CFM warranty change could adjust the sums on its parts

• Published in: Flight international 2018-10, Vol.194 (5656), p.18-19
• Main Authors: Gubisch, Michael, Hemmerdinger, Jon
• Format: Magazinearticle
• Language: English
• Subjects: Agreements; Aircraft maintenance; Airlines; Aviation; Business; Competition; Consultancy services; Cost control; Cost reduction; Customer services; Engines; Licenses; Maintenance management; Market positioning; Policies; Warranties
• ISSN: 0015-3710; 2059-3864

CFM International's recently revised aftermarket policies may spur reshuffling of the maintenance, repair and overhaul industry, leading engine shops to adjust business models as airlines consider lower-cost options. Under the new framework, some CFM-licensed shops could begin selling non-CFM-approved parts and repairs, while independent shops could align with the engine maker, says Dave Marcontell, general manager of consultancy Oliver Wyman's Cavok unit. "Previously, you had to be an authorised service centre or independent, but not both," he says. Now those shops can do different types of builds. In July, CFM released 41 pages of "conduct policies", broadly saying that its service licences and warranties do not discriminate against the use of non-OEM material; referring to spares developed under a parts manufacturer approval (PMA) and repairs devised under a designated engineering representative (DER) certificate. The policies are part of an agreement with IATA, which in 2016 filed complaints against CFM and Honeywell with the European Commission's competition office.