Asian airlines face supply chain woes


Malaysia Airlines said the desire for fatter profit margins is one of the causes for the shortages. — Reuters

PETALING JAYA: The heads of some of Asia’s biggest airlines say the long delays in the deliveries of brand new aircraft and supplies of spare parts are unfairly forcing them to deal with operational challenges, and consequently angry customers.

Speaking at the Association of Asia Pacific Airlines (AAPA) annual meeting in Brunei, Malaysia Airlines said the desire for fatter profit margins is one of the causes for the shortages, while Singapore Airlines Ltd said industry lobby groups such as the International Air Transport Association and AAPA weren’t doing enough to represent their members.

“Who is frustrated? Airline chief executive officers (CEOs) are, while others make money from us,” Malaysia Airlines’ CEO Izham Ismail said.

Izham said that while airlines typically have to make do with low single-digit margins, the rest of the supply chain was focused on double-digit profitability. “Is it fair?” he asked. —Bloomberg

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