Airbus is reporting a gradual easing of the supply chain disruptions that have plagued aircraft deliveries, with the company asserting improved management of the ongoing challenges. This comes as both Airbus and its competitor, Boeing, have grappled with industrial delays stemming from pandemic-induced supply chain issues.

Benoit de Saint-Exupery, Airbus's Executive Vice President of Commercial Aircraft Sales, addressed reporters in Taiwan, acknowledging the protracted recovery of the aerospace supply chain. "We think that those disruptions are going to continue a little bit longer unfortunately, but we have a much better handle [on it] and we are managing that supply chain with much more anticipation than before thanks to the learning we had during the pandemic," he stated.

While expressing optimism about the situation improving, de Saint-Exupery cautioned that a full return to pre-pandemic normalcy remains some time away. Currently, the most significant bottleneck lies in engine availability, hindering the company's ability to meet delivery targets. "We're not getting the engines that we need to deliver the aircraft," he explained.

China Airlines Deal Highlights Market Dynamics

De Saint-Exupery's visit to Taiwan coincided with the signing of an order from China Airlines for 10 Airbus A350-1000s. This deal was part of a broader fleet renewal strategy by the Taiwanese carrier, which also included an order for Boeing 777-9 aircraft and 777-8 freighters, totaling $11.9 billion at list prices. Deliveries for the new aircraft are slated to begin in 2029.

"We were competing for the entire order, but we knew it was going to be difficult," de Saint-Exupery told Reuters, acknowledging China Airlines' existing reliance on Boeing 777-300s.

China Airlines Chairman Kao Shing-hwang emphasized the strategic importance of the A350-1000s, which will complement the airline's existing fleet of 15 A350-900 models. These new aircraft will enable the carrier to increase capacity on key long-haul routes, such as New York and London, catering to robust passenger and freight demand.

Positive Outlook for China Airlines

Kao Shing-hwang expressed confidence in the airline's performance, predicting a "great report card for both passengers and freight" in the current year. This positive outlook reflects the resilience of the aviation sector despite ongoing supply chain challenges.

Airbus's ability to navigate these disruptions and secure significant orders, like the one from China Airlines, underscores its strategic positioning in the global aviation market. While engine bottlenecks remain a concern, the company's proactive approach to supply chain management suggests a path towards greater stability and efficiency in aircraft deliveries.