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Airlines Demand Easier Access to Reconditioned Jet Parts
14 Sep
Summary
- Airlines seek easier access to reconditioned engine parts.
- Pratt & Whitney Canada settled an antitrust probe over used parts.
- Engine parts shortages cost airlines nearly $6 billion last year.
Global airlines, represented by the International Air Transport Association (IATA), are pressing engine makers to facilitate independent firms' access to reconditioned parts. This initiative escalates a months-long dispute over engine competition and component scarcity.
Recently, the European Commission concluded an antitrust investigation into Pratt & Whitney Canada. The engine maker agreed to remove contractual restrictions that hindered independent suppliers from obtaining dismantled turboprop engines for parts restoration. This settlement is expected to benefit operators of ATR and Dash-8 aircraft.
IATA is now advocating for this accessibility to extend to the primary jet engine markets, which present greater challenges and higher value. Airlines frequently cite engine manufacturers' practices as contributors to restricted competition and inflated prices, exacerbating parts and labor shortages that have persisted since the COVID-19 pandemic.
Engine manufacturers contend that their significant investments in developing new engines necessitate recoupment through aftermarket sales to fund ongoing innovation. The availability of used parts also plays a crucial role in alleviating pressure on the supply of new aircraft components. IATA estimates that engine part shortages and maintenance capacity issues incurred nearly $6 billion in costs for airlines in the previous year.
