Airbus Boosts Production With Supply Aid
Airbus is taking bold measures to boost its aircraft production rates by providing financial and human resource support to its suppliers. This strategy comes in the wake of falling just short of its ambitious 2024 production target and aims to overcome supply chain frustrations, particularly with engine manufacturers like CFM International.
During a recent interview, Airbus CEO Guillaume Faury explained that the company is proactively stepping in to help its key suppliers. “We are giving support to the supply chain. It has a financial dimension, but that’s not a problem. It is also about human resources deploying people to support supply chain management teams,” Faury stated. This targeted support approach is part of a broader plan to ramp up production. Airbus is setting its sights on delivering 75 narrowbody aircraft a month by 2027—a goal that demands a more robust and coordinated supply chain.
The support provided by Airbus is limited and contingent upon repayment by its suppliers, ensuring that the strategy does not set a universal trend for all suppliers in the industry. Instead, it is a carefully calibrated measure designed to alleviate immediate production bottlenecks caused by shortages and delays in the supply of crucial components. Airbus’ CEO of Commercial Aircraft, Christian Scherer, described the year 2024 as “good for the company” despite the company falling slightly short of its annual delivery target. In early January 2025, Airbus confirmed that it had delivered 766 commercial aircraft, just below its revised target of 770 planes after adjusting its goal from an original estimate of around 800 for 2024.
A key factor behind the missed targets has been the shortage of engines and other vital components in the supply chain. The issues with engine manufacturers, notably CFM International, have affected production schedules and delivery timelines across the industry. Faury is optimistic that these challenges will be largely behind Airbus by 2026. By then, the combined effect of the financial and human resource support, along with any improvements in the engine and component supply chain, should lead to enhanced production efficiencies.
Airbus’ initiative to support its suppliers underscores the importance of collaborative efforts in the aviation industry. When one company struggles to meet production quotas due to supply chain constraints, a cooperative approach can bring mutual benefits. For Airbus, such proactive measures not only aim to meet and exceed production targets but also help stabilize long-term relationships with critical suppliers. The financial assistance being offered is structured to be repaid, ensuring that the support does not become a subsidy, but rather a temporary boost to help suppliers navigate a challenging period.
Industry experts have noted that if successfully implemented, this strategy could set the stage for other major planemakers to adopt similar measures to address supply chain issues. Increasing production rates is vital in a highly competitive global market where demand for air travel is continuously growing. Moreover, ramping up production will allow Airbus to better compete with industry rivals, ensuring that it remains at the forefront of innovation and efficiency.
As the industry anticipates the ramp-up toward 2027, Airbus’ support program is being viewed as a crucial step in securing the future of commercial aircraft production. With improved supply chain performance and enhanced collaboration with its suppliers, Airbus is well on its way to reaching its ambitious production goals and delivering on its promise of world-class performance and reliability.
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