Airbus procurement chief to move to India role, no successor named

FILE PHOTO: Airbus logo at the Airbus facility in Saint-Nazaire · Reuters

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By Tim Hepher

PARIS (Reuters) -The top supply chain executive at planemaker Airbus (AIR.PA), procurement chief Juergen Westermeier, has been appointed to run the group's operations in India and South Asia from September 1, according to an internal memo seen by Reuters.

His successor is "subject to further notice," the memo said.

Airbus declined to comment on internal appointments.

The European planemaker has been struggling to maintain production and deliveries of passenger jets on schedule while also attempting to steady a global supply chain hit by labour shortages and a loss of experience since the COVID-19 pandemic.

Airbus deliveries fell 4% in May and are 5% down for the year as a whole, Reuters reported on Tuesday, leaving the company an ambitious task to reach its target of increasing deliveries by 7% to 820 planes for 2025 as a whole.

A leading analyst, Cirium Ascend head of consultancy Rob Morris, posted on LinkedIn on Wednesday that production of the Airbus A320neo family had fallen behind Boeing's (BA) 737 MAX in May for the first time since August 2019, based on first flights.

Airbus declined comment on monthly production.

It has blamed production shortfalls on weak supply chains, particularly in engines and some aerostructures.

Westermeier's move is the second shake-up of critical engineering or industrial roles in as many weeks after the group's overall technology chief Sabine Klauke was moved to focus on digital design and manufacturing systems.

Westermeier had pressured suppliers on quality and urged them to carry more stock, according to a letter disclosed by Reuters in 2021. Last year he oversaw an initiative to unify standards. However, some suppliers have said a new focus is needed to coax the supply chain into supporting higher output.

A person close to the company said Westermeier's move was not linked to the recent supply chain situation, which had in any case started to stabilise. In the memo seen by Reuters, CEO Guillaume Faury praised the German executive's performance.

Westermeier replaces Remi Maillard who was named head of technology last month as Airbus studies the building blocks for a future replacement of its best-selling A320neo jet.

(Reporting by Tim Hepher. Editing by Jane Merriman and Nia Williams)