Airbus Reviews A380 Supply Chain

This piece of news that Airbus is going through a "full review" of its A380 supply chain hit the wire after my post on the A&D market earlier this morning. According to the announcement, the platform provider "announced a full review of the supply chain for its A380 superjumbo following production difficulties which have led to a delay in deliveries ... Airbus's new Chief Executive Christian Streiff told a news conference at the Farnborough International Airshow on Monday that the firm aimed to give customers a precise, new timetable for deliveries as soon as possible."

Production and supply-related delays have already resulted in a turnover in the executive ranks at Airbus, but it remains to be seen whether supply chain issues with the world's largest airliner will bring down the entire organization. Even with the deep pockets of the European governments to bail out Airbus, one wonders if the world would be better off letting the current incarnation of Boeing's chief competitor go the way of the steam engine. If it does, it would probably go down as the single greatest -- and most costly -- supply chain failure in history. But in the meantime, it's still a lesson we can all learn from.

Jason Busch

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