IATA Welcomes P&WC Reforms to Expand Airline Choice in Turboprop Aftermarket

The International Air Transport Association (IATA) has welcomed changes introduced by Pratt & Whitney Canada (P&WC) to its contractual terms, saying the move will improve competition and give airlines greater choice in the market for used engine parts.

The changes follow competition concerns raised over contractual provisions affecting access to used engine material and related services within P&WC’s maintenance network.

According to IATA, the revised terms remove restrictions that could have prevented maintenance shops within P&WC’s network from providing independent suppliers with access to used engine material and associated services.

The changes apply specifically to used parts for P&WC’s PT6 and PW100-series turboprop engines.

However, IATA noted that the development does not extend to Pratt & Whitney’s larger commercial jet engines and does not address the use of regulator-approved alternative parts and repairs across the wider engine aftermarket.

Welcoming the development, IATA Senior Vice President, Operations, Safety and Security, Nick Careen, said the intervention by the European Commission Directorate-General for Competition had prompted changes that would introduce greater competition and choice into part of the turboprop engine aftermarket.

“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,” Careen said.

He, however, stressed that the principles behind the intervention should be applied more broadly across the aviation engine aftermarket.

“But critically, the principles of fair access, competition and customer choice should apply across the entire engine aftermarket,” he said.

Careen argued that airlines should not be constrained in selecting maintenance providers or sourcing parts and repairs when those options have received regulatory approval.

“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,” he said.

According to him, expanding access to approved maintenance providers, parts and repair options could provide an immediate response to some of the supply chain difficulties currently confronting airlines.

He said such measures could help ease parts shortages and limitations in maintenance capacity, challenges that have contributed to rising operating costs and left some aircraft grounded.

“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,” Careen said.

He added that the aviation industry would also benefit from greater competition over the longer term because of the efficiencies it could generate in the engine aftermarket.

“And in the long term, the sector needs the efficiencies that more competition can bring to the engine aftermarket,” he said.

The issue comes at a time when airlines worldwide continue to contend with significant aircraft supply chain challenges, including shortages of spare parts, delays in obtaining components and inadequate maintenance capacity.

IATA said the scale of the problem is substantial, pointing to an IATA-Oliver Wyman study which estimated that supply chain constraints added about $5.7 billion to airlines’ engine leasing and maintenance costs in 2025.

The association said greater competition, together with increased access to alternative sources of parts and repairs, could help reduce some of the financial and operational pressures created by the supply chain crisis.

The latest development follows wider efforts by IATA to promote competition in the aircraft engine aftermarket and expand airlines’ access to maintenance and repair options.

IATA said the outcome of the European Commission Directorate-General for Competition’s investigation into P&WC adds to progress achieved earlier in the year through the renewal of its agreement with CFM International on aftermarket practices.

The agreement with CFM International is aimed at enhancing competition across the company’s commercial engine portfolio.

Among its objectives is to increase the number of maintenance options available to airlines by enabling independent maintenance providers to compete more effectively.

The agreement also supports the use of parts and repair options that have been approved by aviation regulators, providing airlines with greater flexibility in managing engine maintenance.

IATA said the combination of these developments could contribute to a more competitive and resilient engine aftermarket, particularly as airlines continue to deal with aircraft delivery delays, parts shortages and constraints on maintenance, repair and overhaul capacity.

The association’s position is that airlines should be able to select from all technically and regulator-approved options rather than being limited by contractual arrangements that restrict access to independent maintenance providers or alternative approved parts.

For airlines, greater competition in the engine aftermarket could translate into more maintenance choices, potentially lower costs and improved access to components at a time when aircraft availability remains a major concern for carriers.

The P&WC changes therefore represent a significant development for operators of PT6 and PW100-series turboprop engines, although IATA stressed that broader competition principles still need to be addressed across the entire engine aftermarket.