The Association of Asia Pacific Airlines (AAPA) laments the lack of a “clear path” in resolving what it called an “overhanging supply crisis” in the airline sector, as it calls on governments and suppliers to address these challenges.
In a statement issued 13 May, the association warns that growing economic uncertainty – stemming from the US government’s tariff policies and retaliatory measures – will “further complicate” efforts to address supply chain issues.
The association states: “Aircraft and engine production is a global effort, relying on components sourced from many different markets. The imposition of new tariffs and retaliatory measures threaten to drive up costs and slow production further — costs and delays that will ultimately be borne by airlines and their customers.”
Since the Trump administration announced sweeping tariffs – then subsequently paused some of them – the global economy has been under a cloud, with airlines bracing for likely impact.
In late April, the AAPA warned that demand could soften in the near term amid economic uncertainty.
AAPA director general Subhas Menon called the tariffs “barriers” which were “dragging everyone down”.
He adds: “Aviation supply chains were built on the efficiencies of open markets and international cooperation. Now, that framework is being wholly undermined.”
Menon points out that capacity constraints still plague the region’s operators, which could “stall” growth. Airlines face growing aircraft delivery delays, even as orderbooks for next-generation aircraft grow.
Menon notes that the airline sector’s sustainability goals – to achieve net-zero emissions by 2050 – are “under threat” if supply chain issues persist.
“Delayed deliveries mean airlines must keep older, less efficient aircraft in service, without any emissions reductions,” Menon states.
The AAPA director general also points out that the “limited availability” of sustainable aviation fuels (SAF) is “compounding” the challenges facing sustainability efforts.
“Demand for SAF continues to outstrip supply, and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient,” says Menon.
To this end, he says governments and suppliers “must step up to tackle” the challenges.
“[Aviation’s] contribution to economic and social development is an outsized one, particularly in the Asia Pacific region. Airlines don’t manufacture aircraft, engines, fuel, or manage airports and airspace. Air services are clearly in demand, but meeting the demand is more difficult now due to factors outside the control of airlines,” states Menon.
It is not the first time that the AAPA has flagged supply chain challenges. At its annual Assembly of Presidents in 2024, member carriers spoke up about the ongoing issues, from securing parts for maintenance, to new aircraft delivery delays.
