Aviation

Airbus Alters Production Schedule Due to Engine Supply Difficulties

In a significant development for Airbus, the aerospace giant has announced adjustments to its 2024 delivery targets and production timelines, citing severe disruptions in engine supplies as a primary cause.

Airbus lowered its 2024 delivery target

Originally aiming to deliver approximately 800 airplanes in 2024, Airbus has revised this figure downwards to around 770 aircraft. This reduction follows ongoing challenges in its supply chain, exacerbated by lingering pandemic impacts and heightened parts shortages.

Airbus CEO Guillaume Faury acknowledged the headwinds faced by the company, stressing the necessity to address these issues directly. “We are facing headwinds right now; we have to bite the bullet,” Faury remarked during a briefing with analysts.

The revised projections also include a delay in achieving a production rate of 75 narrow-body A320-family jets per month, now pushed back to 2027 from the initially planned 2026. The root of these setbacks lies partly in critical engine shortages affecting Airbus’s popular A320neo family, a direct competitor to Boeing’s 737 MAX.

Faces increased parts shortages and output delays.

Faury highlighted that engine supplies for wide-bodied jets, particularly the A330neo, have also experienced delays, albeit without impacting the A350 production timeline.

To mitigate these challenges, Airbus is reportedly in discussions with Spirit AeroSystems Holdings Inc. to potentially acquire portions of its aerospace business, aiming to bolster its supply chain resilience. Despite these strategic adjustments, Airbus remains steadfast in fulfilling its long-term order commitments, boasting a sold-out production schedule through the end of the decade.

The industry-wide struggle to stabilize supply chains post-pandemic has further compounded Airbus’s operational hurdles. Issues ranging from labor shortages to financial instability among suppliers continue to strain production capacities across the aviation sector.

Aviation

Airbus and French Aerospace Firms Growing Exports from India

In a significant move to bolster its supply chain, European aerospace giant Airbus has announced plans to ramp up component sourcing from India, tapping into the country’s vast opportunities.

During a press briefing in New Delhi on October 7, CEO Guillaume Faury emphasized the strategic importance of India within the Airbus supply chain, highlighting the company’s robust network of over 100 suppliers in the region.

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Faury, who also serves as Chairman of the French Aerospace Industries Association (GIFAS), noted that there are abundant prospects for collaboration between Indian and French aerospace companies. Leading a high-level delegation from GIFAS, comprising more than 60 companies and over 100 representatives, Faury aims to foster deeper partnerships and enhance business opportunities between India and France.

“We will continue to grow our sourcing of components,” Faury stated, forecasting a doubling of component sourcing approximately every five years over the next decade. This stable growth trajectory underscores Airbus’s commitment to deepening its ties with India.

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Currently, Airbus holds an impressive order book of around 8,600 aircraft and anticipates producing about 770 planes this year. This ambitious production plan aligns with the expected surge in India’s domestic air passenger traffic, projected to reach 300 million by 2030, according to Union Aviation Minister K Rammohan Naidu.

During the briefing, Naidu also highlighted the substantial investments being made to develop India’s airport infrastructure, with $11 billion allocated for this purpose. The government plans to develop 200 additional airports over the next 20 to 25 years, significantly expanding the current count of 157 airports, heliports, and waterdromes. By the end of 2025, the number of operational airports is expected to reach 200.

“The potential for partnership between India and France is immense,” Naidu remarked, further reinforcing the collaborative spirit that Airbus and French aerospace firms seek to cultivate in India.