Hyderabad, Nov 27 (PTI) The global supply chain situation is getting better and "we see light at the end of the tunnel", French major Safran's CEO Olivier Andries has said, amid supply woes significantly impacting the aerospace manufacturing ecosystem.
The supply chain constraints have been hitting commercial aircraft upgradations and deliveries.
Andries, at a briefing in the city on Wednesday, said there has been a succession of shocks for the global supply chain.
Responding to a query from PTI on the current supply chain situation, he said Russia's attack on Ukraine created a big shock on raw materials because Russia is a big supplier of raw materials such as titanium, nickel and aluminium for the aerospace industry.
From the demand shock due to the coronavirus pandemic, there is a crisis related to raw materials that has propagated along the supply chain. This has also resulted in supply and price shocks, he noted.
"We are recovering from that... we see the light at the end of the tunnel," Andries said.
Safran, which has significant presence in aerospace, defence and space segments, manufactures engines for commercial aircraft and fighter jets, among others.
CFM International, an equal joint venture between Safran and GE Aerospace, manufactures LEAP engines that powers narrow-body aircraft, including Airbus A320 neos and Boeing 737 MAXs.
One of the world's fastest growing civil aviation markets, India is CFM’s third-largest market, with five Indian carriers operating more than 400 LEAP-powered aircraft and 2,000 engines on order.
On Wednesday, Safran inaugurated its largest MRO (Maintenance, Repair and Overhaul) facility for LEAP engines in Hyderabad that will be operational early next year. The company will also be setting up a MRO shop for M88 engines for Dassault Aviation Rafale fighter jets.
Meanwhile, a recent study by IATA and consulting firm Oliver Wyman said supply chain challenges are estimated to cost more than USD 11 billion for the global airlines industry in 2025.
The slow pace of production is projected to cost the airlines industry over USD 11 billion this year, mainly due to excess fuel, additional maintenance, increased engine leasing and surplus inventory holding costs, as per the study released in October.
Earlier this month, IATA (International Air Transport Association) Director General Willie Walsh said there was huge frustration that the supply chain issues are not getting much better.
In October, a senior GE Aerospace official said the overall supply chain situation in the aviation industry is constrained and GE Aerospace is solving some of the supply chain challenges with the help of its proprietary lean operating model.