Safran says global supply chain pressures easing as recovery picks up

The global aerospace supply chain is showing early signs of improvement, with Safran CEO Olivier Andries saying the industry now “sees light at the end of the tunnel”, even as manufacturers continue to deal with raw material shortages and delivery delays. He was speaking at a briefing in the city on Wednesday, reported PTI.

At the media interaction, Andries said the sector has endured a series of disruptions. He cited the demand collapse during the pandemic and the subsequent shock triggered by Russia’s attack on Ukraine, which hit supplies of titanium, nickel and aluminium. Russia is a major source of these metals for aerospace companies.

He told PTI that the raw material crisis travelled through the entire supply chain and caused price and delivery pressures. “We are recovering from that... we see the light at the end of the tunnel,” he said.


Safran, which supplies engines for commercial aircraft and military platforms, partners GE Aerospace through CFM International to produce LEAP engines used on Airbus A320neo and Boeing 737 MAX aircraft. India is CFM’s third-largest market, with more than 400 LEAP-powered aircraft in operation and around 2,000 engines on order.

The company on Wednesday inaugurated its largest LEAP engine MRO facility in Hyderabad, which will begin operations early next year. It is also setting up a maintenance shop for M88 engines that power Rafale fighter jets.

A study released in October by IATA and Oliver Wyman estimated that supply chain constraints could cost global airlines more than USD 11 billion in 2025. The slow pace of aircraft production is expected to push up costs related to fuel use, maintenance, engine leasing and inventories.

Earlier this month, IATA Director General Willie Walsh said there was widespread frustration that the supply chain situation was not improving fast enough. In October, a senior GE Aerospace official also said the aviation sector continues to face supply pressures, though the company is addressing some of the issues through its lean operating model.

(With inputs from PTI)