Airbus chief executive Guillaume Faury believes the airframer has sufficient protection in titanium supply, following the imposition of sanctions on the Russian market.
Speaking during a first-quarter briefing, Faury insisted that Airbus’s operations on the supply side were protected in the “short to medium term”. The company is looking to increase production of its A320 range to 75 aircraft monthly in 2025.
“This [protection] gives us time to secure alternative solutions where needed,” adds Faury, stating that the company was “developing secondary sources” in the titanium sector.
Airbus states that the Ukraine conflict has increased its exposure to supply-chain disruption risk, with some of its titanium sourced both directly and indirectly from Russia.
“While geopolitical risks are integrated into the company’s titanium sourcing policies, the impact of [the conflict] on the company’s ability to source materials and components and any future expansion of sanctions is being reviewed,” it adds.
Airbus is to remarket two A350-900s which had been set for delivery to Aeroflot before the sanctions regime – which covers supply of aircraft, spares, support and software – prevented the jets from being delivered.
Although the aircraft were previously recorded as sold by the end of December 2021, with transfer-of-title achieved, the A350s could not be physically moved. The revenues have been “derecognised” in the first quarter, Airbus states.
Faury insists the airframer’s direct exposure to Russian customers is “relatively limited” and that the situation with the Aeroflot aircraft is “really exceptional”.
But Airbus has activated a crisis-management cell to address the potential impacts of the conflict on areas including cybersecurity, logistics, inflation, component sourcing, and energy prices. It recorded an earnings charge of around €200 million in its first-quarter results.
It adds that the situation also exposes Airbus’s space division to risks of Soyuz business interruption, with a possible effect on future Arianespace launches.