Global airline executives predict that supply chain challenges will persist for at least the next two years, as manufacturers continue to struggle to meet the increasing demand from the growing industry.
During a panel discussion at the Farnborough Air Show on July 22, Luis Gallego, Chief Executive of British Airways and Iberia owner IAG, suggested that these challenges will be a factor for “a couple of years minimum.” He emphasized the collective nature of the industry’s struggle, stating, “We are in this together. We want them to improve. We need aircraft, we need engines, we want to grow, but we cannot do it right now on the path that we want.”
Air India Chief Executive Campbell Wilson also foresees two more years of supply chain issues. “The products themselves are okay; the pace of delivery is not,” he said. “Restarting an industry and a supply chain from scratch is clearly difficult, and it’s difficult for all of us.”
Wilson pointed out that the challenges extend beyond new aircraft deliveries, noting that Air India is facing particular difficulties with the refurbishment of its fleet. “The things that can trip you up are maybe not the obvious ones,” he explained. “We all know the airframers and the challenges they face, we all know about some of the engine manufacturers and the challenges they face. But seat supply is another bottleneck and in our case is probably the principal bottleneck.”
Guliz Ozturk, Chief Executive of Pegasus, highlighted the significant impact of even short delays in new aircraft deliveries. “Even two or three weeks for a July aircraft creates headaches because that is so critical to an airline,” she said.
Ozturk also noted the uncertainty caused by unclear delivery schedules as a major issue. “The predictability should be there because we plan a year ahead, two years ahead,” she stated. “It needs a closer collaboration, a closer information exchange so we know what to expect.”
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