.

“These underscore why the world was greatly impacted when international aviation was disrupted by the pandemic and other global occurrences. It is the vision of this current administration to make Nigeria the aviation hub of Africa.

“Government welcomes major players in aircraft leasing and head lessors to invest in Nigeria airlines to provide state of the art aircraft.

“The government will ensure the enforcement of contract agreements and the rights of investors and indeed all parties are protected and Nigeria being a signatory to the Cape Town Convention will uphold international obligations.

“This administration is committed to ensuring that forex is readily available to entrepreneurs, thus the president has directed that the CBN holds quarterly reconciliation meetings, with a view to resolving this issue.

“CBN is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector. I wish to reiterate that my administration will continue to sustain the support being given to the industry.

‘MRO facility critical to govt vision on aviation’

“MRO facility is another critical aspect that can make the Nigerian aviation industry a hub on the continent. With the shortage of qualified engineers, the current administration is willing to provide all the necessary support for the establishment of world-class MROs and training organisations.

“On upgrading infrastructure, this includes upgrading of the Cat3 landing system, at major airports, construction of the second runway in Abuja, airport improvement programmes through concession and government willingness to partner with companies to turn major airports into Aerotropolis.

“On tax holidays, the current administration is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector.”

[Source]