Safran Sees Recovery in Aerospace Supply Chain Amid Global Challenges

Olivier Andries, CEO of French aerospace major Safran, expresses optimism about improving global supply chain conditions, which have been severely affected due to geopolitical and pandemic-related disruptions. As supply constraints impact aircraft upgrades and deliveries, Andries emphasizes a gradual recovery is underway despite current material shortages and price shocks.

The global aerospace supply chain is showing signs of recovery despite ongoing challenges, according to Olivier Andries, CEO of French aerospace giant Safran. At a recent briefing, Andries highlighted the significant supply disruptions caused by Russia's invasion of Ukraine, which impacted essential raw materials like titanium, nickel, and aluminium.

Safran's operations span various sectors, including defense and space, manufacturing engines for commercial and military aircraft. In India, a key market for the company, Safran is expanding its capabilities by setting up a new Maintenance, Repair and Overhaul (MRO) facility for LEAP engines in Hyderabad, scheduled to be operational next year.

Despite the positive outlook shared by Andries, a study by IATA and Oliver Wyman forecasts a hefty $11 billion cost for the global airlines industry by 2025, driven by slow production, excess fuel expenses, and other supply chain-related issues. This highlights the ongoing struggle within the aviation industry as it navigates through existing obstacles to recovery.

(With inputs from agencies.)