Holidaymakers may face flight cancellations and reduced services this summer due to Boeing’s ongoing production issues and Airbus engine recalls. The recent safety incidents involving Boeing 737 MAX aircraft and the recall of hundreds of Airbus engines have led to a backlog of orders and extended delivery deadlines, leaving airlines short of aircraft. As a result, some flights may be canceled or face surging prices.
Condor, a leading European leisure airline, has recently welcomed its first Airbus A320neo aircraft, marking a significant milestone in its fleet modernization journey. As part of a comprehensive strategy to enhance operational efficiency and provide greater comfort for its passengers, Condor is integrating both the A320neo and A330neo aircraft into its fleet. The A320neo, leased from Avolon, has joined Condor’s existing fleet of A320 family aircraft, which have been the backbone of the airline’s European operations for over two decades. The latest A320neo model features advanced engines from Pratt & Whitney and the innovative Airbus Airspace cabin, providing enhanced efficiency and passenger comfort. With over 10,000 orders from more than 130 clients worldwide, the A320neo family has gained significant recognition for its fuel efficiency, reduced emissions, and quieter operations.
Canada has granted exemptions from sanctions on Russian titanium to Bombardier and its partner Airbus to protect domestic jobs and maintain production. The waivers allow the companies to continue using titanium from Russia’s VSMPO-AVISMA, which is essential for manufacturing aircraft engines. The move has drawn criticism from Ukraine’s ambassador to Canada, who argues that it supports the Kremlin’s war machine. The government maintains that the exemptions are necessary to safeguard Canadian employment and critical military procurement projects.
China’s aviation sector is putting pressure on Airbus and Boeing to increase production, according to Greg Waldron, Asia managing director at FlightGlobal. This pressure is not limited to Boeing but also affects Airbus. The increase in demand is driven by China’s rapidly growing aviation market, which is expected to continue to expand in the coming years.
Industry sources report that Korean Air is currently engaged in negotiations with Boeing for the potential purchase of at least 10 Boeing 777X jetliners, marking a possible shift back towards its long-standing partnership with the US-based manufacturer. Korean Air has traditionally relied on Boeing for its fleet, but recently placed a significant order with Airbus, its European competitor. Discussions regarding the acquisition of the 777X, an advanced version of the 777 mini-jumbo currently in service with Korean Air, are ongoing between the two companies. However, a third industry source suggests that Korean Air remains in continuous discussions with Boeing on potential orders but has no immediate concrete plans to finalize an agreement for new 777s. Korean Air has not yet released an official statement, while Boeing declined to comment, directing fleet-related inquiries to the airline.
Despite being the first Western nation to sanction Russian titanium, the Canadian government has granted Airbus permission to use the metal in its manufacturing processes. The exemption aims to facilitate the importation of EU-produced jets that were built with Russian titanium. While the EU has sanctioned Moscow following the Ukraine conflict, it has not blacklisted VSMPO-AVISMA, the world’s largest processed titanium producer. Airbus and Boeing both announced plans to discontinue using Russian titanium in 2022, but major suppliers for Boeing continue to purchase from VSMPO-AVISMA. Only Canada and Ukraine have sanctioned the company, while the US has imposed export controls.
Canada has granted Airbus a waiver to use Russian titanium in its manufacturing after becoming the first Western government to ban supplies of the strategic metal. This move allows Airbus flexibility in its Canadian plants and addresses concerns about potential disruptions to its operations caused by the ban on the import of European-built long-range jets that rely heavily on titanium. Russian state-backed VSMPO-AVISMA has been the industry’s largest titanium supplier. The Canadian government’s stance is expected to elevate the debate over further sanctions against Russia’s economy.
Airlines still have a lot of older narrowbody aircraft to replace, with the Airbus A320ceo, A321ceo, and Boeing 737-800 leading the way. According to AviationValues, 59% of the aircraft within this segment are either the Airbus A320ceo or Boeing 737-800, both of which have been replaced by new-generation aircraft. However, more airlines are moving toward larger aircraft, with the A321neo’s backlog now surpassing the A320neo’s backlog. As of March, the split between older and newer generation aircraft was 70% to 30%, meaning there is still a lot of work to do for airlines to replace their older aircraft.
Boeing’s (BA) attempt to reacquire Spirit AeroSystems (SPR) is facing challenges due to the valuation of factories that produce parts for rival aircraft manufacturer Airbus (EADSY). Spirit’s involvement in the supply chains of both Boeing and Airbus complicates the negotiations.
Robin Hayes, former CEO of JetBlue, has been named as the new CEO of Airbus’ North America division, effective June 2023. Hayes brings over three decades of aviation industry experience to the role, having previously held senior executive positions at JetBlue and British Airways. He is tasked with leading Airbus’ commercial, helicopter, space, and defense operations in the region, overseeing a workforce of over 10,000 employees and an annual expenditure of $15 billion. Hayes aims to enhance Airbus’ presence in the North American commercial market and contribute to the company’s sustainability initiatives.
