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Christian Scherer, CEO of Airbus's planemaking sector, emphasized that engine supplies from CFM International remained crucial for the company's ability to deliver certain aircraft, despite earlier supply issues this year.
"CFM is a bottleneck," he stated to French reporters, noting that it is still on the "critical path," a term used in the industry to denote essential factors for achieving production or operational objectives. CFM is the primary supplier of engines for the popular A320neo family.
"I regret this situation, but it is the reality," he remarked to the AJPAE aerospace media association.
In July, Airbus had already reduced its industrial targets and issued a profit warning, attributing the setbacks to engine supply shortages from CFM, which is jointly owned by GE Aerospace and France's Safran, along with parts shortages from other suppliers.
CFM did not provide a comment on the matter.
GE Aerospace's CFO, Rahul Ghai, mentioned at a Jefferies conference last month that engine production in the third quarter would improve compared to the second quarter, although it would still face year-over-year pressures. He anticipated further enhancements in the fourth quarter.
Airbus's deliveries dropped by 9% in September, totaling 50 aircraft, leading some analysts to question the company's ability to achieve the 11% increase necessary to meet its annual target of 770 deliveries.
"I acknowledge that September was disappointing; we had aimed for slightly more," Scherer admitted.
He pointed out that the September figures concealed aircraft that had been manufactured but not yet delivered. While he did not elaborate on the reasons for this discrepancy, industry insiders suggested that Airbus might have been compelled to release some planes without engines, referred to as "gliders."
Such actions are uncommon due to the additional capital tied up in inventory but are intended to avoid disruptions in the Airbus assembly line, which is already perceived as lagging behind its targets.
At the same time, Scherer indicated that Airbus has addressed its internal production limitations.
Airbus is set to announce its results on October 30, with many anticipating that aircraft manufacturers and suppliers will continue to shift blame for persistent industrial delays.
NO STRIKE IMPACT
Scherer also provided an update regarding Spirit AeroSystems, which is currently undergoing a restructuring between Airbus and its primary client, Boeing, due to financial and operational challenges.
According to Scherer, production levels at the U.S. aerostructures supplier are "not quite where we would prefer them to be," noting that Airbus has dispatched numerous engineering and procurement specialists to assist.
"We have deployed technical support to Spirit to aid them in overcoming the challenges they are facing, ensuring that deliveries to Airbus are managed as effectively as possible," he stated, adding, "Some sections are occasionally arriving incomplete."
On Thursday, Reuters reported that Airbus was expressing concerns regarding the production of essential structural components for the A350 and A220 aircraft by Spirit AeroSystems, prompting the company to take actions such as sending personnel to impacted facilities and air-freighting components.
Spirit spokesperson Joe Buccino emphasized on Friday that the company is meeting Airbus' delivery schedule. "The involvement of Airbus personnel at Spirit is not a new development and does not signify any urgent production challenges," he remarked.
Spirit has been at the center of a significant crisis involving its former parent company Boeing, following a mid-air incident in January where a door plug blew out. Additionally, both Boeing and Spirit have been impacted by a strike that has halted production of most Boeing aircraft.
Analysts suggest that Airbus cannot swiftly capitalize on its rival's difficulties due to its full order books and production facilities. However, there are growing concerns regarding the overall stability of the interconnected supply chain.
Scherer stated, "We are closely observing the circumstances surrounding Boeing and the impact on an already vulnerable supply chain."
He acknowledged the challenges the industry faces in ramping up production following the pandemic, yet noted a rise in demand, suggesting a potential increase in A330neo output. Currently, production is at approximately four aircraft per month, although he indicated that this rate may not be maintained.