Supply Chain Chaos in Aviation: What Record Demand Means for Your Business in Oman
Years after the pandemic, the aviation industry continues to face significant challenges in recovering from supply chain disruptions, intensified by soaring passenger demand and geopolitical tensions, according to industry executives and suppliers.
Airlines have been compelled to operate older, less fuel-efficient aircraft for longer periods as deliveries from major manufacturers like Airbus and Boeing are delayed. This is due to engine manufacturers and other suppliers managing competing demands between assembling new planes and maintaining existing fleets.
Jeffrey Lam, COO and President of Commercial Aerospace at ST Engineering—the world’s largest airframe maintenance and repair services provider—described these ongoing supply delays and bottlenecks as the “new norm.” Speaking at the recent Singapore Airshow, he expressed concern that this situation might persist, calling it “completely unacceptable.”
These shortages have also escalated costs for airlines. Leslie Thng, CEO of Singapore Airlines’ low-cost carrier Scoot, noted during a panel discussion that their company has had to proactively secure additional spare engines at their own expense to minimize operational disruptions caused by engine issues.
Global air passenger traffic reached a record high in 2025, exceeding pre-pandemic levels by approximately 9.3%, according to the International Air Transport Association (IATA), with further growth of 4.9% forecasted for this year. To meet demand, airlines are extending the use of older aircraft by around two years beyond the long-term average, leading to an estimated $11 billion increase in fuel, maintenance, engine leasing, and inventory costs in 2025.
IATA Director General Willie Walsh criticized the situation as “very frustrating,” urging suppliers to improve the supply chain to alleviate the financial burden on airlines.
Gael Meheust, CEO of engine manufacturer CFM International—a joint venture between GE Aerospace and Safran—highlighted the exceptional demand they face. Although production has ramped up by 25% in 2025, he noted that the unprecedented level of demand remains a significant challenge, with plans to increase output by at least 10% annually.
ST Engineering reported that while producing components such as engine nacelles takes about six weeks, overall lead times for parts and materials now extend up to a year, compared to about nine months before the pandemic. Lam added that early orders are no longer a reliable solution because some shortages are global, making even early procurement impossible.
Geopolitical issues further complicate supply chains. Paul Wingfield of Future Metals, a Berkshire Hathaway subsidiary, explained that the war in Ukraine has severely restricted access to Russian exports, which previously supplied about half of the world’s titanium. Lead times for titanium and nickel tubing remain between 50 to 60 weeks, significantly longer than the 20 weeks typical before the pandemic, as mills struggle to catch up after years of halted production.
While supply chain disruptions pose challenges, they have created opportunities for some. Feng Haotian, a sales engineer at Chinese carbon brake disc manufacturer Shandong Stopart Brake Material, revealed that supply shortages from Western original equipment manufacturers have doubled the company’s international sales last year. Stopart’s brake discs, priced at 200,000 to 300,000 yuan ($27,400 to $41,100) per set, offer nearly half the cost of comparable products, attracting new customers during the ongoing supply difficulties.
[Images: Airbus A350-1000 at Singapore Airshow; ST Engineering’s AirFish Voyager model]
The aviation sector’s recovery remains fragile as supply chain constraints continue to challenge the industry’s ability to meet soaring passenger demand efficiently and cost-effectively.
Special Analysis by Omanet | Navigate Oman’s Market
The prolonged supply chain disruptions and soaring demand in the global aviation industry signal heightened operational costs and extended maintenance cycles for airlines, which will likely pressure carriers in Oman to optimize fleet management and cost structures. However, these challenges also open strategic opportunities for local suppliers and tech innovators to capture market share by addressing bottlenecks and offering competitive, alternative aerospace components. Smart investors should consider diversifying into aerospace supply chain solutions and aftermarket services, positioning themselves to capitalize on enduring demand and geopolitical supply shifts.
