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CFM facing aircraft engine production delays – sources – 05/23/2022 at 23:19


by Tim Hepher, David Shepardson and Eric M. Johnson

May 23 (Reuters) – Aircraft engine maker CFM International, a joint venture of Safran SAF.PA and General Electric GE.N, is facing production delays of six to eight weeks due to problems in its engine line. supply and a recent wage dispute in France, we learned from three sources familiar with the matter.

CFM expects to make up most of that backlog by the start of the fourth quarter, the sources added.

CFM engines notably power all Boeing BA.N 737 MAXs and around half of Airbus A320neos

AIR.PA.

Some Airbus customers have already been warned that aircraft deliveries, already partially slowed by congestion at European factories, could be further delayed by CFM issues, the sources said.

Two of the sources said that the sending of the engines was also delayed for Boeing without this affecting for the moment the deliveries of aircraft from the American aircraft manufacturer, whose production rate is already slowed down time to sell the planes. kept in reserve during this recent security-related issues.

“We are working diligently with our suppliers to ease supply chain constraints and are coordinating closely with our cell partners to expedite deliveries and meet customer demand,” a CFM spokesperson said in response. to a question from Reuters.

An Airbus spokesman said he had nothing to add to recent supply chain statements made during the presentation of the European group’s latest quarterly results.

Guillaume Faury, its executive chairman, told analysts on May 4 that he saw “a lot of challenges” in the short term in the supply chain but that he was reassured enough on the medium and long terms to confirm the rise. planned production rates.

A Boeing spokesperson declined to comment.

Two of the sources said CFM’s delays were mostly related to bottlenecks with suppliers and were compounded by recent slowdowns or work stoppages at Safran in France around wages. A third source, however, said that this second factor was not decisive.

Safran granted a 3% increase to its employees at the end of 2021, but the unions considered it insufficient in the face of inflation. The management accepted an additional increase of 1% on average, according to the unions.

CFM is not the only company in the aerospace sector facing problems with its supply chain.

Raytheon Technologies RTX.N, whose Pratt & Whitney engines also equip the Airbus A320neo, thus reported on April 26 constraints in this area for all of its activity.

(Report Tim Hepher in Paris, David Shepardson in Washington and Eric M. Johnson in Seattle, French version Bertrand Boucey)



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