The International Air Transport Association (IATA) is considering the establishment of a dedicated working group to monitor the overall performance of the suppliers in the aircraft and engine value chain. The initiative, announced at the trade body’s annual general meeting taking place in Istanbul from June 4 to 6, will address delays in the delivery of new aircraft and maintenance, repair, and overhaul services. “OEM suppliers have been far too slow in dealing with supply-chain blockages that are both raising costs and limiting our ability to deploy aircraft,” said IATA director general Willie Walsh. “A solution must be found.”
The initiative builds on the experience IATA gained by addressing concerns over jet engine aftermarket practices, more specifically engine OEMs’ practice of withholding repair information from third-party maintenance shops, thereby limiting competition and consequently allowing the manufacturers to increase prices. The IATA-led effort resulted in CFM International agreeing in 2018 to adopt a code of conduct and associated measures to increase the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and Leap series engines. The agreement specified its product support policy and guidelines related to such aspects as licensing, warranties, servicing, technical support, repairs, communication, and contracting. Rolls-Royce followed suit and agreed to a similar voluntary agreement.
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