Oct 15 (Reuters) - The production of electronics for

aviation is a bright spot in the aerospace supply chain, whereas

manufacturing of some parts still remains challenging, a senior

executive at supplier Honeywell ( HON ) told Reuters.

While accessing some products like castings and forgings

used for engine manufacturing remains difficult, Honeywell ( HON ) and

other large aerospace suppliers in recent months have pointed to

signs of improvement in the supply chain.

Honeywell ( HON ) supplies products including avionics and flight

control systems to Boeing ( BA ), Airbus and Chinese

planemaker COMAC, and ground-based power units to airlines.

But shortages of labor and materials like aluminum, steel

and superalloys continue to dog the aerospace industry, with

airlines facing more than $11 billion in extra costs due to

various supplier disruptions this year, the International Air

Transport Association (IATA) said on Monday.

Honeywell Aerospace Chief Commercial and Strategy Officer

Ben Driggs said in an interview on Friday that products like

avionics and navigation equipment were the most improved areas

within the supply chain because they relied less on the

availability of raw materials.

"So avionics, navigation, satellite communications, that's

where we've seen the most improvement," Driggs said.

"It has less raw material constraints," he added, without

disclosing the name of any particular material.

The supply chain has struggled to meet growth from all three

segments of the aerospace market: commercial air transport,

business aviation and defense.

Driggs said other parts of the supply chain including

engines for private jets were also improving, but not as much as

electronics.

IATA CEO Willie Walsh has questioned the influence large

suppliers exert over the prices of parts, pointing to a gap

between airline operating margins, forecast at 6.7% this year,

and margins of some engine makers and suppliers in the mid-20%

range.

Honeywell's ( HON ) aerospace division reported a 25.5% margin in

the second quarter.

Driggs declined to comment on margins, but said it was

important for suppliers to support airline operators.

After pressure from activist investor Elliott Management,

Honeywell ( HON ) in February announced plans to split into three

independent companies, including a spin-off of its aerospace

business.