Safran Targets Recovery of Leap Engine Delivery Backlog to Airbus by October

What's Happening?

Safran is working to recover the backlog of CFM International Leap-1A engine deliveries to Airbus by the end of October. The manufacturer has faced supply-chain bottlenecks and a strike earlier this year, affecting its delivery schedule. Airbus has been forced to park around 60 engineless aircraft, most missing Leap engines, impacting its delivery plans. Safran's CEO Olivier Andries stated that the company aims to catch up by the end of the third quarter and fully recover by October. Airbus plans to deliver 820 commercial aircraft this year, having managed 306 by June 30. Safran is making week-to-week decisions on engine allocation to support both in-service fleets and aircraft manufacturers.

Why It's Important?

Safran's efforts to address the Leap engine delivery backlog are crucial for maintaining Airbus's production and delivery schedules. The recovery plan is vital for Airbus to meet its annual delivery targets and avoid disruptions in its operations. The situation highlights the challenges faced by the aerospace industry due to supply-chain issues and labor strikes. Safran's ability to execute its recovery plan will impact its reputation and relationships with major clients like Airbus. The resolution of these delivery challenges is essential for the stability and growth of the aerospace sector, affecting airlines and manufacturers globally.

What's Next?

Safran's focus on recovering the Leap engine delivery backlog will involve strategic decisions on engine allocation and production efficiency. The company may implement measures to prevent future supply-chain disruptions and improve labor relations. Airbus will closely monitor Safran's progress to ensure its delivery targets are met, potentially adjusting its production plans based on engine availability. The aerospace industry may explore collaborative solutions to address supply-chain challenges and enhance resilience against labor strikes. Successful recovery efforts could strengthen Safran's position in the market and reinforce its partnerships with major aircraft manufacturers.