Safran CEO Olivier Andries announced on Friday that the global aerospace supply chains are expected to continue facing challenges throughout 2024. He highlighted that issues with the supply chain are yet to be resolved and will likely persist until 2024, during his address to the AJPAE French Aerospace media association.
.gif)
Safran, in collaboration with General Electric, manufactures the widely utilized LEAP engine for medium-haul jetliners and is also a leading supplier of various other aeronautical equipment. Andries pointed out that the pressure is particularly high on titanium and steel supplies, which is leading to inflation in the sector.
Andries also mentioned issues with castings and forgings but noted that the recent global shortage of computer chips has significantly improved. He acknowledged recruitment challenges due to a surge of early retirements during the pandemic. He stated that these supply chain shortages have made it difficult to ramp up airliner production.
Andries confirmed that CFM is in complete agreement with manufacturers regarding production plans until the end of 2024, but discussions about engine supplies for 2025 are still ongoing. CFM is the exclusive engine supplier for the Boeing 737 and holds a 60% share of the backlog for the Airbus A320, where airlines have the option to select engines from either CFM or Pratt & Whitney.