Airbus CEO Guillaume Faury expressed a cautiously optimistic outlook on the supply chain issues with CFM International, the engine maker for many of Airbus's aircraft. Speaking at a Reuters event in Brussels, Faury indicated that while the situation remains "very tight," he believes CFM should be able to supply enough units to support Airbus's end-of-year delivery targets, an improvement over previous statements where engine supply had been a major bottleneck.
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CFM International, a joint venture between GE Aerospace and Safran, has been grappling with production challenges, particularly with the LEAP engines that power Airbus's best-selling A320neo family and Boeing's 737 MAX. These issues have led Airbus to lower its delivery expectations earlier in the year, with Faury previously describing the engine supply as a critical path element for Airbus's production schedule.
The conversation around supply chain woes has been a significant concern for Airbus, which had to adjust its 2024 delivery target from 800 to around 770 jets due to these and other supply chain problems. However, Faury's recent remarks suggest that negotiations and improvements behind the scenes might be paving the way for a more stable supply chain scenario in the near future. He acknowledged the complexity, stating that the supply situation "should be ok; I don't know yet," highlighting the narrow margin for error in meeting delivery commitments.
Faury's comments come at a critical time when Airbus faces the challenge of delivering around 200 jets in the last two months of the year to meet its revised goal. His tone was more conciliatory compared to earlier in the year when he mentioned being "blind-sided" by CFM's delivery issues. This shift in rhetoric might reflect recent efforts to resolve these challenges, potentially involving better coordination with suppliers or an uptick in production capacity at CFM. While Faury remains cautious, his more positive outlook could signal a turning point for Airbus and CFM relations, crucial for both companies to stabilize their operations. It also reflects the broader aviation industry's efforts to recover and streamline operations post-pandemic, where supply chain resilience has become pivotal for maintaining competitive edge and customer satisfaction.