(Yicai) Aug. 3 -- The global aviation supply chain is expected to enter a stable recovery phase by the end of next year, according to the China president of Rolls-Royce, one of the world's three major jet engine makers, whose engines mainly power wide-body aircraft.

"Supply chain challenges are a problem the entire aviation industry is grappling with, and Rolls-Royce is no exception," Liu Xiaowei told Yicai in a recent interview. "We hope that by the end of 2027, the industry's supply chain will enter a relatively stable recovery phase."

During the pandemic, widespread flight cancellations led to sharp declines in deliveries at Boeing and Airbus, forcing suppliers to cut their staff by up to 50 percent. Hiring and training new workers after the pandemic has taken time, delaying the recovery in production capacity.

For instance, Airbus's Chief Executive Officer Guillaume Faury said that the company is ramping up capacity while addressing a shortage of Pratt & Whitney engines, which will likely affect output of A320-family jets in 2026 and 2027.

There are no aircraft delivery delays due to Rolls-Royce engine delivery issues at the moment, Liu said.

About engine overhaul, he explained that Rolls-Royce's existing overhaul capacity is sufficient and still expanding. "The real constraint is the insufficient supply chain capacity of some key components, which has led to longer overhaul cycles and operational shutdowns."

Even though the firm expects supply chain challenges to continue throughout this year, it still plans to achieve its goal of zero shutdowns in the second half, Liu noted.

Rolls-Royce's response to these challenges includes stepping up supply from Chinese companies, Liu pointed out, adding that its procurement from China rose over 10 percent last year from the previous one, and it started deploying engineers and dedicated teams directly to key Chinese suppliers. "We are already seeing positive results for models such as the Trent 700."

Over the past few years, Rolls-Royce has invested GBP750 million (USD1 billion) to expand capacity at 12 overhaul facilities, lifting its repair capacity by 50 percent from 2023. The company expects its global annual overhaul volume to reach 1,300 to 1,400 engines by 2028.

Beijing Aero Engine Services, a joint venture between Rolls-Royce and Air China, began operations last December. "Its target for this year is to bring in 18 to 19 Trent 700 engines and deliver the first one to Air China around October," Liu told Yicai. BAESL will ramp up its overhaul capacity between 2026 and 2034, aiming to reach 250 engines once at full capacity.

About the narrow-body plane engine market, Liu said that Rolls-Royce's CEO has made clear that the firm plans to enter this segment, but it will likely do so through partners, which it is now seeking.

"The ongoing UltraFan program is meant to demonstrate the technical capability and expertise we would need to enter the narrow-body aircraft market," he noted. "The ground testing of the first narrow-body jet demonstrator engine is planned for 2028."

Editor: Futura Costaglione