Dassault Aviation has released its financial report for the first half of 2023. The challenging supply chain environment and ongoing Ukraine conflict remain key influencing factors, with the manufacturer maintaining its prediction of a decrease in net sales compared to 2022.
Supply chain challenges
One of the pivotal factors influencing Dassault Aviation’s performance is the challenging supply chain environment. Despite its efforts, the company has predicted a decrease in net sales compared to the previous year.
This decrease can be attributed to the lingering impact of supply chain issues that have been exacerbated since 2022. The company is diligently working to mitigate the negative consequences of these challenges by closely monitoring its suppliers’ production.
Business jet market
In the business jet market, the post-Covid upturn in growth witnessed in 2022 began to ease off in the last quarter of 2022, a slowdown that continued in the 1st half of this year
The global context, marked by the war in Ukraine and associated instability, continues to cast a shadow over the aviation industry. In the business jet market, the post-Covid growth witnessed in 2022 showed signs of slowing down in the last quarter of the same year.
This slowdown persisted into the first half of 2023, presenting both opportunities and hurdles for Dassault Aviation.
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Rafale Fighter’s success
The success of Dassault Aviation’s Rafale fighter aircraft continues to pave the way for new export opportunities.
The recent announcement by the Indian Government, selecting the Navy Rafale for their Indian Navy’s latest generation fighter, stands as a testament to the aircraft’s excellence and capability.
India’s decision to operate both Navy and Air Force versions of the Rafale further solidifies the strategic relationship between India and France.
Strategic moves in France
In France, Dassault Aviation is involved in several significant projects, including the Military Programming Law (“LPM”), which encompasses the acquisition of the 5th batch of Rafale aircraft.
This batch includes 42 aircraft, with 20 set to be delivered between 2027 and 2030, substantially bolstering the French Air and Space Force’s fleet.
Additionally, the development of new aircraft and the activation of options for Falcon models underscore Dassault Aviation’s commitment to innovation and growth.
Focus on environmental sustainability
The Group places significant emphasis on environmental sustainability, actively working to reduce the carbon impact of its industrial processes and aircraft.
Utilizing Sustainable Aviation Fuels (SAF) and implementing energy-saving measures are among the strategies employed to achieve carbon neutrality.
Dassault Aviation’s ambition to lead the aviation industry in carbon neutrality is evident in its commitment to develop aircraft compatible with SAF and its efforts to decarbonize its operations.
Recruitment
Amidst a tight job market, Dassault Aviation maintains an ambitious recruitment policy, aiming to hire 1,400 individuals, with a major focus on the parent company.
The Group’s commitment to shared values is reflected in salary increases and profit-sharing initiatives, further fostering a positive work environment.
Military sector progress and FCAS development
The military sector is witnessing steady progress, with the delivery of Rafale aircraft to both France and export customers. Work on the F4 standard is underway, and negotiations for future developments are actively pursued.
Additionally, Dassault Aviation’s involvement as the lead contractor for the New Generation Fighter demonstrator (FCAS) demonstrates the company’s dedication to advancing military aviation capabilities.
Advancements in civil sector
In the civil sector, Dassault Aviation recorded both orders and deliveries of its Falcon aircraft. The Falcon 6X, which completed its test flights, generated significant interest at industry events, and certification is eagerly awaited.
Development of the Falcon 10X is ongoing, with detailed technical specifications already completed and manufacturing processes underway.
“In a challenging supply chain environment, our 2023 guidance remains unchanged: delivery of 15 Rafale and 35 Falcon (including Falcon 6X); decrease in net sales compared with last year,” concludes Éric TRAPPIER, Chairman and Chief Executive Officer of Dassault Aviation.
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