Air France-KLM has filed a complaint against U.S.-based parts supplier Woodward with French competition authorities over alleged anti-competitive practices affecting engine part purchasing, an industry source said.
The group has lodged a complaint with France’s competition watchdog, the Autorité de la Concurrence, stating that Woodward is preventing Air France-KLM from pooling the purchase of engine parts across group airlines and its maintenance arm, the source said.
“Air France KLM Group confirms having recently filed a complaint before the French Competition Authority against one of the leading manufacturers of engine aircraft components Woodward, Inc for abusive practices in relation to the aircraft maintenance market (MRO) affecting interests of AFKLM customers,” a spokesperson for the group said.
“Woodward is cooperating with the French Competition Authority to correct some apparent misunderstandings or mischaracterizations of our activities and markets,” a Woodward spokesperson told Aviation Week. “We are not otherwise able to comment further on the details at present.”
According to the source, the complaint relates to engine parts purchasing in markets including France for the group’s three airlines—Air France, KLM and Transavia—as well as for its maintenance subsidiary Air France KLM Maintenance & Engineering.
A spokesperson for the Autorité de la Concurrence said the watchdog did not comment on complaints or whether they had been received.
The standard process after a competition complaint is received would be for the authority to file an initial notification of the complaint.
That would be followed by a dawn raid to gather information, with the timeline for any subsequent investigation varying depending on the circumstances of the case.
As part of broader supply chain issues that have affected the industry in recent years, airlines have been facing difficulties in sourcing components. This has led to aircraft being grounded for extended periods and in some cases, airlines needing to wet lease in replacements to ensure the necessary capacity to operate their schedules.
“This legal action is deemed necessary to restore and maintain a level playing field in the component MRO market to the benefit of the aviation industry and customers, ultimately passengers,” the Air France-KLM spokesperson said. “The group remains committed to ensure that the competitive landscape in which it operates is not hindered by an increasing number of malpractices by equipment manufacturers.”
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