Supply chain strains set to weigh on aviation industry bounce-back

investing.com:

By Xinghui Kok, Lisa Barrington and Brenda Goh

SINGAPORE (Reuters) — Parts shortages and delivery delays plaguing the global aviation industry are easing, but could take up to two years to resolve, firms at the Singapore Airshow said, adding to the pressures clouding a post-pandemic recovery in travel demand.

European planemaker Airbus said it was sending «dozens and dozens» of engineers deep into supply chains to unlock bottlenecks, and aircraft maintenance firms such as Lufthansa Technik said they were stocking more spare parts to mitigate delays. But all said the sector was in a tight spot.

Post-pandemic travel demand has rebounded globally, prompting airlines to order new, more efficient planes to expand networks and cut costs, particularly in Asia Pacific.

Giants Airbus and Boeing (NYSE:BA) are struggling to meet demand.

«Next year's deliveries will be nine months late from the contracted time,» Michael Szucs, chief executive of Philippine budget airline Cebu Pacific, told Reuters on the sidelines of Asia's largest aviation summit, referring to new Airbus aircraft.

Lead times to procure items such as metals and windshields can be 2 to 5 times longer compared with pre-2020, firms told Reuters, because of reduced production of aerospace materials, loss of skilled manpower during the pandemic, and reduced supply sources caused by the war in Ukraine.

«The aerospace-grade titanium shortage started with the Ukraine war,» said Roberto Tonna, chief executive of aerospace supply chain firm ALA. There are also shortages of materials such as inconel and steel, and skilled labour, he added.

«We got quoted 72 weeks for a product that usually we would get in 36-40 weeks… I think it would take 18-24 months to go back to the way