Safran has signalled early signs of improvement in the global aerospace supply chain as the sector gradually recovers from extensive disruptions.

CEO Olivier Andries conveyed cautious optimism during a media briefing, describing the current situation as seeing “light at the end of the tunnel,” despite ongoing challenges such as raw material shortages and delivery delays.

The supply chain disturbances were initially triggered by the pandemic-induced collapse in demand and later exacerbated by geopolitical tensions.

The invasion of Ukraine by Russia significantly impacted the sector, cutting off key supplies of metals vital to aerospace manufacturing, including titanium, nickel, and aluminium.

Russia remains a major source for these materials, and its reduced export capacity created a ripple effect through the entire supply chain. This crisis led to severe price inflation and disrupted delivery schedules, further straining manufacturing timelines and costs.

Safran, a leading supplier of engines for both commercial and military aircraft, maintains strong partnerships within the aerospace ecosystem. Its collaboration with GE Aerospace

via CFM International produces the widely used LEAP engines powering Airbus A320neo and Boeing

737 MAX fleets. India represents a significant market for these engines, ranking as CFM’s third-largest, with operational fleets exceeding 400 aircraft and a backlog of approximately 2,000 engines on order.

In recognising India's growing role, Safran recently inaugurated its largest LEAP engine maintenance, repair, and overhaul (MRO) facility in Hyderabad, scheduled to commence operations early next year. 

This facility is expected to enhance service capabilities, reduce turnaround times, and support fleet readiness in the region. Additionally, Safran is establishing a specialised maintenance workshop for M88 engines that power Rafale fighter jets, reinforcing its presence in India’s defence aviation sector.

While there are optimistic signs, the International Air Transport Association (IATA) and consultancy Oliver Wyman warn that supply chain limitations could cost global airlines over USD 11 billion in 2025.

Prolonged constraints are delaying aircraft production and pushing related operational expenses higher, affecting fuel efficiency, maintenance, engine leasing, and inventory management.

Despite efforts from industry stakeholders, frustrations remain high over the pace of supply chain recovery. IATA’s Director General Willie Walsh has repeatedly highlighted concerns that improvements have not yet accelerated adequately to meet industry demand.

Similarly, a senior executive from GE Aerospace recently acknowledged persisting supply pressures but emphasised ongoing mitigation efforts through lean operational strategies designed to enhance responsiveness and reduce bottlenecks.

Safran’s outlook reflects a cautious but positive trajectory towards stabilisation in the aerospace supply chain. Its expanded investment in Indian infrastructure and partnerships underlines the strategic importance of regional hubs as global companies seek to diversify and reinforce their supply networks amid continuing global uncertainties.

Based On ET News Report