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Update: GE Jet Engine-Building Joint Venture Reportedly Straddling Difficult Position Between Airbus, Boeing
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Update: GE Jet Engine-Building Joint Venture Reportedly Straddling Difficult Position Between Airbus, Boeing
Jun 25, 2024 3:04 PM

05:40 PM EDT, 06/25/2024 (MT Newswires) -- (Updates with Airbus' response in the fourth paragraph.)

GE Aerospace (GE) and Safran Aircraft Engines' aircraft engine maker joint venture CFM International may be struggling to keep up with demand for jet engines amid a host of difficulties roiling the commercial aviation business in recent months, according to media reports.

Perhaps chief among the problems for CFM has been the spillover effects of US aircraft builder Boeing's ( BA ) recent efforts to resolve safety issues exacerbated by a door plug blowing out on a Boeing 737-9 Max narrowbody jet soon after takeoff in January. Rival builder Airbus initially tried to take advantage of Boeing's ( BA ) situation by ramping up its production goals but may now be hitting a snag because that would require CFM to take sides in a fight between its primary customers, Reuters said on Tuesday, citing unnamed industry sources.

Airbus on Monday trimmed its 2024 production and profit forecasts and only issued a modestly ambitious forecast for 2025. Complicating its outlook are recent supply-chain bottlenecks at RTX's (RTX) Pratt & Whitney unit, which also builds jet engines for Airbus as well as Boeing ( BA ), according to media reports.

"Airbus doesn't comment on confidential discussions with suppliers," a company spokesperson said in an email to MT Newswires.

Representatives for GE Aerospace and Safran, which each own a 50% share of CFM, did not immediately respond to requests for comment from MT Newswires.

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