Airbus Charts a Course Through Supply Chain Turbulence

Airbus is actively working to address supply chain bottlenecks that have delayed aircraft deliveries and increased costs. The company is evaluating its suppliers' issues, particularly post-COVID disruptions, and is committed to boosting production levels. Watchtowers are being used to assess and aid suppliers in need.

Airbus finds itself navigating through significant supply chain challenges, exacerbated by geopolitics and lingering effects of the COVID-19 pandemic. These issues have caused delays in aircraft deliveries and maintenance schedules, and have resulted in part shortages, just as airlines aim to expand in response to rising air traffic demand.

Anand Stanley, Airbus Asia Pacific President, acknowledged these difficulties. He stated that supply disruptions caused by the pandemic remain a concern. However, Stanley expressed optimism, noting that improvements are visible at all supply chain levels, and Airbus is committed to ramping up aircraft production by 2025.

In a proactive approach, Airbus has deployed 'watchtowers' to assess supplier performance and provide support where necessary. This initiative follows a study by IATA and Oliver Wyman, predicting over $11 billion in losses to the airline industry this year alone due to supply chain hiccups, emphasizing the urgent need for solutions.

(With inputs from agencies.)