In the commercial aerospace sector, both Airbus and Boeing both declared that they each exceeded operational targets for 2014.  However, the supply chain ecosystems for each of these manufacturers have continual challenges to perform even better in the months to come.

Today, Airbus announced that it achieved a new record of 629 aircraft deliveries in 2014, representing an increase for the 13th consecutive year. That compares to the 626 aircraft delivered during 2013.

The breakdown of deliveries consisted of:

490 A320 model aircraft

108 A330 aircraft

30 A380 super jumbo aircraft

Initial A350 XWB to launch customer Qatar Airways

Airbus was challenged at the last minute in delivery of the launch A350 but overcame issues of customer customized equipment needs to make its 2014 milestone.

On the inbound customer demand side, the aerospace provider booked 1456 net orders from 67 customers making its year-end backlog to be 6386 aircraft valued in excess of $919 billion. If the Airbus supply chain were to continue to support and sustain its current shipment volume performance, the current order book represents in excess of 10 years of production.

Airbus program development highlights in 2014 included the maiden flight of the rather popular A320neo which is currently scheduled for operational certification in Q3, and first customer delivery in Q4 of this year.

Last week, Boeing announced that it had achieved delivery of 723 aircraft, a record for the most commercial aircraft delivered in a single year. That compares to 648 aircraft delivered in 2013. The breakdown of deliveries included:

485 737 program aircraft

99 777 program aircraft

114 787 Dreamliner program aircraft including the first 787-9 launch model.

Similar to Airbus, Boeing was challenged with December deliveries of 787’s and other wide body aircraft because of a supplier shortage of premium seating. All three of Boeing’s final assembly facilities each set new milestones for aircraft delivery volume. On the inbound side, Boeing booked 1432 net orders bringing its year-end backlog to 5789 aircraft, a declared all-time high. The company recorded 1355 net orders in 2013. If the Boeing supply chain were to continue to support current shipment volume, the current order book represents in excess of 8 years of production.

Boeing program development highlights included the launch of the 787-9 in 2014 and the planned assembly of the first 737 MAX scheduled for this year.

No doubt, the supply chain and product management teams and ecosystems of both Airbus and Supply Chain Matters Tip of the Hat AwardBoeing went the extra mile in successfully achieving each of the 2014 operational milestones.  We extend our Supply Chain Matters Tip of the Hat recognition for their efforts, and hopefully, bonus goals were achieved and compensated.

Moving forward, 2015 brings expectations of even greater operational performance coupled with the needs to scale-up delivery cadence to even higher levels. As noted in a previous commentary, commercial aerospace supply chains exist in good and not so good news realities. All of the current backlogged customer orders need to be delivered to airline customer expectations for timing, anticipated reliability and performance.  Once again, there is a very strong reliance on the performance of the extended supply network and in solid operations and risk management.

Congratulations to all.

Bob Ferrari