Asian airlines say supply chain woes are giving them a bad rap

Asian airlines say supply chain woes are giving them a bad rap

Malaysia Airlines says the desire for fatter profit margins is one of the causes of the supply shortages.

Malaysia Airlines has been hit by well-publicised in-flight disruptions and delays in new jet orders have left it short of several aircraft. (File pic)
BRUNEI:
The heads of some of Asia’s biggest airlines said the long delays in the deliveries of brand new aircraft and supplies of spare parts are unfairly forcing them to deal with operational challenges, and consequently angry customers.

Speaking at the Association of Asia Pacific Airlines (AAPA) annual meeting in Brunei, Malaysia Airlines said the desire for fatter profit margins is one of the causes for the shortages, while Singapore Airlines Ltd said industry lobby groups such as the International Air Transport Association and AAPA weren’t doing enough to represent their members.

Airlines across the world have been speaking out about how delays in jet deliveries from Airbus SE and US rival Boeing have forced them to hold onto older, less fuel-efficient aircraft for longer while spare part shortages have meant aircraft have been parked in hangars awaiting repair for greater lengths of time.

“Who is frustrated? Airline CEOs are, while others make money from us,” Malaysia Airlines CEO Izham Ismail said on stage today.

Izham said that while airlines typically have to make do with low single-digit margins, the rest of the supply chain was focused on double-digit profitability. “Is it fair?” he asked.

Malaysia Airlines has been hit by well-publicised in-flight disruptions to its aircraft, while delays to new jet orders leave it short of several aircraft.

Izham said that pre-Covid-19, it took just 25 days to service his aircraft engines – a figure that has now jumped to over 100 days.

“The planemakers have to get their act together,” Air Astana CEO Peter Foster said.

“We’re the ones who face the customers. We’re the ones who face the government agencies,” he said.

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