MRO & Manufacturing
Safran Progresses on Engine Delivery Recovery and Expands in Morocco
Safran addresses LEAP engine delays impacting Airbus with increased deliveries and a new Morocco facility to boost production capacity.
Safran’s Engine Delivery Recovery: Progress, Challenges, and Strategic Expansion
The aerospace sector is a critical pillar of global transportation and commerce, relying on the seamless coordination of manufacturers, suppliers, and airlines. In recent years, disruptions in this finely tuned ecosystem have underscored the importance of robust supply chains and agile manufacturing processes. One of the most prominent examples has been the engine delivery delays affecting Airbus, with French engine maker Safran at the center of efforts to resolve these challenges.
Safran’s CFM LEAP engines, produced in partnership with GE Aerospace, power the widely popular Airbus A320neo family of aircraft. Production bottlenecks, exacerbated by supply chain fragility, technical hurdles, and labor disruptions, have led to a backlog of finished Airbus jets awaiting engines. The situation has drawn close scrutiny from industry stakeholders, investors, and airlines alike, as both Safran and Airbus strive to meet ambitious delivery targets for 2025 and beyond.
Amid these challenges, Safran’s CEO Olivier Andriès has expressed renewed confidence in the company’s recovery trajectory. His assertion that Safran is “on a good path” to catch up with engine delays by the end of October 2025 offers a cautiously optimistic outlook for the sector. This article examines the root causes of the delays, the progress made, and the strategic initiatives shaping the future of engine manufacturing.
Root Causes and Impacts of Engine Delivery Delays
Supply Chain Disruptions and Technical Challenges
The COVID-19 pandemic and its aftermath have exposed vulnerabilities in global supply-chains, particularly in industries reliant on specialized materials and components. For Safran, the recovery from pandemic-induced disruptions has been slow, with shortages of raw materials and key engine parts hampering production rates. The aerospace supply chain’s complexity, involving hundreds of suppliers across continents, means that even minor delays can cascade into significant production challenges.
Beyond supply chain issues, the LEAP engine itself has presented technical hurdles. Designed for improved fuel efficiency and lower emissions, the LEAP engine operates at higher temperatures, which has led to durability concerns, especially in hot and dusty environments. Premature wear on high-pressure turbine (HPT) blades necessitated design upgrades and retrofits, further slowing the pace of engine deliveries to Airbus.
Labor disruptions compounded these technical and supply chain issues. A strike at a Safran facility earlier in 2025 temporarily halted production, adding to the backlog. The cumulative effect of these challenges resulted in a significant number of “gliders”, fully assembled Airbus aircraft parked and waiting for engines. At its peak, this number reached approximately 60, disrupting Airbus’s delivery schedules and impacting airline customers awaiting new aircraft.
“The most challenging part of the aerospace supply chain today is engines,” remarked Airbus CEO Guillaume Faury in September 2025, reflecting the critical role of engine availability in meeting production targets.
Airbus Delivery Performance and Market Implications
Despite these setbacks, Airbus has demonstrated resilience in ramping up deliveries. As of September 2025, Airbus reported a record 73 jet deliveries for the month, signaling that engine supply constraints are beginning to ease. Over the first nine months of 2025, the company delivered 507 aircraft and aims to reach an annual target of approximately 820, requiring 313 additional deliveries in the fourth quarter.
The reduction in the “glider” fleet is a positive indicator of progress. While Airbus and Safran have not disclosed the current number of undelivered aircraft awaiting engines, reports confirm a significant decrease from earlier in the year. This improvement is attributed to Safran’s efforts to resolve technical issues and accelerate engine production, as well as coordinated action across the broader supply chain.
The delays, however, have wider market implications. Competitors may seek to capitalize on the supply chain challenges facing Airbus and Safran, while airlines must adjust their fleet plans and delivery schedules. The situation has also prompted increased demand for aftermarket services, as airlines extend the operational life of existing aircraft while awaiting new deliveries.
“I have always said that we wanted to catch up on the delays by the end of October and I think we are on a good path,” stated Safran CEO Olivier Andriès on October 13, 2025, underscoring the company’s determination to resolve the backlog.
Safran’s Strategic Response and Future Outlook
Operational Recovery and Financial Resilience
Safran’s leadership has taken a proactive approach to address the challenges, implementing both immediate and long-term solutions. The company forecasts a 15-20% increase in total LEAP engine deliveries for 2025 compared to the previous year, reflecting its commitment to restoring normalcy to Airbus’s production flow.
Financially, Safran has managed to weather the storm, buoyed by strong performance in its aftermarket services division. As airlines contend with delayed deliveries, demand for spare parts and maintenance has surged, providing a buffer for Safran’s revenues. In a sign of confidence, the company recently raised its financial outlook for 2025, citing improved operational resilience and ongoing investments in capacity expansion.
Industry analysts, while encouraged by recent progress, remain cautious. Meeting Airbus’s ambitious delivery targets will require sustained improvements in engine output and continued stability across the supply chain. The analyst firm Forecast International has noted that, even with increased production rates, achieving the full-year delivery goal remains a formidable challenge.
Strategic Expansion: The Morocco Industrial Complex
In a move designed to bolster long-term capacity and de-risk its supply chain, Safran has announced a major investments in a new industrial complex in Casablanca, Morocco. This facility will serve as Safran’s only LEAP-1A engine assembly line outside of France and is central to the company’s future production strategy.
The Casablanca complex will house both an assembly and testing line for the LEAP-1A engine, used exclusively on the Airbus A320neo family, and a maintenance, repair, and overhaul (MRO) facility. Once operational in 2028, the assembly line is expected to produce up to 350 engines per year, accounting for roughly 25% of Safran’s Airbus-related output. The MRO shop will handle up to 150 engines annually, supporting both new deliveries and aftermarket needs.
Safran’s investment in Morocco exceeds 350 million euros and is projected to create 900 jobs by 2030. This expansion not only enhances Safran’s global footprint but also strengthens the company’s ability to respond to future demand surges and unforeseen disruptions. By diversifying its manufacturing base, Safran aims to achieve a global production increase to approximately 2,500 LEAP engines per year from 2028 onward.
“All suppliers are prepared to support the 2025 delivery goals and all aircraft required to meet the target are already in assembly,” said Airbus Operations Chief Florent Massou dit Labaquère in October 2025, highlighting the coordinated effort across the supply chain.
Conclusion: Lessons Learned and the Road Ahead
The recent engine delivery delays have underscored the interconnectedness and complexity of the aerospace supply chain. Safran’s experience highlights the importance of robust contingency planning, continuous technical innovation, and strategic investments in capacity expansion. While the immediate crisis appears to be abating, sustained vigilance and collaboration will be essential to prevent future disruptions.
Looking forward, Safran’s strategic expansion in Morocco and its commitment to operational excellence position the company to better serve Airbus and the broader aviation market. As global air travel demand continues to recover and grow, the lessons learned from this episode will inform future approaches to supply chain management and manufacturing agility within the aerospace industry.
FAQ
What caused the engine delivery delays at Safran?
The delays were due to a combination of supply chain disruptions following the pandemic, technical issues with the LEAP engine’s high-pressure turbine blades, and labor strikes at a Safran facility.
How has Airbus been affected by these delays?
Airbus experienced a backlog of finished aircraft, known as “gliders,” awaiting engines. This impacted their delivery schedules and required coordinated efforts to resolve.
What is Safran doing to prevent future delays?
Safran is investing in a new engine assembly and maintenance complex in Morocco, expanding its production capacity and diversifying its manufacturing base to reduce future risks.
Sources: Reuters
Photo Credit: Reuters
MRO & Manufacturing
BeauTech and Lufthansa GEM Sign 10-Year Engine Leasing Deal
BeauTech Power Systems and Lufthansa Group’s GEM sign a 10-year engine leasing framework covering CF34, CFM56, LEAP, and GTF platforms.
On June 22, 2026, Dallas-based BeauTech Power Systems, LLC and Group Engine Management GmbH (GEM), the dedicated engine management company of the Lufthansa Group, signed a 10-year engine leasing framework agreement. The decade-long contract secures long-term spare engine capacity for the European airline group across multiple engine platforms, reflecting a broader industry shift toward treating spare engines as structural necessities rather than short-term fixes.
In a press release announcing the deal, BeauTech stated the agreement covers a wide range of engine types, including the GE Aerospace CF34, CFM International CFM56 and LEAP, and the Pratt & Whitney Geared Turbofan (GTF). The partnership aims to support operational flexibility for Lufthansa Group airlines amid ongoing global supply chain constraints and extended maintenance turnaround times.
Securing capacity in a constrained market
Michael Kaye, Managing Director of GEM, emphasized the operational importance of the agreement for maintaining schedule reliability across the group’s fleets.
“Access to reliable engine capacity is an important component of supporting the operational requirements of the Lufthansa Group airlines. This agreement strengthens our ability to respond to changing fleet and maintenance needs while working with a trusted and experienced leasing partner,” Kaye said.
Tobias Konrad, Chief Operating Officer of BeauTech, noted that the Lufthansa Group has been a partner since BeauTech was founded in 2011. He stated the agreement underscores the trust built between the organizations over years of successful cooperation.
Strategic shift in spare engine planning
The extended duration of the framework agreement highlights a changing approach to engine management across the commercial aviation sector. According to reporting by Aviation Week, airlines are increasingly utilizing engine leasing to keep aircraft in service while their own powerplants undergo scheduled overhauls or unexpected repairs.
Speaking to Aviation Week, Konrad explained that BeauTech is positioned to support GEM whenever additional capacity is needed, including during Aircraft on Ground (AOG) situations or fast-turn lease requirements.
Konrad characterized the 10-year timeline as a sign of prudent planning by GEM, which already maintains a substantial internal spare engine pool. He noted that the decision to secure contracted external access over a decade reveals how top market players view spare-engine availability, describing it to the publication as “a structural feature of this decade, not a short-term squeeze.”
Konrad also told Aviation Week that leasing green time, which refers to the remaining operational life of an engine before its next scheduled overhaul, has evolved into a genuine fleet strategy rather than just a temporary fix for engine removals. Lessors have responded to this demand by developing more tailored leasing solutions.
AirPro News analysis
We view this 10-year framework agreement as a clear indicator that major airline groups do not expect engine supply-chain bottlenecks to resolve in the near term. By locking in a decade of access to spare engines across both legacy platforms like the CFM56 and CF34, as well as new-generation LEAP and GTF engines, the Lufthansa Group is hedging against prolonged maintenance delays.
The inclusion of new-generation engines is particularly notable. Both the LEAP and GTF programs have faced well-documented durability and supply chain challenges, increasing the global demand for spare units. This agreement positions BeauTech as a critical buffer for GEM, ensuring that Lufthansa Group airlines can maintain schedule reliability even as global MRO turnaround times remain elevated.
Sources: BeauTech Power Systems, LLC
Photo Credit: BeauTech Power Systems
MRO & Manufacturing
Safran Nacelles Delivers 5000th A320neo Nacelle
Safran Nacelles hits 5,000 A320neo nacelles with 100% on-time delivery and plans to scale output to 1,000 units per year.
Safran Nacelles has delivered its 5,000th nacelle for the Airbus A320neo program, maintaining a 100 percent on-time delivery rate as the manufacturer prepares to scale production to 1,000 units annually.
The milestone was celebrated on June 30, 2026, at Safran’s Colomiers facility near the Airbus final assembly line in Toulouse, France. According to a company press release, the achievement highlights the rapid production ramp-up required to support Airbus amid ongoing global Supply-Chain pressures.
Scaling production and supply chain performance
Safran Nacelles, working in conjunction with Middle River Aerostructure Systems, has insulated its A320neo nacelle output from broader industry bottlenecks. The company reported a flawless on-time Delivery record for the program to date, a metric it intends to protect as output increases.
What we are experiencing with the A320neo is unprecedented. This 5,000th Nacelle marks an important milestone and demonstrates the exceptional momentum of the programme. As demand continues to grow, we are preparing to produce up to 1,000 nacelles per year to support Airbus and Airlines around the world.
The statement from Safran Nacelles CEO Vincent Caro underscores the pressure on Tier 1 suppliers to match the pace of aircraft original equipment OEMs as they work through historic backlogs.
Airbus delivery targets and backlog pressure
The push for 1,000 nacelles per year aligns directly with Airbus’s aggressive production schedules. The European airframer is targeting 870 Commercial-Aircraft deliveries in 2026. Through the end of May 2026, Airbus had handed over 262 aircraft to 68 customers, including 81 deliveries in May alone.
The Airbus A320 family recently surpassed 20,000 total orders, cementing its status as a primary revenue driver for both Airbus and its supply chain partners. Fulfilling this backlog requires synchronized output across all major component providers, making nacelle availability a critical factor in final assembly.
AirPro News analysis
We view Safran’s 100 percent on-time delivery rate as a notable outlier in an aerospace supply chain otherwise defined by chronic delays and material shortages. Achieving a production rate of 1,000 nacelles annually will test the resilience of Safran’s sub-tier suppliers. If the company can maintain its delivery metrics at that volume, it will remove a critical potential chokepoint for Airbus as the airframer chases its 870-aircraft target for 2026.
Sources: Safran Group
Photo Credit: Safran Group
MRO & Manufacturing
FTG Opens First India Facility in Hyderabad Aerospace Park
Firan Technology Group opened its Hyderabad facility on June 29, 2026, producing avionics and cockpit electronics for global OEMs.
Firan Technology Group Corporation (FTG) officially opened its first Indian manufacturing facility on June 29, 2026, establishing a new production hub for cockpit and avionics components within the GMR Aerospace and Industrial Park in Hyderabad.
Announced via a company press release, the FTG Aerospace Hyderabad facility culminates a three-year strategic effort to expand the Canadian manufacturer’s global footprint. The new site provides low-cost capacity to support Western demand for commercial and defense aerospace products while mitigating risks associated with restrictive trade policies in other global markets.
Strategic expansion and local integration
The customized Built-to-Suit unit was developed by GMR Hyderabad Aviation SEZ Limited (GHASL). It is situated within a 277-acre aerospace and industrial park, integrating FTG into an established airport-led ecosystem. The facility will focus on designing and manufacturing high-reliability printed circuit boards (PCBs), illuminated cockpit products, electronic assemblies, and cockpit interface electronics for global original equipment manufacturers (OEMs).
In the press release, FTG President and CEO Brad Bourne described the opening as a strategic milestone for the company.
“GMR’s world-class Built-to-Suit infrastructure and integrated, airport-led ecosystem give us an ideal platform to deliver the high-reliability avionics and cockpit interface electronics our global OEM customers depend on,” Bourne stated.
Bourne also noted that significant work remains to fully operationalize the site. The company is currently focused on adding and training staff, securing necessary industry certifications, obtaining customer approvals, and ramping up production.
Aligning with domestic manufacturing initiatives
The Hyderabad operation brings FTG’s manufacturing presence to four countries, joining existing facilities in Canada, the United States, and China. The expansion aligns directly with the Indian government’s “Make in India” policy, positioning the company to serve both domestic defense requirements and international export markets.
Aman Kapoor, CEO of GMR Airport Land Development, stated that the launch marks a significant step in building a globally competitive aerospace manufacturing ecosystem in the region. Kapoor emphasized that FTG’s presence will strengthen domestic supply chains and advance indigenization efforts, further cementing Hyderabad as a primary hub for aerospace and industrial innovation.
AirPro News analysis
We view FTG’s expansion into India as a calculated hedge against ongoing geopolitical and trade friction. By establishing a secondary low-cost manufacturing base outside of China, FTG provides its Western aerospace and defense customers with a more resilient supply chain. The choice of Hyderabad specifically leverages an existing aerospace cluster, which should help accelerate the complex certification and approval processes required for aviation electronics production.
Sources: Firan Technology Group Corporation
Photo Credit: The Hindu
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