The International Air Transport Association (IATA) has welcomed changes made by Pratt & Whitney Canada (P&WC) to contractual terms that had raised competition concerns in the market for used engine parts. The modifications follow work carried out by the European Commission Directorate-General for Competition.
The revised contractual terms remove restrictions on maintenance shops within P&WC's network that could have limited independent suppliers' access to used engine materials and associated services. However, these adjustments are limited strictly 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.
Nick Careen, IATA’s Senior Vice President Operations, Safety and Security, stated that while the European Commission's work brought more competition and choice to part of the turboprop engine aftermarket, principles of fair access, competition, and customer choice should apply across the entire engine aftermarket. Careen emphasized that airlines should have the freedom to choose among all regulator-approved maintenance facilities, parts, and repairs, which could help alleviate supply shortages and maintenance constraints.
Supply chain constraints continue to exert heavy financial pressures on the global airline industry. According to a joint study by IATA and Oliver Wyman, supply chain disruptions added approximately $5.7 billion to airlines' engine leasing and maintenance costs in 2025. IATA noted that broader competition and additional options for parts and repairs are key measures to help ease these pressures.
The outcome of the European Commission's probe into P&WC adds to benefits gained earlier in 2026 through the renewal of IATA's agreement with CFM International regarding engine aftermarket practices. That agreement enhances competition across CFM's commercial engine portfolio by enabling independent maintenance providers to compete and supporting the use of all regulator-approved parts and repair options.
