🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

General Electric and Safran initiate legal proceedings against AOG Technics over alleged fake components

EditorRachael Rajan
Published 20/09/2023, 21:10
© Reuters.

Today, General Electric (NYSE:GE) Co. and Safran (EPA:SAF) SA initiated legal proceedings against AOG Technics Ltd., an aircraft parts provider implicated in a scandal involving fake components. This marks the first time this controversy has reached a courtroom.

AOG Technics, founded by Jose Zamora Yrala in 2015, is under scrutiny from the European Union Aviation Safety Agency for allegedly forging numerous certifications for parts it provided. Yrala has not responded since the scandal was first reported.

This scandal has prompted airlines and suppliers to urgently assess its implications, as dubious components have been found on various older single-aisle jets. These findings have led to part replacements, adding further strain to the already stressed spare-parts market.

The documentation that General Electric and Safran are seeking includes comprehensive details such as the identity of the part manufacturer and any entity that performed maintenance or repair services on these parts. This information is crucial for the ongoing investigation by the UK's Civil Aviation Authorities and will assist operators in deciding their next steps regarding the spare parts.

However, AOG Technics' lawyers argue that this request is excessively demanding and lacks adequate evidence to warrant the removal of all parts from the supply chain. They maintain that the UK's aviation regulator is already investigating the issue and that this demand goes beyond what is necessary for public safety considerations.

The situation is serious as some of the counterfeit parts are key components like engine blades, which could pose substantial safety risks if not identified and replaced. CFM International, a manufacturer of CFM56 engines for many older Airbus A320 and Boeing (NYSE:BA) 737 airliners—the most popular category in civil aviation—is particularly impacted by this problem.

While AOG has committed to preserving all documents and is actively cooperating with the Civil Aviation Authority, Safran has decided to withhold comments until after the London hearing concludes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.