Aero Norway focus on benefits of competition following IATA-CFM agreement

posted on 2nd August 2018 by yumna
Aero Norway focus on benefits of competition following IATA-CFM agreement

Aero Norway has clarified its focus for the future: to reap the benefits of a competitive market as a recent agreement, headed by IATA, allows further opportunities for MRO and engine parts providers.

Aero Norway stated: “As the International Air Transport Association (IATA) forms an agreement with CFM International (CFM) to improve the opportunities available to third-party providers of engine parts and MRO services on the CFM56 and the new LEAP series engines, authorised CFM repair station Aero Norway is set to be a beneficiary alongside airlines, lessors, other third-party MROs and parts manufacturers.

The benefits will accrue for all parties via increased competition in the marketplace for maintenance, repair, and overhaul services on engines manufactured by CFM. The result will be to reduce operating costs.

Glenford Marston, CEO of Aero Norway praises CFM on reaching such a significant agreement with IATA and considers the knock-on effect that their new conduct policies will have across the entire industry.

“Authorised third-party repair shops like Aero Norway are part of a recognised expert supply chain and we are keenly awaiting ratification of the proposed new conduct policies” explains Marston.

“These proposed measures mean that we will be able to pass on savings directly to airline customers, by reducing our ‘fully-burdened’ rates which presently include licence fees and a % of revenue per engine – this is our chance to offer more flexible engine MRO solutions and to give something back.”

He goes on to say that maintaining dispatch reliability, and reducing operating costs to ensure that airlines can thrive as businesses by continuing to offer affordable flights, are key aspects of the industry.

“As OEMs seek to tighten their hold on the supply chain, operators and lessors of mature aircraft assets face enormous pressure as they seek to maintain, upgrade and transition older aircraft cost-effectively in the face of continued delays in new aircraft deliveries.”

Specifically the agreement covers CFM56 series engines. The CFM56-5B is the engine choice of the global A320 family due to its high reliability and durability, and the CFM56-7B is exclusively powering the B737 NG – making it the most popular engine combination in commercial aviation.

However, CFM will apply the agreement to all commercial engines produced by the company, including engines in its new LEAP Series.

“Aero Norway aspires to remain a CFMI overhaul specialist for the foreseeable future as this is where the organisation holds a depth of expertise and knowledge” continues Marston.

“We have held talks with CFMI and the team at Aero Norway hopes that the rigorously sustained quality output of the repair shop will support our strategy to obtain a licence for the LEAP engine because eventually there will be a lot of demand for this engine type and it is evident that the crucial role that third party repair shops play in maintaining the efficiency of supply chain is recognised.”

It will not be until the end of 2018 at the earliest that CFMI will consider granting any repair licences to independent MROs like Aero Norway.

But with a relationship already spanning 25 years, it is optimistic that burgeoning global operator and lessor demand for competitive and high quality MRO support will see them at the forefront of delivering this service.

The costs involved with introducing the model, and evaluating the necessary tooling required, means that any potential introduction of the LEAP engine into the facility would be 2020 at the earliest.”