Airlines urge more competition on used jet engine parts

COPENHAGEN, Sept 13 (Reuters) - Global airlines have called on jet engine makers to make it easier for independent firms to provide reconditioned parts to airlines following a European settlement involving turboprops.

The call by the International Air Transport Association, which represents about 300 airlines, is the latest sign of a months-long tussle over engine competition and parts shortages.

Last month, the European Commission closed an antitrust investigation into alleged anti-competitive behaviour by Pratt & Whitney Canada, the world's main turboprop engine maker, after it agreed to lift restrictions affecting used parts.

The move means independent suppliers will find it easier to get access to dismantled turboprop engines that can then be stripped for parts to be restored and sold in competition with new ones, after meeting certification standards.

Until now, contractual clauses restricted the supply of engine sections needed to harvest used parts but Pratt & Whitney Canada has agreed to modify these, the Commission said.

"That is certainly going to help the ATR and Dash-8 (turboprop aircraft) operators," Nick Careen, IATA’s senior vice-President operations, safety and security, said.  

"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," he told Reuters in a telephone interview.

Pratt & Whitney Canada has welcomed last month's agreement with the European Commission. Parent company RTX had no immediate comment.

Airlines regularly accuse engine makers of restricting competition and raising prices, compounding widespread shortages of engine parts and labour ever since the COVID-19 pandemic.

Engine makers argue they take huge technology and financial risks to develop each generation of engines and need to recoup their investments over time to keep innovation on course.

The extent to which engine makers allow outside shops to participate in the aftermarket varies by manufacturer.

The debate over the availability of used parts also affects a three-way battle over engine supplies that has been one of the industry's biggest headaches this year.

Repairing more used parts for existing fleets can ease pressure by freeing up more brand-new ones for new aircraft.

IATA has estimated that shortages of engine parts and maintenance capacity cost airlines almost $6 billion last year.

Aviation executives at a conference of the International Society of Transport Aircraft Trading in Copenhagen on Monday said they expect engine delays to continue for some time.

"It is going to take a long time before this issue is resolved – who knows, a few years," said Jennifer Moulton, global head of sales at Dubai Aerospace Enterprise.

Pratt & Whitney said in July that engine maintenance disruption was easing.

Earlier this year, IATA extended an agreement with Pratt's competitor, French-U.S. engine maker CFM International, to uphold competition in the aftermarket.

(Reporting by Tim Hepher; Editing by Susan Fenton)