Guillaume Faury, CEO of Airbus, recently admitted to substantial production delays at the Farnborough International Airshow. These delays are primarily due to supply chain issues.
Despite increasing demand for Airbus aircraft, the company struggles to keep up due to setbacks from key suppliers. “We have more demand than the ability to supply,” Faury revealed.
Production Delays Acknowledged
Airbus is facing significant production delays due to supply chain issues. Guillaume Faury, the company’s CEO, stated these challenges at the Farnborough International Airshow.
Faury admitted that demand is outstripping their ability to supply. This problem is due to delays from key suppliers. “We have more demand than the ability to supply,” he said.
At the airshow, Faury highlighted the crucial role of aviation in the UK, attended by the new Prime Minister Sir Keir Starmer.
Impact of Delays
Airbus has substantial operations in the UK, including Filton and Broughton. Despite the delays, Airbus’s sales team managed to secure significant orders at Farnborough.
Virgin Atlantic purchased seven new widebody A330 aircraft, valued at around $800 million (£620 million). Meanwhile, Japan Airlines ordered 20 long-haul A350-900 jets and 11 single-aisle A321neo planes worth over $3 billion (£2.3 billion).
Faury explained that the backlog of 8,585 jets means new orders will not be fulfilled until at least 2031. “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,” he said.
Sales Amidst Challenges
Despite the production challenges, Airbus secured a significant order for 90 aircraft from flynas at the Farnborough International Airshow.
This provisional deal is worth approximately $12 billion and includes 75 A320neo aircraft and 15 A330neo planes. These planes are known for their efficiency and will support flynas’s growth.
Employees in Filton and Broughton cheered Airbus’s success. However, this also means an additional 139 planes have been added to their production backlog.
Strategies to Address Issues
Airbus is taking steps to address these delays by sending their own staff to support suppliers.
They are also increasing buffer stocks to mitigate supply chain disruptions. This approach aims to ensure more timely production.
Orders and Backlog
Airbus’s 139 orders at Farnborough pale in comparison to the 431 firm orders and commitments from the 2018 show.
The aviation industry is dominated by Airbus and Boeing, which operate on a different scale.
The backlog of 8,585 jets means new orders will not be fulfilled until at least 2031.
Role of Key Locations
In Filton, around 4,000 employees design wings, landing gear, and fuel systems.
Meanwhile, 6,000 employees in Broughton assemble the wings. Thousands more work within the supply chain.
Future Prospects
Despite the challenges, Airbus ended the airshow on a high note with the flynas deal.
The additional aircraft will support the airline’s growth and Saudi Arabia’s pilgrim programme.
In summary, Airbus is facing substantial production delays due to supply chain issues, acknowledged by CEO Guillaume Faury.
Despite the challenges, Airbus remains optimistic, securing significant orders and implementing strategies to mitigate delays.
The company’s proactive measures underscore its commitment to addressing these issues and meeting growing demand.