One interesting takeaway from the Farnborough Air Show was the admission of Airbus CEO Guillaume Faury of falling behind on aircraft orders.
In the context of global supply chain issues, he spoke out on this aspect at the airshow which concluded on Friday.
Without further ado, let’s get into it…
Airbus CEO Guillaume Faury & His Admission on Aircraft Orders…
With a backlog of over 8,500 aircraft, Airbus CEO Guillaume Faury is beginning to feel the pressure of fulfilling that due to the pressures in the supply chain.
Via a BBC report, he said the following on this:
“We have thousands of suppliers, and when you have just a couple of them that are late on the ramp-up, that’s slowing down everybody.”
“We are focussing our efforts on those bottlenecks”.
“We are sending our own people, trying to provide help, anticipate the situation.”
“And we have increased our buffer stocks to react to a crisis in the supply chain.”
As the report rightly notes, if you order any of the A320 Family aircraft, the delivery date will be 2031.
Adding another 138 aircraft to the backlog will also add to that pressure, which may have contributed to the next point below.
Could This Have Been A Factor on Low Orders Industry-Wide at the Airshow?
Compared to the Paris Air Show last year, the Farnborough Air Show this week has been quiet for orders.
Furthermore, over 1,100 aircraft were sold in Le Bourget compared to the over 250 at FIA.
So, with this in mind, are supply chain issues causing airlines to think twice about aircraft orders?
It is definitely a contributory factor, but there is one other aspect to consider with this.
A lot of airlines globally already have a lot of airplanes on order, that will take them into the 2030s.
But delivery slots are something that airlines are also willing to pay a higher buck for.
They are becoming very limited for the rest of this decade, so airlines have to act proactively and cautiously at the same time.
It will be interesting to see how this supply chain dynamic plays out in the years ahead, that’s for sure.
Overall…
In conclusion, the aviation industry is heading into a difficult place when it comes to supply chain issues, as Airbus CEO notes about delays to aircraft deliveries.
Manufacturers are wanting to increase their output, but global conditions aren’t allowing it.
If factors weren’t so intense, then production rates could increase happily within the sector.
Looking ahead, all eyes will be on how much further this issue will develop and whether it can be controlled.
If the industry doesn’t get it under control, then it will get worse and worse and worse.
And that won’t just be bad for the manufacturers: It will be bad for the airlines too, and will stunt their growth.
For now, fate is in the hands of the supply chain to see if improvements can be seen.
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