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GE and Safran Discover 126 Jet Engines Containing Counterfeit Parts

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GE and Safran Discover 126 Jet Engines Containing Counterfeit Parts

General Electric Co. (GE) and Safran SA have uncovered a significant number of jet engines fitted with parts sold by a UK distributor, AOG Technics Ltd., that had falsified airworthiness records. The partners in CFM International Inc., GE and Safran's joint venture, have identified 126 engines containing these counterfeit parts, an increase from the previously discovered 96 engines. Additionally, 95 falsified documents related to the parts have been identified. The scandal involving uncertified components is spreading throughout the industry, with more airlines reporting suspected unapproved parts on their aircraft. The global nature of the problem and the effort required to address it are becoming evident as incidents are reported from various countries, including Portugal, the US, and Australia.

Impact on CFM International Inc.

CFM, as the world's largest manufacturer of jet engines, is working to determine the origin of the counterfeit parts and the purchasers involved. The company has found instances where AOG-supplied parts were used in its own repair shops, highlighting the need for a thorough review of its supplier network. CFM plans to evaluate its supplier evaluation processes in light of these findings.

Operational Issues and Required Removal

CFM has stated that it is not aware of any operational issues resulting from the suspect parts. The majority of the affected parts are non-serialized items such as bolts, nuts, washers, dampers, seals, and bushings. While the number of engines fitted with AOG parts in CFM's repair shops is relatively small compared to the total number of engines in service globally, it emphasizes the importance of ensuring the integrity of the supply chain.
Industry-Wide Response
Airlines, CFM, and other industry players are actively working to identify and remove the counterfeit parts from their aircraft. Major carriers, including Delta Air Lines, Southwest Airlines, and United Airlines, have reported similar discoveries of components from AOG on their planes. Regulators in Europe and the US have confirmed that AOG sold parts with falsified airworthiness records for widely used jet engines. In conclusion, the discovery of 126 jet engines containing counterfeit parts sold by AOG Technics Ltd. highlights the need for stringent supply chain management and the importance of ensuring the authenticity of aircraft components. The industry's response to this scandal underscores the commitment to maintaining safety and airworthiness standards in the aviation sector.

Hot Take: The Impact of Counterfeit Parts on New Businesses

The discovery of counterfeit parts in 126 jet engines by GE and Safran SA provides a stark reminder of the potential pitfalls that can occur in a global supply chain. For new businesses, this serves as a cautionary tale about the importance of rigorous supplier evaluation and the need for stringent supply chain management.

Supplier Evaluation

The fact that CFM, the world's largest manufacturer of jet engines, found counterfeit parts from AOG Technics Ltd. in its own repair shops, underscores the need for thorough supplier evaluation. New businesses must ensure they have robust processes in place to vet suppliers and verify the authenticity of their products.

Supply Chain Integrity

The global spread of this scandal, with incidents reported from Portugal to the US and Australia, highlights the complexity of modern supply chains. For new businesses, maintaining the integrity of their supply chain, even in the face of such complexity, is crucial to their reputation and success.
Industry Response
The proactive response by airlines and industry players to identify and remove the counterfeit parts is commendable. It serves as a model for new businesses on how to respond to crises swiftly and effectively. In conclusion, this scandal underscores the importance of rigorous supplier evaluation, supply chain integrity, and effective crisis management for new businesses. These are key factors in ensuring the safety and quality of their products and services.
Story First Published at: https://financialpost.com/pmn/business-pmn/ge-safran-identify-126-jet-engines-that-contain-fake-parts
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