Airbus boss admits long delays in making aircraft

Airbus, a leading global aircraft manufacturer, has recently announced that it has sold 139 jets at the Farnborough International Airshow. However, the company is facing significant challenges in meeting these orders on time. Guillaume Faury, the CEO of Airbus, acknowledged that there are 'bottlenecks' in the supply chain, stating, 'We have more demand than the ability to supply. ' This indicates that while many customers are eager to purchase aircraft, Airbus is struggling to produce them quickly enough. Mr. Faury made these remarks during the airshow, which is one of the largest gatherings of aviation professionals each year. Airbus has major facilities in the UK, particularly near Bristol and in Broughton, where thousands of employees work to design and manufacture various components of the aircraft. The airshow attracted a diverse group of attendees, including civilian airline representatives, military pilots, engineers showcasing the latest technology, and environmental advocates focused on making air travel more sustainable. The new British Prime Minister, Sir Keir Starmer, also made an appearance at the event, delivering a speech and engaging with Mr. Faury to discuss the significance of the aviation sector for the UK economy. Every Airbus aircraft is built with the expertise of around 3,000 engineers at the Filton facility, which is responsible for designing and testing critical components such as landing gear and fuel systems. The wings of the aircraft are then completed at the Broughton site, where an additional 6,000 workers contribute to the production process. Furthermore, numerous smaller companies play a vital role in the supply chain, providing essential parts and materials for Airbus. Among the notable orders placed at the airshow, Virgin Atlantic has committed to purchasing seven new long-haul jets, with a total value of approximately $800 million. Japan Airlines also made a significant order, acquiring 20 long-haul A350-900 jets and 11 single-aisle A321neo planes, amounting to just over $3 billion. In the aviation industry, these figures are substantial, but it is important to note that the market is primarily dominated by Airbus and Boeing, the two major players in the sector. Both companies often use airshows like Farnborough to announce their latest deals in a grand manner. The agreement with Virgin Atlantic was particularly noteworthy, as it was signed aboard a brand new A330 jet, which was adorned in Virgin's colors and named 'Ruby Rebel' in honor of the airline's founder, Sir Richard Branson. Despite the excitement surrounding the airshow, this year has been relatively quiet in terms of new orders compared to previous years. In 2018, prior to the pandemic, Airbus secured a total of 431 firm orders at the Farnborough Airshow. This year, however, the company has only received 139 orders. The primary reason for this decline is that selling aircraft has proven to be much easier than actually manufacturing them. Mr. Faury candidly admitted that many of their suppliers are often late in delivering crucial components. He explained, 'We have thousands of suppliers, and when you have just a couple of them that are late on the ramp-up, that’s slowing down everybody. ' Currently, Airbus has a backlog of 8,585 jets that have been ordered but not yet produced. To put this into perspective, last year Airbus manufactured and delivered 735 planes. If a customer orders one of the new A321 fuel-efficient jets, which cost around £90 million, they will have to wait until at least 2031 to take their first flight on it. Mr. Faury emphasized, 'We are focusing our efforts on those bottlenecks. ' While the sales teams are receiving a lot of attention during the airshow, it is the engineers and production managers at Airbus who are facing the most significant challenges. They are working diligently to accelerate the manufacturing process of these complex aircraft, relying on hundreds of specialized suppliers who are also grappling with their own issues. Mr. Faury mentioned, 'We are sending our own people to help, trying to anticipate the situation. And we have increased our buffer stocks to react to a crisis in the supply chain. ' The A321 'extra long range' single-aisle plane has gained popularity among airlines, and on the final day of the airshow, some aviation executives demonstrated their patience, allowing Airbus to conclude the event on a positive note. A low-cost Saudi airline named 'flynas' signed a provisional agreement to purchase 90 new aircraft, valued at around $12 billion. The CEO of flynas, Bander Almohanna, explained that the 75 A320neo aircraft he ordered possess 'exceptional efficiency,' which is crucial for a low-cost airline. The remaining 15 planes are the long-haul A330neo, which the airline believes will 'support our growth plans and Saudi Arabia’s pilgrim program. ' In Filton, just north of Bristol, approximately 4,000 individuals are employed by Airbus and its partner GKN, focusing on the design and production of wings. They will likely celebrate the news that Airbus has outperformed its main competitor, Boeing, by selling 21 more aircraft. However, this also means that in just four days at Farnborough, another 139 planes have been added to their already extensive 'to do' list.