Turbulent times: Airbus is facing setbacks within its fleet; Boeing makes comeback and exposes the contrast in the sector – The Times of India

Airbus is facing a new wave of setbacks, underscoring mounting pressure on its vast but fragile supply chain. The past week was a stark reminder that the planemaker is not immune to the production problems facing the broader aviation industry, where supply shortages and labor shortages persist even years after the pandemic ends.On Wednesday, the planemaker was forced to cut its long-standing aircraft delivery target for this year after discovering that a lesser-known Spanish supplier had delivered aircraft panels that did not meet specifications. A blow that highlighted how vulnerable the €155 billion manufacturer still is to disruptions at smaller suppliers.

Last Friday, Airbus issued an urgent directive for a software update for about 6,000 A320 aircraft, its flagship fleet, after identifying a possible flaw in the interface between onboard computers and the flight control system.Three days later, Airbus revealed a quality issue with metal panels used in the fuselage of the same aircraft, requiring detailed inspections of more than 600 aircraft already in service or in various stages of production.“The pressure of quarterly results, sometimes the pressure of competition, probably the quality is going down a little bit,” Tony Fernandes, founder of AirAsia, told Bloomberg. “It’s a good warning to everyone.”The one-two setback this week sent investors into turmoil, leading to Airbus’ worst trading day since April. The contrast was especially stark when Boeing, buoyed by renewed optimism about its financial recovery, posted its strongest stock gains in months.On Tuesday, Boeing made a series of optimistic predictions, from higher deliveries of its 737 and 787 jets next year to a long-awaited return to positive cash flow after years of heavy outflows. Investors welcomed the prospects, sending the American aircraft manufacturer’s shares up as much as 10 percent, as quoted by Bloomberg. Boeing has slowly pulled itself out of a yearslong crisis that began in late 2018 with the first of two deadly crashes, worsened during the Covid-19 pandemic and worsened again in early 2024 when mid-flight finishing shortcomings led to another near-disaster. The situation was further exacerbated late last year, when a debilitating strike halted production for weeks and depleted the company’s resources.Since then, however, the legendary American manufacturer has made a steady comeback under new CEO Kelly Ortberg, who has overhauled management and set a sharper operating course. Boeing has also benefited from strong support from the White House, with the US president regularly using aircraft orders in global negotiations and trade talks.It is still unlikely that Airbus’s recent setbacks will reach the magnitude of last year’s turmoil at Boeing. The company already resolved the software issue this weekend, minimizing operational disruptions, and says most of the hull panels being inspected are expected to meet requirements.However, the revised delivery timeline will mean some airlines will have to wait even longer for their planes, even as airlines rush to upgrade their fleets to keep up with rising global travel demand.With China’s bid to challenge the long-standing duopoly still in its infancy, the fortunes of Airbus and Boeing remain closely intertwined.With Airbus targeting monthly production of 75 A320 family aircraft by 2027 and Boeing increasing production of its best-selling 737, both manufacturers face the same pressure: scaling up while maintaining quality and ensuring a fragile global supply chain can support their ambitions.