Airbus Is Experiencing A 'Golden Age' Of Demand, CEO Says

(MENAFN- Khaleej Times) Airbus is going through a 'golden age' of demand, but the airline has not been able to keep up with it and has struggled to rebuild the supply chain after Covid. That is according to the company's chief, who said the firm has a record backlog to deliver.

Speaking at the World Government Summit (WGS) in Dubai, Guillaume Faury, Chief Executive Officer of Airbus, said global demand for air travel and new aircraft has never been stronger, driven by rising passenger numbers and airlines' need for more fuel-efficient planes.

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However, production challenges and supply chain disruptions continue to hold the company back.

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“The traffic is going up, and the need for new aircraft that are more fuel efficient and more competitive is very strong,” Faury said.“We have a record backlog of aircraft to deliver. From a demand point of view, this is probably a golden age.”

In November last year, Emirates placed an order for an additional eight Airbus A350-900 aircraft, taking the airline's fleet to a total of 73 units. To date, Emirates has only received delivery of 13 A350 aircraft.

Recovering from the pandemic

Faury admitted that the company has found it difficult to fully recover from the impact of the Covid-19 pandemic.“Our supply chain was built over decades,” he said.

“During the pandemic, some companies went down to very low levels of production for 18 months or even two years, and they let a lot of people go in the industry that remains very much driven by individual skills and experience.”

He explained that the aerospace industry depends heavily on skilled workers and experience, which cannot be replaced overnight.“It took time for some suppliers to regain their ability to manage production and deliver the right quality on time,” he said.

Airbus aircraft are made up of around three million individual parts, and a delay in just one component can slow down the delivery of an entire plane.

“If one engine part is missing, you have a problem,” Faury said, adding that engines remain the biggest bottleneck.“In 2025, and probably in 2026 as well, engines will continue to be the most difficult items to get.”

Faury acknowledged that airlines are putting pressure on manufacturers to deliver aircraft faster, saying it reflects how strong the market is.

“It's a good problem to have, to have customers asking for your products,” he said.“But it is also challenging, especially when supply chain issues are still there.”

Chinese rivals

Faury admitted that China's aircraft manufacturer COMAC is emerging as a competitor in commercial aviation.

He noted that COMAC's C919 aircraft is already certified and flying within China, with major Chinese airlines placing large orders.

However, he said the aircraft is still undergoing certification in Europe and remains heavily dependent on Western supply chains.

“Yes, China's COMAC is developing aircraft and wants to expand, but it still relies on parts and expertise from Western suppliers,” he said.

“The industry is large enough for more players, but Airbus plans to remain competitive by innovating and investing in future technologies.”

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