Welcome to Extreme Investor Network, where we bring you the latest insights and updates on the world of business and investing. Today, we’re diving into the recent happenings at the Farnborough Airshow, where the focus was on the struggles faced by industry giants Boeing and Airbus as they navigate challenges in airplane production.
At this year’s air show, instead of the usual massive airplane orders that we’ve seen in recent years, the spotlight was on the obstacles that Boeing and Airbus are encountering as they try to ramp up production while recovering from the impact of the pandemic. Issues such as training new workers and parts shortages are plaguing both manufacturers, leading to delays in deliveries and a shortage of new, more fuel-efficient planes.
Boeing’s senior vice president of global supply chain and fabrication, Ihssane Mounir, acknowledged the challenges faced by the industry, highlighting the need for better planning and predictability. Both Boeing and Airbus are set to report their quarterly results this week, with analysts expecting more losses for Boeing and delivery target cuts for Airbus.
Despite the subdued order numbers at the air show, with Boeing racking up 96 orders and Airbus securing 266, the overall backlog for both manufacturers remains robust. Airlines like United and Air India have been stocking up on new jet orders as travel rebounds post-pandemic, but the production strains are slowing down the process.
One major issue that both Boeing and Airbus are grappling with is the shortage of parts, from landing gear to engine components to cabin interiors. This has led to production delays and frustrations among airline executives. Airbus is taking a hands-on approach by deploying supply chain engineers among suppliers to address these issues.
Additionally, the loss of skilled workers due to the pandemic has hampered production, with both manufacturers now tasked with training new employees. This, coupled with the need to reset wages to attract more workers to the industry, poses a significant challenge for the aerospace sector.
As we look to the future, it’s clear that both Boeing and Airbus have a tough road ahead as they navigate production challenges and work to meet growing demand in the aviation industry. Stay tuned to Extreme Investor Network for more updates on this evolving story and other key developments in the world of business and investing.