Pratt & Whitney Canada's Contract Changes Are A Step Towards An Improved Engine Aftermarket

(MENAFN- Mid-East Info)

The International Air Transport Association IATA welcomed changes by Pratt & Whitney Canada P&WC to contractual terms that had raised competition concerns in the market for used engine parts.

The changes remove restrictions on maintenance shops in P&WC's network that could have limited independent suppliers' access to used engine material and related service. The changes are limited to used parts for P&WC's 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.

“The European Commission Directorate-General for Competition's work has resulted in Pratt & Whitney Canada making changes that will bring more competition and choice to one part of the turboprop engine aftermarket. But critically, the principles of fair access, competition and customer choice should apply across the entire engine aftermarket.

Whatever engine an airline is using, the airline should have the freedom to choose among all regulator-approved maintenance facilities and regulator-approved parts and repairs. In the short term, this could play a significant role in alleviating parts shortages and maintenance capacity constraints that have increased costs and grounded aircraft. And in the long term, the sector needs the efficiencies that more competition can bring to the engine aftermarket,” said Nick Careen, IATA's Senior Vice President Operations, Safety and Security.

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 some $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. The agreement enhances competition across CFM's commercial engine portfolio with a similar focus of increasing maintenance options by enabling independent maintenance providers to compete and supporting the use of all regulator-approved parts and repair options.

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