The aviation industry is grappling with persistent supply chain disruptions that are expected to continue through 2025, according to leading figures in the sector. Andy Cronin, chief executive of leasing giant Avolon, told Reuters that while aircraft production issues are being addressed, supply chain problems will remain a significant challenge for the next two years.
This sentiment was echoed by Russell Stokes, head of commercial engines and services at GE Aerospace, who stated that the current environment is “still a challenged environment for this year and probably next year.” He highlighted ongoing material supply bottlenecks affecting GE’s parts and services businesses.
The persistent supply chain woes are causing significant headaches for airlines and manufacturers alike. Not only are manufacturers struggling to ramp up aircraft production due to a shortage of parts, but in-service aircraft are also spending longer in maintenance due to these issues. GE Aerospace, a key supplier of engines for Boeing, acknowledges the challenges but remains confident that the situation will eventually improve.
The COVID-19 pandemic has been identified as a major contributing factor to the current supply chain disruptions. Mass layoffs during the pandemic downturn led to a shortage of skilled workers, which is now hindering production and maintenance efforts. GE Aerospace has deployed engineers to work on-site with suppliers and is exploring the use of artificial intelligence to mitigate these challenges.
Airbus, one of the industry’s leading aircraft manufacturers, has also been significantly impacted by supply chain issues. The company recently cut its earnings and aircraft delivery goals for the year, citing persistent shortages of vital components. Airbus CEO Guillaume Faury acknowledged that the situation is not improving and warned that economic and geopolitical challenges are contributing to the problem.
Air France-KLM has also expressed concerns about the ongoing supply chain bottlenecks, which are causing lengthy delays and the delivery of products with malfunctioning or missing parts. The airline group has been forced to double its number of backup aircraft and rely on wet-lease agreements to mitigate the impact of these issues.
The supply chain disruptions are not limited to aircraft and engine manufacturers. Air France-KLM has also called on Paris Aéroport, which operates Paris Charles de Gaulle Airport, to improve the airport’s infrastructure, citing a shortage of jetways and contact gates as a major bottleneck.
Overall, the aviation industry is facing a protracted period of supply chain challenges that are expected to persist for several years. While companies are taking steps to address these issues, the situation remains fluid and uncertain. The industry will need to adapt and innovate to overcome these obstacles and ensure a sustainable future.
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