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Aerospace parts shortages persist

Aircraft manufacturers have struggled to ramp up production to meet higher-than-expected demand. Problems remain from persistent staff and component shortages during the COVID-19 pandemic and insufficient raw materials supply due to war in Ukraine. A shortage of aircraft engines, worsening since the second half of 2023, now impacts manufacturing and maintenance facilities alike. This disruption is set to exacerbate delivery delays of new aircrafts.  

Both issues are unlikely to be resolved in the near future, with recent statements by industry representatives suggesting that the shortage of new aircrafts could last into 2026 and beyond, and engine shortages expected to persist for the rest of the decade.  

The persistent shortages will likely prolong disruptions related to the final assembly and delivery of new aircrafts, so suppliers further down the supply chain should brace for potential business impacts if aircraft manufacturers decide to delay the purchase of other key components as they await the delivery of missing parts.  

Engine-related manufacturing flaws disrupt airplane production schedules  

With post-pandemic demand picking up much faster than many  in the industry predicted, some companies have struggled to keep up, most notably engine makers. Persistent supply chain disruptions have slowed new engine deliveries while a surge in travel pushed up the need for engines in repair and maintenance facilities. This has created increased competition between aircraft assembly plants and maintenance sites.  

While aircraft demand is expected to grow, manufacturing issues could further curtail the already limited engine supply in the coming years. Most notably, flawed components made by Pratt & Whitney, a major engine maker, could disrupt engine supply for Airbus’ A320neo aircraft and strain global capacity as hundreds of planes are expected to be grounded due to inspections. Airbus SE is working with the supplier to balance the delivery of engines for new planes with deliveries needed to maintain existing fleets, but the issue will likely intensify competition between manufacturers and repair facilities.  

in January 2024, the U.S. Federal Aviation Administration (FAA) issued a Notice of Proposed Rulemaking (NRPM) that would require further inspections of the Pratt & Whitney PW1500G and PW1900G GTF engines. More than 400 of these engines are currently installed in aircrafts listed in the U.S. registry, mainly in Airbus A220s operated by Delta Airlines, JetBlue Airways, and Breeze Airways. It remains unclear whether maintenance facilities would be able to complete the additional checks during already scheduled overhauls or whether more down time would be needed, which could impact airlines’ flight schedules. 

Engine shortages are set to worsen after it was discovered that a UK-based distribution company called AOG Technics Ltd. sold engine components with falsified safety certifications as well as unapproved parts. The components that are changed when an engine comes in for maintenance usually come with documents chronicling previous inspections and overhauls as well as information on whether a component can still be used safely. 

Safran SA and General Electric Company, the makers of the world’s bestselling CFM56 engines, discovered more than 90 forged certificates, with fake components found in over 145 engines. Thousands of engine components with incorrect documentation were likely sold to airlines, maintenance workshops, and distributors before the fraud was discovered. 

 

Everstream clients are receiving more detailed insights and recommendations about this risk. 

Contact us for a personalized demo showing how to get a complete view of the risks affecting your end-to-end supply chain and what you can do to mitigate them. 

 

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