Director of UK airline parts firm jailed over $9m fraud

The director of a London-based aviation parts supplier has been jailed after admitting to selling tens of thousands of fake aircraft engine parts in a fraud worth more than $9 million.

Jose Alejandro Zamora Yrala, who led AOG Technics, was sentenced to four years and eight months in prison on Monday after pleading guilty to fraudulent trading, according to Reuters.

Prosecutors said he falsified documents about the origin and condition of engine parts sold between 2019 and 2023.

More than 60,000 suspect components were pushed into the global aviation supply chain through the scheme, many linked to CFM56 engines used on Airbus and Boeing aircraft.

The discovery of the fraud in 2023 raised safety concerns across the industry and led to some planes put on a halt while checks were carried out.

Prosecutors said the company sold fake parts worth around $9.3 million - about 90 per cent of its revenue - contributing to an estimated $53 million in losses across the aviation sector.

American Airlines was among those affected which prosecutors said lost roughly $31 million due to engine repairs, replacement leasing and aircraft downtime.

Engine maker CFM International and its co-owners were also impacted.

GE Aerospace and Safran lost about $4 million and $780,000 respectively and suffered reputational damage, Reuters reported.