INDUSTRY

Aircraft-makers lag behind rising demand for planes amid shipping, supply chain woes

Global shipping and supply chain disruptions are making it harder for corporate plane-makers and suppliers to meet resurgent demand for parts, according to industry executives and analysts. 


Disruptions, which are also hitting commercial aviation, are beginning to drive up costs and risk slowing down the aerospace industry’s recovery from the COVID-19 pandemic. 


With private aviation traffic surpassing 2019 levels this year, some corporate plane-makers and suppliers at a flagship business jet show in Las Vegas this week have flagged warning signs about supply chain and labour hiccups. 


Their comments add to recent concerns expressed by Airbus Chief Executive Guillaume Faury about mounting pressure on commercial aerospace’s supply chain. 


Aerospace has, so far, avoided the scale of supply woes faced by auto-makers and machinery companies as plane-makers Boeing and Airbus are producing fewer jets than before the pandemic. 


But supply chain strains are increasingly becoming visible for the production of narrow-body jets, which have seen a pick-up in demand due to a recovery in short-haul trips, notes Eric Bernardini, the global co-head of aerospace, defence and aviation of consultants AlixPartners. 


Easing travel restrictions and lure of private flights have led to an unexpected surge in business jet traffic, filling seats for private operators and expanding order backlogs for plane-makers, but straining supply of jets, parts and pilots. 


Planes produced by Cessna business jet producer Textron are flying around 20 per cent more than in 2019, putting pressure on suppliers to keep up with the need to deliver replacement parts. 


“We’re in a healthier position compared to what it could be, but we are starting to see some issues,” says Ron Draper, the chief executive of Textron Aviation. Mr Draper adds that Textron is managing the hiccups, but is still “seeing some suppliers pop up with capacity constraints”. 

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