The International Air Transport Association (IATA) has welcomed Pratt & Whitney Canada's (P&WC) changes to contractual terms that had raised competition concerns in the market for used engine parts. These changes remove restrictions on maintenance shops in P&WC's network that could have limited independent suppliers' access to used engine material and related services. This development is expected to increase competition and choice in the turboprop engine aftermarket.
The changes announced by P&WC are limited to used parts for its PT6 and PW100-series turboprop engines. They do not cover Pratt & Whitney's larger commercial jet engines or address the use of regulator-approved alternative parts and repairs. According to IATA, the principles of fair access, competition, and customer choice should apply across the entire engine aftermarket, allowing airlines to choose from all regulator-approved maintenance facilities and parts.
Nick Careen, IATA's Senior Vice President of Operations, Safety, and Security, emphasized that the changes could play a significant role in alleviating parts shortages and maintenance capacity constraints. These constraints have increased costs and grounded aircraft. In the long term, the sector needs the efficiencies that more competition can bring to the engine aftermarket. Careen also highlighted that airlines should have the freedom to choose among all regulator-approved maintenance facilities and parts.
The scale of current supply chain challenges, including parts shortages and maintenance capacity deficiencies, is significant. An IATA-Oliver Wyman study estimated that supply chain constraints added approximately $5.7 billion to airlines' engine leasing and maintenance costs in 2025. Greater competition and more options for parts and repairs are among the measures that can help alleviate these pressures.
The outcome of the European Commission Directorate-General for Competition's P&WC probe adds to benefits gained earlier this year with the renewal of IATA's agreement with CFM International on aftermarket practices. This agreement enhances competition across CFM's commercial engine portfolio, increasing maintenance options by enabling independent maintenance providers to compete and supporting the use of all regulator-approved parts and repair options.
The changes by P&WC and the agreement with CFM International aim to address the supply chain challenges faced by the aviation industry. IATA has been working to ensure that airlines have access to a wider range of maintenance options and parts, which can help reduce costs and improve efficiency. The association continues to advocate for fair access, competition, and customer choice in the engine aftermarket.
The aviation industry is expected to benefit from increased competition and choice in the engine aftermarket. With more options available, airlines can make informed decisions about their maintenance needs, reducing costs and improving overall efficiency. IATA's efforts to promote competition and fair access in the engine aftermarket are ongoing, with the association working closely with manufacturers, regulators, and other stakeholders to ensure a more efficient and competitive industry.
Key points
- IATA welcomes Pratt & Whitney Canada's changes to contractual terms, enhancing competition in the used engine parts market.
- The changes are limited to used parts for P&WC's PT6 and PW100-series turboprop engines.
- The aviation industry faces significant supply chain challenges, including parts shortages and maintenance capacity deficiencies.
