Airlines Push for More Competition in Used Jet Engine Parts Market After EU Ruling

The International Air Transport Association (IATA), a trade group representing approximately 300 airlines, is calling on major engine manufacturers to increase competition in the market for reconditioned jet engine parts. The push follows a recent European Union antitrust settlement that addressed similar concerns in the smaller turboprop engine sector.

EU Settlement Sets Precedent

The call to action comes after the European Commission closed an investigation into Pratt & Whitney Canada last month. The turboprop engine maker, a unit of RTX, agreed to remove contractual clauses that restricted independent firms from accessing and supplying used parts for engines that power aircraft like the ATR and Dash-8, according to the Commission.

IATA now wants to see this principle applied to the much larger market for commercial jet engines. "That is certainly going to help the ATR and Dash-8 (turboprop aircraft) operators," Nick Careen, IATA’s senior vice-president for operations, safety and security, told Reuters. "Now is the opportunity for this to extend into the main (jet) engine markets because that is where the gold is, where the biggest challenge is."

Impact on Widespread Shortages

Airlines have been grappling with significant shortages of engine parts and maintenance capacity since the post-pandemic travel rebound, a situation IATA estimates cost the industry nearly $6 billion last year. Increasing the supply of certified, reconditioned parts could alleviate pressure on the supply chain by freeing up new components for newly built aircraft.

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However, industry executives expect the supply crunch to persist. Speaking at a conference in Copenhagen, Jennifer Moulton, global head of sales at Dubai Aerospace Enterprise, said, "It is going to take a long time before this issue is resolved – who knows, a few years," as reported by Reuters.

The Manufacturers' Perspective

Engine manufacturers argue that revenues from the aftermarket—the maintenance, repair, and overhaul (MRO) sector—are essential to recoup the massive research and development costs required for new engine technology. These companies contend that controlling parts and repairs is necessary to fund future innovation.

While Pratt & Whitney Canada welcomed the agreement with the European Commission, its parent company RTX did not have an immediate comment on IATA's broader call, Reuters reported. The debate highlights the ongoing tension between airlines seeking lower maintenance costs and more supply options, and original equipment manufacturers (OEMs) protecting their long-term business models.