LE BOURGET—The head of Air France KLM Engineering & Maintenance (AFI KLM E&M) sees supply chain problems affecting the broader industry lasting until 2025.
AFI KLM E&M is working on its first Pratt & Whitney PW1500G engine, which powers the Airbus A220. The MRO is expecting to grow to work on at least 80 of the PW1500G per year.
Referring to the parts shortages and disruption that has been hitting the industry at large, Anne Brachet, executive vice president at AFI KLM E&M, says, “Our feeling is that we’ll start to see a real positive trend in 2024, but back-to-normal will be not before 2025.”
But for the company itself, the outlook is positive. “We are in a good market with growth ... [and] well positioned on all new platforms. We are investing in all new platforms. Activity is back ... the big orders of aircraft are ongoing,” Brachet says during a press conference at the Paris Air Show. “That’s very good news for everybody, but also very challenging for everybody.”
“On the current platforms and the new platforms there are big developments to come," Brachet adds.
AFI KLM E&M is strongly developing its activity around the Airbus A220, Brachet says, and has recently signed a deal with JetBlue for the support of more than 200 components of its A220 fleet, of which the airline has ordered 100.
“There is a huge need for capacity because of the issues they are facing now. We can grow—pretty fast,” Brachet says. The company expects to grow its activity and is looking at least 80 per year, she adds. “A minimum of 80—Pratt is pushing [us to] do more,” she says, noting that the group has to balance strong demand from other engine programs.
Pratt & Whitney said in November that AFI KLM E&M would be joining its global network of maintenance providers for the PW1500G engines.
Industry-wide, delays relating to maintenance and parts shortages for the Pratt & Whitney engines that power the A220 have been causing operational issues for airlines.
“We are flying this aircraft but we are developing all the activity around this aircraft, the airframe and the engine—we just got the first engine in our shop—and of course the component activity,” Brachet says, as part of the Pratt & Whitney network.
Air France is in the process of receiving 60 A220s that it has on order as it moves ahead with short- and medium-haul fleet replacement.
Brachet says the business is aiming for a return to pre-COVID levels of operating in profit in 2024, despite higher working capital linked to the current supply chain issues affecting the industry.
“Today we are facing a major supply chain issue. We try as an MRO to manage that ... But there is a tension in the market,” Brachet says.
She adds: “The supply chain situation affects our results. But we do a lot to manage and to find a way to manage the situation.”
Referring to the challenge of hiring and training enough skilled staff in the industry, Brachet says AFI KLM E&M is making a big effort to attract more young people to the group and to diversify its workforce, including by emphasizing sustainability and digital credentials, as well as through initiatives with schools.
“We see worldwide that there is a lack of resources," she says, "[and] we need to invest in young people because it’s really the future.”
