Farnborough Airshow Highlights Production Struggles at Boeing and Airbus
FARNBOROUGH, England — Unlike previous years, the 2024 Farnborough International Airshow lacked significant airplane orders, shifting the spotlight to production challenges at Boeing and Airbus, which are grappling with post-pandemic disruptions. Training new workers, a key issue identified by analysts, is expected to take years to resolve, affecting airlines, suppliers, and the manufacturers. Airbus reported a 56% drop in adjusted profits, citing space business charges and lower aircraft production. Meanwhile, Boeing faces ongoing safety and manufacturing issues, with expected quarterly losses.
Although modest, orders were placed at the show. Boeing secured 96 orders and commitments, including a notable order from Korean Air for up to 50 wide-body planes, while Airbus received 266 orders, a significant decrease from the Paris Air Show’s 826 orders last year. A shortage of parts and skilled labor has further complicated production, delaying the delivery of more fuel-efficient planes and frustrating the industry.
In response, Airbus has deployed over 200 supply chain engineers to address these challenges, while Boeing is focused on training new workers, acknowledging that lower wages in the supply chain are a problem. Airbus also scaled back its delivery targets due to persistent supply chain issues. Experts predict the industry will see long-term impacts, including possible shifts in aerospace work to regions with available labor.
Original Story https://www.cnbc.com/2024/07/30/farnborough-air-show-boeing-airbus-orders-supply-chain-woes.html
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