CFM jet engines delayed by supply chain snags, labor unrest – Reuters (NYSE:GE)
Jet engine maker CFM International, the joint venture co-owned by General Electric (NYSE:GE) and France’s Safran (OTCPK:SAFRY), is facing industrial delays of 6-8 weeks due to supply chain problems and French labor unrest, but expects to recover most of the delays by early Q4, Reuters reported on Monday.
CFM is the largest jet engine maker by units sold, and powers 75% of recently developed narrowbody jetliners including all Boeing’s (BA) 737 MAX planes and roughly half of Airbus’ (OTCPK:EADSF) (OTCPK:EADSY) A320neo family.
Some Airbus customers have been warned that aircraft deliveries, already partially delayed by European factory congestion, could be pushed back further as a result of the CFM engine delays, according to the report.
Boeing (BA) reportedly also has seen delays in receiving engines from CFM, although there are no signs yet that jet deliveries were affected as a result, as the company is building at a slower rate as it clears jets stored during a safety crisis.
CFM told Reuters it is working with suppliers to mitigate supply chain problems and coordinating with air frame partners to accelerate delivery.
CFM is hardly alone in dealing with supply chain snags; Raytheon Technologies, whose Pratt & Whitney engines compete with CFM on the Airbus A320neo, said last month that it was facing supply chain constraints across its business.