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SMBC Aviation CEO Calls on Airbus to Address Supply Chain Challenges

SMBC Aviation CEO Urges Airbus to Address Supply Chain and Geopolitical Challenges
Peter Barrett, CEO of SMBC Aviation—one of the world’s largest aircraft leasing companies—has called on Airbus and other manufacturers to resolve persistent supply chain disruptions and ensure timely aircraft deliveries. Speaking at the Airline Economics conference on Monday, Barrett emphasized the critical need for predictability in aircraft production following years of industry instability.
Barrett acknowledged the progress made by Airbus and its suppliers but stressed that the current situation remains insufficient. “We all understand the challenges that COVID brought, but ultimately people need a degree of predictability and certainty,” he said, addressing the new head of Airbus’ jet division during his first appearance at the event. Barrett also extended his concerns to engine manufacturers such as Pratt & Whitney and CFM, whose recent difficulties have further contributed to delivery delays.
Geopolitical Risks Compound Industry Challenges
Beyond supply chain issues, Barrett highlighted emerging risks that could exacerbate challenges for Airbus and the wider aviation sector. He pointed to the potential logistical and financial repercussions of U.S. protectionist policies and escalating trade tensions between the United States and China. These geopolitical factors, he warned, threaten to complicate efforts to stabilize production and meet delivery commitments.
Airbus has already been compelled to reduce its delivery targets due to problems including defective fuselage panels and ongoing engine supply constraints. Despite these setbacks, the company has maintained its financial objectives, supported in part by advances in a commercial cost-cutting initiative. Nevertheless, the outlook remains uncertain as market participants closely monitor how Airbus and its competitors will navigate persistent supply chain disruptions amid a shifting global trade landscape.
Barrett’s remarks underscore the mounting pressure on aircraft manufacturers to restore reliability and confidence in deliveries, as airlines and lessors seek greater certainty in a market still recovering from prolonged turbulence.

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