Engine Supplier Tensions Delay Airbus Production Plans

5 months ago Editor

Engine supplier CFM’s reluctance to increase output for Airbus amid pressures from Boeing has led to delays in Airbus’s planned production increases for its narrowbody jets.

Engine maker CFM’s hesitance to significantly increase supply to Airbus, amid ongoing pressures from Boeing, has influenced Airbus’s decision to delay planned production increases for its narrowbody jets, industry sources report.

Airbus announced on Monday that it would delay its multi-year ramp-up in narrowbody production, cut profit forecasts, and reduce its 2024 delivery target. This decision comes as a result of engine shortages and other parts, causing shares in the aerospace giant to plummet.

CFM, a joint venture of GE Aerospace and France’s Safran, produces LEAP engines that power all Boeing 737 MAX jets and over half of the Airbus A320neo family. Airbus had been negotiating with CFM to secure the necessary number of engines for 2025, aiming to compensate for industrial issues faced by Pratt & Whitney. Airbus sought to increase CFM’s share of A320neo deliveries to around 75%, up from the current 60%.

However, concerns about increasing strain on CFM’s production capabilities, especially with ongoing issues affecting Boeing, have made negotiations challenging. CFM must balance its commitments to both Airbus and Boeing, its largest customer, complicating its ability to meet the increased demand from Airbus.

The current market dynamics, marked by production delays and industrial challenges, underscore the delicate position of CFM. Despite its attempts to accommodate both aerospace giants, the engine maker is cautious about making any moves that could disadvantage Boeing structurally.

Airbus remains under pressure to meet market demand, but the complexities of engine supply chains continue to pose significant hurdles. The company has reiterated its confidence in securing necessary engine commitments for 2025, despite not finalizing exact volumes.