AeroGenie — Uw intelligente copiloot.
Trending
Categories
Honeywell Reports Improvements in Aerospace Electronics Supply Chain

Honeywell Reports Improvements in Aerospace Electronics Supply Chain
Progress Amid Persistent Industry Challenges
Honeywell has announced significant advancements in the production of aviation electronics, despite ongoing supply chain difficulties affecting the aerospace sector. Ben Driggs, Chief Commercial and Strategy Officer at Honeywell Aerospace, highlighted that components such as avionics, navigation, and satellite communications equipment have experienced the most notable improvements. This progress is attributed to these electronics being less reliant on constrained raw materials, although Driggs did not specify which materials were involved.
As a key supplier to major aircraft manufacturers including Boeing, Airbus, and China’s COMAC, Honeywell provides a range of products such as avionics, flight control systems, and ground-based power units. The company’s Aerospace Technologies segment has benefited from strong demand across both commercial aviation and defense markets, even as the broader industry continues to face supply chain disruptions.
Ongoing Supply Chain Strains and Industry Impact
The aerospace industry remains challenged by shortages of labor and critical materials like aluminum, steel, and superalloys. The International Air Transport Association (IATA) projects that these disruptions will cost airlines more than $11 billion in 2025, factoring in increased fuel expenses, maintenance costs, and engine leasing fees. These financial burdens stem from delayed deliveries and part shortages that complicate airline operations.
While Honeywell and other major suppliers have observed improvements in electronics manufacturing, difficulties persist in producing components such as castings and forgings for engines. Driggs noted that recovery is also underway in other segments, including engines for private jets, though these areas have not advanced as rapidly as electronics.
The supply chain’s inability to keep pace with growth across commercial air transport, business aviation, and defense continues to exert pressure on the industry. In response, competitors are investing in supply chain efficiencies and exploring technological innovations like artificial intelligence and 3D printing to alleviate ongoing challenges.
Financial Dynamics and Corporate Restructuring
IATA CEO Willie Walsh has expressed concerns regarding the pricing power of large aerospace suppliers, pointing to a disparity between airline operating margins—forecast at 6.7% for the current year—and the substantially higher margins reported by some engine manufacturers and suppliers, which can reach the mid-20% range. Honeywell’s aerospace division reported a 25.5% margin in the second quarter. While Driggs declined to comment directly on profit margins, he underscored the company’s commitment to supporting airline operators.
Earlier this year, under pressure from activist investor Elliott Management, Honeywell announced plans to restructure by splitting into three independent companies, including a spin-off of its aerospace business. This move aims to enhance focus and operational efficiency within its core segments.

Capital A Completes Sale of Aviation Business to AirAsia X

Four Gateway Towns to Lake Clark National Park

PRM Assist Secures €500,000 in Funding

Should Travelers Pay More for Human Support When Plans Go Wrong?

InterGlobe Aviation Shares Rise 4.3% Following January Portfolio Rebalancing

Key Market Segments Shaping Airline Route Profitability Software

Locatory.com Gains Traction Among Aviation MROs and Suppliers

JetBlue Flight Makes Emergency Landing Following Engine Failure

58 Pilots Graduate from Ethiopian University
