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Production of Airbus and Boeing planes goes down the pan

Stephen Foley
Saturday 09 August 2008 00:00 BST
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Production of some of the world's most popular aeroplanes has fallen behind schedule because suppliers are struggling to keep up with demand for basics such as coffee makers and toilet seats.

Analysts on Wall Street and in Europe are becoming increasingly concerned about anecdotal evidence from the airline customers of Boeing and Airbus, who say they have suffered delays to their orders.

Both manufacturers have enjoyed a boom in orders from airlines in recent years that has left them struggling to cope.

Their flagship new planes – the A380 "super-jumbo" from Airbus and the Boeing 787 Dreamliner – have both fallen badly behind schedule because of difficulties with new technology, but the delays on existing models have much more prosaic causes.

Both companies are taking a closer look at their suppliers after shortages of items used to fit out the cabin. These include business class seats, toilet seats and kitchen equipment, typically made by smaller companies such as Britain's Premier Aircraft Interiors Group, which have had problems ramping up production.

Boeing executives have ordered the creation of a "hit squad" of engineers to go into suppliers and help with delays. And an Airbus spokesman said the company was reviewing its supply chain.

Planes affected include the Boeing 777 and the Airbus A330, both of which have been produced for years without incident, until recent months. In July, Boeing announced a 19 per cent drop in operating income at its commercial aircraft division because it delivered three fewer 777s than expected, as a result of parts shortages.

Premier says it had been too slow to expand after winning big new orders in recent years, and ramping up production was complicated because each airline customer wants different equipment designed into the galley.

Tom Williams, Airbus executive vice president for programmes, said: "It''s cost a ton of money. We've done some horrendous somersaults to get planes delivered."

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