Engine makers CFM and P&W are under pressure from the OEMs. OEM single aisle backlogs have become very large. For every airplane sold, there are two engines needed. Plus spares. We have seen hiccups from both engine makers as they roll out their new engines. There have been teething troubles. The materials and technologies deployed are cutting edge. To lower those backlogs, the OEMs are talking about going to rate 72. Which is alarming people in the supply chain as they struggle with moving to rate 60.
We discussed these issues with Teal Groups’ Richard Abouliafia.
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