It’s a common refrain for aviation industry manufacturers: supply chain issues, coupled with complex manufacturing processes mean long lead times and, often, delivery delays.
And while this extended timeline isn’t new, a recent report suggests that there’s an emerging reason behind that we haven’t really seen before.
CNBC says that increasingly luxurious first-class seats are holding up airplane deliveries.
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The “big 2” in commercial airliners held earnings calls in late February and both illustrated similar issues.
Boeing’s CEO Kelly Ortberg said 787 Dreamliners at its South Carolina factory were sitting in wait of a seat certification process to be completed, because of changes in the cabinets and doors for business and first class. Ortberg called them “pretty complex systems” that were taking “longer than expected.”
Experts say the changes likely allude to added extra inches in areas where airlines can demand much higher ticket prices – and it’s not just a Boeing problem.
Airbus, the European company with the other half of the commercial plane duopoly, is having similar issues. CEO Guillaume Faury told analysts that delays in seats and “monuments” like closets and galleys were “delaying the time at which [the company] can deliver a plane fully completed.”
According to CNBC, a business-class seat can have about 1,500 parts. Newest models often feature seats that recline into beds or even feature their own door and customers are increasingly demanding even more comforts, including extra space.
And if you’re wondering whether it’s all worth it, take this for evidence: Delta airlines said that, of its last year’s sales, just 43% came from the main cabin. The remaining 57% of its revenue was derived from premium seat buyers and its loyalty program.
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It's a common refrain for aviation industry
manufacturers.
00:03.880 --> 00:08.800
Supply chain issues coupled with complex
manufacturing processes mean long lead times
00:08.800 --> 00:12.949
and often delivery delays.
And while this extended timeline isn't new,
00:13.079 --> 00:16.639
a recent report suggests that there's an
emerging reason behind it that we haven't
00:16.639 --> 00:20.389
really seen before.
CNBC says that increasingly luxurious.
00:20.629 --> 00:23.889
Class seats are holding up airplane deliveries.
00:24.139 --> 00:27.940
The big two in commercial airliners held
earnings calls in late February,
00:27.979 --> 00:33.779
and both illustrated similar issues.
Boeing CEO Kelly Ortberg said 787 Dreamliners
00:33.779 --> 00:39.540
at its South Carolina plant were sitting in
wait of a seat certification process to be
00:39.540 --> 00:41.029
completed because of changes in.
00:41.250 --> 00:45.729
Indoors for business and first class.
Ortberg called them pretty complex systems that
00:45.729 --> 00:50.360
were taking longer than expected.
Experts say the changes likely allude to added
00:50.360 --> 00:54.759
extra inches in areas where airlines can demand
much higher ticket prices,
00:55.080 --> 00:59.439
and it's not just a Boeing problem.
Airbus, the European company with the other
00:59.439 --> 01:01.759
half of the commercial plane Duopoly.
01:02.009 --> 01:06.639
Is having similar issues.
CEO Guillaume Fourer told analysts that delays
01:06.639 --> 01:12.080
in seats and monuments like closets and galleys
were delaying the time at which the company can
01:12.080 --> 01:14.089
deliver a plane fully completed.
01:14.440 --> 01:18.870
According to CNBC, a business class seat can
have about 1500 parts.
01:19.209 --> 01:23.790
Newest models often feature seats that recline
into beds or even feature their own door,
01:24.080 --> 01:26.680
and customers are increasingly demanding even
more comforts,
01:26.879 --> 01:29.639
including extra space.
And if you're wondering whether it's all.
01:29.745 --> 01:31.764
Worth it.
Take this for evidence.
01:32.175 --> 01:37.684
Delta Airlines said that of its last year's
sales, just 43% came from the main cabin.
01:37.815 --> 01:42.684
The remaining 50% of its revenue was derived
from premium seat buyers and its loyalty
01:42.684 --> 01:45.014
program.
I'm Anna Wells, and this is manufacturing now.
