Key facts
- Global airlines are urging jet engine makers to increase competition in the market for reconditioned parts.
- The International Air Transport Association (IATA) represents approximately 300 airlines.
- The European Commission closed an antitrust investigation into Pratt & Whitney Canada after it agreed to ease restrictions on used turboprop engine parts.
- Pratt & Whitney Canada will modify contractual clauses that previously restricted access to dismantled engines for parts.
- IATA estimates engine part and maintenance capacity shortages cost airlines nearly $6 billion last year.
- Aviation executives anticipate engine delays will persist for several years.
Global airlines are pushing for greater competition in the market for used jet engine parts, seeking to alleviate ongoing shortages and high costs. The International Air Transport Association (IATA), representing around 300 airlines, has called on engine manufacturers to relax restrictions that limit independent firms from providing reconditioned components.
This call follows a recent agreement between Pratt & Whitney Canada and the European Commission. The Commission closed an antitrust investigation into the turboprop engine maker after it consented to modify contractual clauses that previously restricted the supply of dismantled engines needed for harvesting used parts. This change is expected to make it easier for independent suppliers to access these engines, restore parts to meet certification standards, and sell them in competition with new ones.
Nick Careen, IATA’s senior vice-President of operations, safety and security, stated that while the agreement will benefit operators of ATR and Dash-8 turboprop aircraft, the focus should now shift to the larger jet engine markets, which present the biggest challenges and opportunities. Airlines have long accused engine makers of restricting competition and inflating prices, exacerbating widespread parts and labor shortages that have persisted since the COVID-19 pandemic.
Engine manufacturers, however, argue that their significant investments in developing new engine generations necessitate recouping costs to fund future innovation. The extent to which manufacturers permit third-party involvement in the aftermarket varies. Aviation executives at a recent conference in Copenhagen indicated that engine delays are likely to continue for several years, with one executive estimating it could take a few years to resolve the issue. Pratt & Whitney has noted that engine maintenance disruptions were easing in July, and IATA has previously extended a similar competition-upholding agreement with Pratt's competitor, CFM International.