Airbus getting better at managing supply chain disruptions, senior executive says

By Ben Blanchard

TAOYUAN, Taiwan (Reuters) – Disruptions to the supply chain that are delaying aircraft deliveries are lessening and Airbus is getting much better at managing it, a senior company executive said on Monday.

The European planemaker, which delivered 766 jets last year, roughly in line with its target, has been facing industrial delays due partly to problems in the aerospace supply chain, which have also hampered the recovery of embattled U.S. rival Boeing.

Speaking to reporters in Taiwan, Airbus commercial aircraft executive vice president of sales Benoit de Saint-Exupery said it is taking a long time for the supply chain to get back on track, with a lot of disruptions in many suppliers.

“We think that those disruptions are going to continue a little bit longer unfortunately but we have a much better handle (on it) and we are managing that supply chain with much more anticipation than before thanks to the learning we had during the pandemic,” he said.

“I view it as getting better but it will take a bit longer before it comes back to where it was before the pandemic.”Right now the main bottlenecks are engines, he said, speaking at a hotel at Taiwan’s main international airport in Taoyuan.

“We’re not getting the engines that we need to deliver the aircraft.”

De Saint-Exupery was in Taiwan to sign an order with the island’s larger carrier China Airlines for 10 Airbus A350-1000s.

In December, China Airlines said it would split an order for its long-haul fleet renewal between Boeing and Airbus and buy freighters from the U.S. planemaker in a closely watched deal worth almost $12 billion.

China Airlines said it would buy 10 Boeing 777-9 aircraft and 10 Airbus A350-1000s as well as four 777-8 freighter aircraft for $11.9 billion at list prices, with deliveries for the new aircraft starting from 2029.

“We were competing for the entire order but we knew it was going to be difficult,” de Saint-Exupery told Reuters. “The airline is a (Boeing) 777-300 operator so their decision has some sense.”

China Airlines Chairman Kao Shing-hwang said the new A350s, which will complement its existing fleet of 15 the smaller A350-900 model, would enable the carrier to add capacity on popular long haul destinations like New York and London, adding passenger and freight demand were both strong at present.

“I believe we’ll get a great report card for both passengers and freight” this year, Kao added.

(Reporting by Ben Blanchard; editing by David Evans)