MRO & Manufacturing
GE Aerospace Improves Supply Chain and Boosts Airbus Engine Deliveries
GE Aerospace’s lean model improves supply chain efficiency, increasing LEAP engine production and supporting Airbus deliveries in 2025.
The global aviation industry has been navigating turbulent skies in recent years, largely due to persistent supply chain disruptions that began in the wake of the COVID-19 pandemic. These constraints have created significant headwinds for aircraft manufacturers and airlines alike, leading to production delays and a scarcity of spare parts. For European aerospace giant Airbus, a primary bottleneck has been the timely delivery of jet engines, a critical component for its popular A320neo family of aircraft. However, recent developments from GE Aerospace, a key engine supplier, signal a potential shift in this challenging environment. The company’s focused efforts to untangle its Supply-Chain are beginning to yield tangible results, offering a glimmer of hope for a more stable production landscape.
At the heart of this issue is CFM International, a joint venture between GE Aerospace and Safran Aircraft Engines, which produces the LEAP engine. These engines are a popular option for the Airbus A320neo and the exclusive powerplant for the Boeing 737 MAX. Production difficulties within the CFM partnership have had a cascading effect, impacting Airbus’s ability to meet its delivery targets and, consequently, the expansion plans of Airlines around the world. The financial repercussions of these delays are substantial, affecting the entire aviation ecosystem. Now, with GE Aerospace implementing strategic initiatives to overcome these hurdles, the industry is watching closely to see if this marks a turning point in the post-pandemic recovery.
In response to the ongoing supply chain pressures, GE Aerospace has deployed a proprietary lean operating model known as “FLIGHT DECK.” This internal strategy is designed to drive sustainable performance and foster measurable improvements by embedding lean principles and tools throughout the company’s operations. The initiative focuses on creating a more resilient and efficient supply chain by working closely with supplier partners to identify and eliminate bottlenecks. The early results of this approach are promising, demonstrating that a systematic and collaborative effort can indeed make a significant impact on complex Manufacturing challenges.
The “FLIGHT DECK” model has already produced concrete results. For instance, at GE’s facility in Pune, India, the lead time for certain LEAP engine components has been reduced by 50%. This is a testament to the effectiveness of the lean principles being applied. Furthermore, the company has reported a substantial increase in materials received from key suppliers, with a 35% rise compared to the previous year. This improvement in the flow of materials is a critical step in stabilizing production and ensuring a more predictable output of finished engines.
Perhaps one of the most significant indicators of progress is the improved reliability of GE’s suppliers. According to the company, critical suppliers are now delivering to their commitments 95% of the time, a rate that has doubled from a year ago. This increased predictability is a cornerstone of a healthy supply chain and is essential for ramping up production to meet the high demand from customers like Airbus. As GE Aerospace continues to refine its “FLIGHT DECK” model, these operational gains are expected to become more widespread, further strengthening the company’s ability to navigate the complexities of the global supply chain.
“We knew that we were going to have a slower start than any of us would have wanted in 2025, but… in terms of LEAP deliveries, growing in the 15-20% range continues to be what we believe we will do in 2025. It’s all about the supply chain dynamics… with the supply base, we’re really encouraged by the sequential improvement that we’ve seen in our deliveries from our critical suppliers.”, Larry Culp, GE Aerospace CEO (May 2025)
The operational improvements driven by GE Aerospace’s strategic initiatives are having a direct and positive impact on its ability to deliver engines to Airbus. GE Aerospace CEO Larry Culp recently announced that the company made significant progress in catching up on delayed jet engine deliveries to Airbus during the third quarter of 2025. This development is a welcome sign for Airbus, which has been grappling with engine shortages as it seeks to ramp up production of its narrowbody aircraft.
The numbers support this optimistic outlook. GE Aerospace reported a 40% year-over-year increase in the production of its LEAP engines in the third quarter of 2025. Looking at the full year, the company now anticipates a growth of over 20% in LEAP engine deliveries, an upward revision from the previously projected 15-20% range. This acceleration in production is a clear indication that the company’s supply chain fixes are taking hold and translating into a higher output of finished products.
This positive momentum is also reflected in GE Aerospace’s strong financial performance. The company reported a 26% increase in adjusted revenue to $11.3 billion for the third quarter of 2025. Adjusted earnings per share saw a 44% rise to $1.66, and free cash flow grew by 30% to $2.4 billion. Buoyed by these strong year-to-date results, GE Aerospace has raised its full-year financial guidance, signaling confidence in its ability to sustain this performance through the end of the year and beyond. The progress made by GE Aerospace in resolving its supply chain issues offers a beacon of hope for the entire aviation industry. By implementing its “FLIGHT DECK” operating model and fostering closer collaboration with its suppliers, the company has demonstrated a clear path toward stabilizing its production and catching up on crucial engine deliveries to Airbus. This not only benefits the two aerospace giants but also has a positive ripple effect on airlines and the traveling public, who stand to gain from a more predictable and robust aircraft supply chain.
Looking ahead, the lessons learned from this period of disruption will likely shape the future of aerospace manufacturing. The emphasis on lean principles, supplier collaboration, and operational resilience will become even more critical as the industry continues to navigate a complex and ever-changing global landscape. While challenges may still lie ahead, the proactive and strategic approach taken by GE Aerospace serves as a powerful example of how to turn adversity into an opportunity for innovation and growth.
Question: What is the “FLIGHT DECK” initiative? Question: How have GE’s supply chain improvements affected Airbus? Question: What are the key performance indicators of GE’s supply chain recovery?
GE Aerospace Turns the Tide on Supply Chain Woes, Boosting Airbus Deliveries
Strategic Initiatives and Operational Overhauls
The Ripple Effect: Improved Deliveries and Financial Performance
Conclusion: A Path to Stability and Future Growth
FAQ
Answer: “FLIGHT DECK” is GE Aerospace’s proprietary lean operating model designed to create sustainable performance and measurable improvements by integrating lean principles and tools across the company.
Answer: The improvements have allowed GE Aerospace to make progress in catching up on delayed jet engine deliveries to Airbus, particularly in the third quarter of 2025.
Answer: Key indicators include a 40% year-over-year increase in LEAP engine production in Q3 2025, a 35% increase in materials received from key suppliers, and a 95% on-time delivery rate from critical suppliers.
Sources
Photo Credit: Reuters
MRO & Manufacturing
AerFin Acquires Fourth Ex-Japan Airlines Boeing 777-300ER
AerFin adds a fourth Boeing 777-300ER from Japan Airlines to support global operators with used serviceable parts amid supply chain constraints.
This article is based on an official press release from AerFin.
Aviation asset specialist AerFin has announced the acquisition of a fourth Boeing 777-300ER previously operated by Japan Airlines. The move underscores the company’s ongoing investment in the popular widebody platform to support global operators facing supply chain constraints.
According to a company press release, the newly acquired aircraft recently arrived in Roswell, New Mexico. This addition marks the latest step in AerFin’s strategic effort to strengthen its capability to supply high-quality serviceable components to operators of the Boeing 777 worldwide.
As the aviation industry continues to navigate material shortages and delayed aircraft deliveries, the aftermarket for dependable long-haul aircraft parts remains robust. AerFin’s continued procurement of ex-Japan Airlines airframes highlights the enduring value of the 777-300ER in the secondary market.
The Boeing 777-300ER remains one of the most widely utilized and dependable long-haul aircraft in commercial service today. By acquiring a fourth airframe from Japan Airlines, AerFin is positioning itself to meet the sustained demand for used serviceable material (USM).
In its official statement, the company emphasized that its continued investment in the 777 platform reflects a strong confidence in the aircraft and the operators who rely on it daily.
“The 777-300ER remains one of the most dependable and widely used long-haul aircraft in service today. Our continued investment in this platform reflects our confidence in the aircraft and the operators who rely on it every day,” AerFin stated in the press release.
The arrival of the aircraft in Roswell, New Mexico, a well-known hub for aircraft storage and disassembly, suggests that the airframe will be processed to harvest critical components. These parts will then be distributed to support the maintenance and operational needs of active fleets.
AerFin specializes in buying, selling, leasing, and repairing aircraft, engines, and parts. According to company data, the firm serves over 600 customers globally, leveraging a vast warehousing network to ensure that critical components are readily available to its clients. According to the press release, AerFin already holds significant 777 inventory positioned across key locations in the Europe, Middle East, and Africa (EMEA), Americas, and Asia-Pacific (APAC) regions. This strategic distribution ensures that airlines, lessors, and maintenance, repair, and overhaul (MRO) providers have timely access to high-quality serviceable components when required.
With demand for 777 support remaining strong, AerFin continues to collaborate closely with its global partners to provide flexible asset solutions. By maintaining substantial inventory across its network, the company aims to deliver reliable and cost-effective material solutions that help keep fleets flying efficiently.
Customers seeking 777 components or tailored support options are encouraged by the company to explore its available inventory to meet their specific material requirements.
We note that the acquisition of a fourth ex-Japan Airlines 777-300ER by AerFin highlights a broader trend in the aviation aftermarket. As airlines extend the operational life of their existing widebody fleets due to new aircraft delivery delays from major manufacturers, we see the demand for high-quality used serviceable material (USM) surging. The 777-300ER, in particular, is a proven workhorse that is not retiring at the same rapid pace as older variants. By securing these assets, we believe companies like AerFin are bridging a critical supply chain gap, providing operators with cost-effective alternatives to new original equipment manufacturer (OEM) parts.
AerFin acquired a fourth Boeing 777-300ER that was previously operated by Japan Airlines.
According to the company’s press release, the aircraft recently arrived in Roswell, New Mexico.
The company states that the 777-300ER remains a dependable and widely used long-haul aircraft. Investing in these airframes allows AerFin to harvest and supply high-quality used serviceable material to airlines, lessors, and MROs globally.
Expanding the 777-300ER Portfolio
Global Supply Chain and Aftermarket Support
Meeting Industry Demand
AirPro News analysis
Frequently Asked Questions
What aircraft did AerFin recently acquire?
Where is the newly acquired aircraft located?
Why is AerFin investing in the 777-300ER platform?
Sources
Photo Credit: AerFin
MRO & Manufacturing
Korean Air and Busan Invest 200 Billion Won in Aerospace Facility
Korean Air and Busan commit 200 billion won to build a new aerospace plant for UAVs, aircraft parts, and military upgrades in Busan.
This article summarizes reporting by ChosunBiz. The original report may be subject to premium access; this article summarizes publicly available elements and public remarks.
Korean Air Lines and the City of Busan have officially signed a Memorandum of Understanding (MOU) for a 200 billion won (approximately $150 million USD) investment to construct a new drone and aerospace manufacturing facility. According to reporting by ChosunBiz on March 30, 2026, this agreement marks the largest aerospace investment the city has ever attracted.
The new plant will be situated within Korean Air’s existing Busan Tech Center in the Gangseo District. It is designed to serve as a multipurpose hub, focusing on next-generation commercial aircraft components, military aircraft upgrades, and advanced unmanned aerial vehicles (UAVs).
This development aligns with Busan’s strategic vision to establish a “Future Aviation Cluster” connected to the upcoming Gadeokdo New Airport, positioning the region as a central player in the global aerospace supply chain.
The planned facility will significantly expand Korean Air’s manufacturing footprint. Based on industry research data, the new plant will feature a total floor area of 52,892 square meters and will be constructed on a 36,363-square-meter idle site within the current Tech Center grounds. The existing Busan Tech Center, established in 1976, already covers an expansive 717,359 square meters and is recognized as Asia’s largest military aircraft maintenance facility.
The multipurpose plant will focus on three primary operational pillars: manufacturing AI-powered UAVs, producing structural components for next-generation civil aircraft, and conducting maintenance, repair, overhaul, and upgrade (MROU) services for military aircraft.
The signing ceremony was attended by key regional and corporate leaders, including Busan Mayor Park Heong-joon and Korean Air Lines Vice Chairman and CEO Woo Kee-Hong. During the event, corporate leadership emphasized the forward-looking nature of the project.
“This investment is a strategic decision to lead the global unmanned aircraft market and secure capabilities for next-generation aircraft manufacturing,” stated Woo Kee-Hong, Vice Chairman and CEO of Korean Air Lines.
Mayor Park emphasized the city’s commitment to the project, noting in public remarks that Busan will provide administrative and financial backing to ensure Korean Air serves as the anchor for the region’s future aviation cluster. While globally recognized as a commercial passenger airline, Korean Air operates as South Korea’s only fully integrated aerospace company. According to industry background data, the company has been manufacturing aircraft parts since 1977, supplying major aerospace firms like Boeing and Airbus with components such as 787 Dreamliner parts and A350 cargo doors.
The Aerospace Business Division has recently proven to be a highly profitable segment for the airline. This success is partly driven by substantial defense contracts, including a reported 1 trillion won project to upgrade UH-60 Black Hawk helicopters for the South Korean military.
Korean Air is aggressively expanding its footprint in the drone and artificial intelligence sectors. At the “Drone Show Korea 2026” held in Busan in late February, the company unveiled South Korea’s first physical AI-powered subsonic UAV, developed alongside U.S. defense technology firm Anduril Industries. Furthermore, the airline has made strategic investments in Pablo Air, a domestic startup specializing in swarm AI drone technology.
In the realm of Advanced Air Mobility (AAM), Korean Air is laying the groundwork for commercial air taxis. The company has partnered with Skyports for vertiport development and holds an exclusive arrangement to operate up to 100 “Midnight” eVTOL aircraft from Archer Aviation.
We view this 200 billion won investment as a critical physical manifestation of Korean Air’s strategy to diversify its revenue streams. By building a robust defense and technology portfolio, the airline is actively insulating itself from the traditional volatilities of the passenger travel market, such as fluctuating oil prices and exchange rates.
Furthermore, the timing of this MOU coincides with strong governmental backing for the sector. In March 2026, the Korea Aerospace Administration (KAA) announced a 200 billion won “New Space Fund” to support domestic aerospace companies. Korean Air’s expansion in Busan perfectly positions the company to capitalize on both regional infrastructure developments, like the Gadeokdo New Airport, and national strategic funding initiatives.
Korean Air is investing 200 billion won (approximately $150 million USD) in the new facility, marking the largest aerospace investment in Busan’s history.
The plant will be built on an idle 36,363-square-meter site within Korean Air’s existing Busan Tech Center in the Gangseo District. The plant will serve as a multipurpose hub to manufacture next-generation commercial aircraft parts, upgrade military aircraft, and produce future AI-powered unmanned aerial vehicles (UAVs).
Facility Specifications and Strategic Objectives
Expanding the Busan Tech Center
Leadership Perspectives
Korean Air’s Broader Aerospace Ambitions
Beyond Passenger Aviation
The Push into AI and Advanced Air Mobility
Market Context and Outlook
AirPro News analysis
Frequently Asked Questions
How much is Korean Air investing in the new Busan plant?
Where will the new aerospace plant be located?
What will the new facility produce?
Sources
Photo Credit: News1
MRO & Manufacturing
Helicopter Services Secures Three Airbus H125s for 2026 Delivery
Helicopter Services, Inc. pre-purchases three Airbus H125 helicopters for 2026 to offer turn-key solutions amid supply delays, following a custom delivery to GCI Communications in Alaska.
This article is based on an official press release from Helicopter Services, Inc.
In a strategic move to bypass ongoing aerospace supply chain delays, Texas-based Helicopter Services, Inc. (HSI) has announced the acquisition of three Airbus H125 helicopters scheduled for delivery in 2026. According to the company’s March 16, 2026, press release, these aircraft are being procured in advance to offer operators turn-key, mission-ready solutions without the standard manufacturer wait times.
The announcement follows closely on the heels of a major milestone for the maintenance, repair, and overhaul (MRO) provider: the mid-2025 delivery of a highly customized Airbus H125 to GCI Communications, Alaska’s largest telecommunications provider. That delivery underscored HSI’s growing footprint in specialized utility completions, outfitting aircraft for some of the most extreme environmental conditions in North America.
By securing these 2026 delivery positions, HSI aims to target operators across diverse sectors, including public safety, mosquito abatement, utility operations, aerial firefighting, and VIP transport. We are seeing a distinct trend where completion centers are taking on procurement risks to guarantee availability for their end-users.
According to the official announcement, HSI’s purchase of the three Airbus H125s is designed to streamline the acquisition process for its clients. Rather than an operator ordering a green aircraft from Airbus and waiting for production and subsequent outfitting, HSI will receive the aircraft directly and perform custom completions in-house.
Company leadership emphasized that this approach directly addresses the needs of operators who require immediate operational readiness.
“Securing these delivery positions allows HSI to better support operators seeking the proven performance and versatility of the Airbus H125. HSI is pleased to continue strengthening our relationship with Airbus Helicopters.”
Mike Crossland, General Manager, HSI
We view HSI’s decision to pre-purchase inventory as a notable strategic shift within the helicopter completion and MRO industry. Historically, completion centers waited for clients to procure their own aircraft before beginning customization work. By securing these three H125s, HSI is effectively acting as a specialized dealer. In a market where supply chain bottlenecks continue to hinder critical public safety and utility operations, offering a ready-to-fly, customized helicopter is a significant competitive advantage. This model is highly lucrative when applied to niche markets like aerial spraying or heavy-lift utility, where mission-specific outfitting is mandatory. The 2026 acquisition strategy is built upon HSI’s recent successes in complex utility completions. In mid-2025, the company delivered a custom-completed H125 to GCI Communications. According to project details released by HSI, the aircraft was specifically tailored to support GCI’s TERRA network.
Data provided in the company’s release notes that the TERRA network delivers internet and cellular service to 84 rural communities across Alaska. The infrastructure relies on 22 remote, self-sufficient towers. Because these sites are inaccessible by road, they require annual refueling via helicopter. HSI reports that the operation involves transporting over 110,000 gallons of diesel fuel annually to keep the network online.
To meet the rigorous demands of heavy utility work in freezing, remote terrain, HSI outfitted the GCI helicopter with several specialized components. According to the release, modifications included an advanced autopilot system, an Onboard Systems cargo hook designed for heavy external loads, and a DART Vertical Reference Floor Window, which provides pilots with enhanced downward visibility during precision long-line flying.
“GCI is a new client for Helicopter Services, Inc. They are the largest communications provider in Alaska and we outfitted their new H125 to meet operational demands and environmental conditions in which it will be flying.”
Ali Durham, Project Manager, HSI
The choice of the Airbus H125 for both the GCI delivery and the 2026 bulk order is rooted in the aircraft’s industry standing.
Formerly known as the AS350 B3e, the Airbus H125 is widely recognized as the leader in the single-engine helicopter market. Industry specifications highlight that it accounts for over 75% of all single-engine law enforcement deliveries in North America. Powered by a Safran Arriel 2D engine, the H125 boasts a maximum cruise speed of 137 to 140 knots and a range of approximately 340 nautical miles. Its utility capabilities are anchored by a sling capacity of 1,400 kg (3,086 lbs), making it highly effective for the external load lifting required by clients like GCI.
Founded in 1980 and based at the David Wayne Hooks Memorial Airport in Spring, Texas, HSI has steadily expanded its capabilities. According to company background data, HSI is an FAA Part 145 Certified Repair Station and holds the unique distinction of being the only company on the U.S. General Services Administration (GSA) marketplace focused solely on the helicopter industry.
To support its growing roster of clients, which includes the Houston Police Department and various municipal mosquito control districts, HSI expanded its facility in May 2025. The expansion increased their footprint to over 25,000 square feet, adding dedicated shop areas for sheet metal, composites, and avionics to handle the increased demand for MRO and air medical completions. Why is Helicopter Services, Inc. buying helicopters in advance? What is the Airbus H125 used for? What customizations were made for the GCI Communications helicopter?
Helicopter Services, Inc. Secures Three Airbus H125s for 2026, Following Major Telecom Delivery
Proactive Procurement for 2026 Deliveries
AirPro News analysis
Conquering Alaskan Extremes with GCI Communications
The TERRA Network Mission
Customizing for the Cold
The Airbus H125 and HSI’s Growing Footprint
The H125 Workhorse
HSI Facility Expansion
Frequently Asked Questions
According to HSI, pre-purchasing aircraft allows the company to bypass standard manufacturer wait times. This enables them to offer clients fully customized, turn-key helicopters much faster than traditional procurement methods.
The Airbus H125 is a versatile single-engine helicopter used heavily in public safety, utility operations, aerial firefighting, and VIP transport. It is particularly noted for its high-altitude performance and heavy external sling capacity (up to 3,086 lbs).
To support remote telecom tower refueling in Alaska, HSI equipped the GCI helicopter with an autopilot system, a DART Vertical Reference Floor Window for precision flying, and an Onboard Systems cargo hook for heavy utility lifting.
Sources:
Photo Credit: Helicopter Services, Inc.
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