(Bloomberg) -- Airbus SE is grappling with a lack of critical engine parts powering its bestselling A320neo family of aircraft, a setback that played a role in the planemaker’s recent cutback in production targets.
The issue is centered around an unusually high number of non-conforming high-pressure turbine blades, creating a shortage of the component for new engines, according to people familiar with the situation. CFM International Inc., one of the two engine suppliers on the Airbus’s A320-type aircraft, recently made the discovery on the Leap engine parts and alerted Airbus, said the people, asking not to be identified as the details of the findings are confidential.
The scant supply of compliant blades has constrained output of the Leap 1A, depriving Airbus of a key part for its most popular airliner. GE Aviation, one half of the CFM joint venture alongside Safran SA, acknowledged this week that it’s not been able to produce the engine in desired numbers.
Last month, Airbus cut its annual delivery target, citing a shortage of parts ranging from engines to cabin interiors and seats. It also pushed back its goal to produce 75 of its A320 single-aisle jets per month by one year to 2027. The part issues affecting the supply of Leap engines were one of the reasons for the outlook downgrade, another person said.
GE now expects output of its Leap jet engine to increase by 5% at most this year, marking the second time the company has cut its 2024 outlook for the engine. At its investor day presentation in March, GE forecast as much as 25% growth.
The issue doesn’t affect in-service engines, said the people. GE declined to comment beyond the statements about the engine made during an earnings release this week. Airbus had no further comment.
The loss of skilled workers during the pandemic has been a major disruptor for aviation suppliers. GE Chief Executive Officer Larry Culp said that not only did the industry lose people during Covid, it was also deprived of “a tremendous amount of experience,” forcing companies to rebuild capabilities. The company has dispatched more than 500 people to suppliers to support them, Culp said this week.
The new issue with the Leap turbine shows the continuing challenges for aircraft manufacturers as they look to ramp up production and chip away at their increasingly long backlogs.
Airbus has more than 7,000 A320neo type planes on order. Of the customers that have chosen their engine type, almost 66% picked the Leap, with the rest made up of Pratt & Whitney’s GTF model.
That engine has also endured quality issues with components that could fail prematurely, temporarily grounding hundreds of A320neo aircraft at a time over the next few years.
Jet engines have been more fickle in newer generation aircraft such as the A320neo as they run much hotter in order to eke out better fuel efficiency. That, in turn, has required shorter maintenance cycles than older models, like the CFM56, the world’s most widely flown power plant.
Separately, CFM is redesigning the HPT blades as part of a package to help the power plants better cope with sandy and harsh environments. The company said this week that it aims to introduce the upgrade by the end of the year.
Boeing Co.’s competing 737 Max model also flies with the Leap engine. The US company has produced its aircraft at a much lower rate than Airbus because Boeing has slowed down its factories to fix manufacturing defects.
--With assistance from Anthony Palazzo.
©2024 Bloomberg L.P.
