Safran CEO Calls for Tougher Regulation After Fake Aircraft Parts Scandal

Safran SA Chief Executive Officer Olivier Andries demanded regulators in Europe and the US crack down harder on rogue aircraft parts dealers, as he reacted to the scandal of falsified component records that have led to fake parts ending up on Safran-built engines.

(Bloomberg) — Safran SA Chief Executive Officer Olivier Andries demanded regulators in Europe and the US crack down harder on rogue aircraft parts dealers, as he reacted to the scandal of falsified component records that have led to fake parts ending up on Safran-built engines.

The European Union Aviation Safety Agency and the US Federal Aviation Administration should introduce more regulation to rein in middle men in the supply chain, Andries said in an interview in Meaux, outside Paris. Regulators might also consider bringing in digitalization and blockchain technology to increase traceability and eliminate paper-based documentation, Andries said. 

“The fact that this company was able to establish itself, to prosper and to sell parts with falsified certification documents raises questions,” Andries said referring to AOG Technics Ltd. which has been accused of selling jet engine parts with forged certification documents. 

Bloomberg News first reported on the suspect parts on Aug. 31 which has triggered a race to identify and remove suspect parts on aircraft at multiple airlines spanning from the US to Australia. 

EASA has previously said that suppliers are not regulated and therefore has no power to investigate AOG Technics. 

Read More: Airlines Are Racing to Hunt Down the Fake Parts in Their Fleets

Andries is adding to calls for tighter regulation in recent weeks, as the size of the scam has been unveiled. GA Telesis, one of the world’s largest parts distributors, has urged lawmakers in Washington to convene a hearing about unapproved parts in aviation, in the hope that Congress will push the FAA to impose some form of regulation on companies like his.

“We clearly expect more scrutiny on this part of the value chain from authorities – both FAA and EASA – to understand root causes and remediate them,” said Pascal Fabre, a managing director at AlixPartners in Paris. 

CFM, the jet engine joint venture between Safran and General Electric Co, has been trying to pinpoint the origin of the parts and who purchased them. Last month, it asked a UK court to force AOG to hand over documents relating to “every single sale of products.” 

GE and Safran are still sifting through additional records provided by AOG this month. More forged records and affected engines may still be uncovered.

Andries declined to comment on possible further legal action against AOG and its founder, Jose Alejandro Zamora Yrala. Zamora has declined to comment on the case. 

 

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