Challenges in Supply Chain Management

Airbus is facing significant challenges in its supply chain, particularly related to the production of engines for its A320 family of aircraft. Issues with engine suppliers, such as Pratt and CFM, have created bottlenecks that hinder Airbus's ability to meet its production targets. For instance, a recall campaign from Pratt has resulted in numerous aircraft being grounded as they await retrofitting of their engines. As a result, Airbus is deploying additional resources to support suppliers in resolving these issues, although these challenges are expected to persist through the end of the year before gradually improving in the coming years.