((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto)) by Rajesh Kumar Singh
A GE Aerospace GE.N executive said on Wednesday that global supply chains would likely continue to face challenges even into next year, despite a slowdown in production at Boeing BA.N .
Russell Stokes, GE Aerospace’s head of engines and commercial services, said that while the company matches Boeing’s production rates for this year, it is working with its suppliers to support increased production in future years. .
“I am convinced that with time things will improve,” he said. “But the environment remains difficult for this year and probably for next year
GE Aerospace co-produces the engine for Boeing and Airbus AIR.PA narrow-body aircraft with France’s Safran SAF.PA through their joint venture CFM, which is the sole supplier to Boeing’s 737 MAX family of aircraft .
Boeing’s jet production has slowed sharply as regulatory scrutiny has increased since January, when a door plug broke off an Alaska Airlines ALK.N jetliner in midair. flight. GE Aerospace has lowered its LEAP jet engine production estimates for this year.
The slowdown could help a strained supply chain catch up with demand, but it also risks making the situation worse.
Larry Culp, chief executive of GE Aerospace, attributed the current supply chain difficulties to the pandemic, which has led to a drop in demand for air travel, forcing the aviation industry to lay off thousands of workers.
Supply chain problems have crippled the global industry. They not only made it more difficult to increase jet production, but also lengthened turnaround times at aircraft engine repair shops.
Some airline CEOs have called engine repair times a major constraint for the industry.
GE Aerospace, which became an independent company this year, has a dominant share of the engine market for narrow-body jets and enjoys a strong position in wide-body aircraft. More than 70% of its commercial engine revenue comes from parts and services.
Mr. Stokes said the company’s equipment and service businesses are facing material availability issues.
GE Aerospace has deployed 500 of its engineers to suppliers and subcontractors and is using artificial intelligence to bypass bottlenecks, the company executive said.
The company now plans to deploy technology, used to identify fake artwork, to detect chemical anomalies in metal pieces. This initiative is part of the company’s efforts to reduce turnaround times at its repair shops by 30% compared to last year.
According to Stokes, airlines want more engines to support their fleets. “We are doing everything we can to meet this demand,” he said.