Jet shortages, supply chain stress to dominate aviation summit
Aviation leaders gathering in the UK next week have a shot at addressing some of the lingering issues hanging over the industry — from plane production woes at Boeing Co. and Airbus SE that are causing huge order backlogs, to aging fleets that are making it increasingly hard to cut flight emissions. The Farnborough International Airshow, which kicks off July 22, is typically a platform for planemakers to rack up multibillion-dollar deals. But two years on from the pandemic, there’s mounting frustration among airline executives over lengthy waits for new jets, supply chain breakdowns and a lack of spare parts. Bloomberg took a look at some of these issues through a series of charts, analyzing data from aviation analytics firm Cirium and aviation data, intelligence and advisory company IBA. Constraints on the factory floor are more than a headache for two major planemakers and their airline customers. The lack of capacity could impact passengers too, translating into fewer flights and routes, and higher fares. People are also flying on older planes for longer. At the same time, Airbus and Boeing continue to take on new orders as some carriers bet big on air travel demand into the next decade, meaning order books are ballooning even as production remains sluggish. The shortage of new and more efficient jets, which burn less fuel, is also seriously limiting the aviation industry’s ability to cut emissions and reach net zero by 2050. Retirement of planes this year lags previous years as the unexpected grounding of jets forces carriers to extend the life of older, more fuel-hungry aircraft as a contingency. With newer planes not coming into service as expected, the path toward reducing carbon emissions has slowed. In 2024, global aviation industry CO2 emissions are expected to exceed 2019 levels. “These aircraft can’t go on forever, emitting 15% to 20% more CO2 than their planned replacements,” Rob Morris, the global head of consultancy at Cirium Ascend, said. “At some point the deck of cards comes crashing down.” <br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-07-19/general/jet-shortages-supply-chain-stress-to-dominate-aviation-summit
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Jet shortages, supply chain stress to dominate aviation summit
Aviation leaders gathering in the UK next week have a shot at addressing some of the lingering issues hanging over the industry — from plane production woes at Boeing Co. and Airbus SE that are causing huge order backlogs, to aging fleets that are making it increasingly hard to cut flight emissions. The Farnborough International Airshow, which kicks off July 22, is typically a platform for planemakers to rack up multibillion-dollar deals. But two years on from the pandemic, there’s mounting frustration among airline executives over lengthy waits for new jets, supply chain breakdowns and a lack of spare parts. Bloomberg took a look at some of these issues through a series of charts, analyzing data from aviation analytics firm Cirium and aviation data, intelligence and advisory company IBA. Constraints on the factory floor are more than a headache for two major planemakers and their airline customers. The lack of capacity could impact passengers too, translating into fewer flights and routes, and higher fares. People are also flying on older planes for longer. At the same time, Airbus and Boeing continue to take on new orders as some carriers bet big on air travel demand into the next decade, meaning order books are ballooning even as production remains sluggish. The shortage of new and more efficient jets, which burn less fuel, is also seriously limiting the aviation industry’s ability to cut emissions and reach net zero by 2050. Retirement of planes this year lags previous years as the unexpected grounding of jets forces carriers to extend the life of older, more fuel-hungry aircraft as a contingency. With newer planes not coming into service as expected, the path toward reducing carbon emissions has slowed. In 2024, global aviation industry CO2 emissions are expected to exceed 2019 levels. “These aircraft can’t go on forever, emitting 15% to 20% more CO2 than their planned replacements,” Rob Morris, the global head of consultancy at Cirium Ascend, said. “At some point the deck of cards comes crashing down.” <br/>
