Alok Kejriwal Airbus CEO Guillaume Faury has expressed cautiously optimistic remarks regarding engine deliveries that have previously hampered the company’s jet production. While acknowledging the tight timeline, Faury believes that CFM International, a joint venture between GE Aerospace and Safran, should be able to provide enough engines to meet Airbus’s 2024 delivery goals.
Previously, a shortfall in engine deliveries from CFM, the world’s largest engine maker by unit sales, was blamed for sluggish Airbus jet deliveries and contributed to a cut in annual targets in July. This shortfall posed a significant hurdle for Airbus, which needs to deliver around 200 jets in the remaining two months of the year to reach its target of “around” 770 jets. Some analysts have expressed skepticism about Airbus achieving this goal.
Responding to a query regarding CFM’s ability to supply enough engines to support Airbus’s year-end goals, Faury stated, “In the short term it is very tight … I will only know for sure at the end of November.” He emphasized that ideally, engine deliveries should be sufficient, with any potential shortfall being minimal. (“It should be ok; I don’t know yet. It will be within a few engines – not tens of engines – if any.”)
While carefully worded, Faury’s comments suggest a more relaxed stance on engine supplies compared to the concerns expressed earlier this summer. Industry sources believe these improved prospects stem from behind-the-scenes negotiations regarding engine allocations. Notably, CFM is one of only two engine suppliers for Airbus’s best-selling A320neo family aircraft, the other being Pratt & Whitney (a unit of RTX). CFM also serves as the sole engine supplier for Boeing’s 737 MAX aircraft.
In July, Faury had expressed disappointment at being “blind-sided” by CFM. However, during his recent interview, he adopted a more conciliatory tone, acknowledging the additional challenges posed by recent U.S. hurricane damage on top of existing industrial hurdles. He commended CFM, stating, “They (CFM) are serving us reasonably well given those circumstances.”
Analysts caution that while Faury’s comments offer a glimpse into Airbus’s current confidence level, supply chain issues remain unpredictable. Potential delays in other aircraft parts could still disrupt delivery schedules. As of October, Airbus has delivered 62 jets, bringing the total for the first ten months of the year to 559.
If the situation does not significantly improve by the end of November, some analysts predict another potential downward revision of Airbus’s delivery targets. The company is expected to leverage the flexibility in its target wording to potentially justify deliveries as low as 750 without formally revising the target.
Airbus, currently the leading producer compared to its slowly recovering U.S. rival Boeing, is banking on a last-minute surge in deliveries this year. However, this goal is complicated by a supply chain weakened by factors like the pandemic and ongoing labor and parts shortages.
