Rolls-Royce Supply Chain Issues Strike Again

Rolls-Royce is struggling with persistent supply chain issues that are impacting its engine production and maintenance schedules, forcing British Airways (BA) to cancel flights on one of its most popular transatlantic routes. Starting December 12th, British Airways will suspend all flights between London Gatwick and New York’s JFK Airport until March 25, 2025, in response to the engine shortages. The airline cites logistical bottlenecks within Rolls-Royce’s supply chain as a key factor driving this decision.

The supply chain issues stem from a combination of raw material shortages, logistics challenges, and delays in the global delivery of engine components. Rolls-Royce, which supplies engines for BA’s long-haul aircraft, has been unable to meet rising demand due to constraints in sourcing critical materials like titanium and specialized electronic components. The company’s supply chain delays are affecting its ability to deliver new engines and complete necessary maintenance on existing ones, forcing BA to make operational adjustments.

British Airways expressed regret over the cancellation of flights, acknowledging the disruption this will cause for passengers, particularly during the busy holiday season. In a statement, the airline said, “We understand the inconvenience this decision will bring to our customers, but we are committed to minimizing any potential disruptions in our wider network as Rolls-Royce works to resolve the engine supply constraints.”

The logistical issues at Rolls-Royce extend beyond production to affect global transportation networks. Transportation of engine parts from manufacturing centers has been impacted by delays at major ports, compounded by a global shortage of freight space and skilled logistics personnel. This is causing a ripple effect that has slowed the assembly and distribution of engines for critical routes. The logistical logjam has hindered Rolls-Royce’s ability to meet the maintenance schedules BA requires to operate its transatlantic fleet, particularly affecting the Boeing 787 Dreamliners, which rely on Rolls-Royce’s fuel-efficient engines.

A Rolls-Royce spokesperson told us: “We take the industry-wide issue that the aerospace supply chain is currently dealing with extremely seriously. We’ve introduced a number of initiatives to reduce the impact on our customers. We’ve already introduced measures that allow us to respond more quickly to issues, such as integrating our Procurement and Supplier Management teams, sharing our own raw material stocks to tackle shortages, and hiring people to work in supplier organisations; one of our most impacted suppliers currently has almost 50 Rolls-Royce supply chain staff dedicated to driving their recovery.”

“These changes are already having a positive impact. So far this year, we’ve increased Trent 1000 supply chain output by a third, making more components available and minimising the time engines spend in our Maintenance, Repair and Overhaul (MRO) centres. We’re confident that these bold changes coupled with our long-term investment plans will provide continuous improvement for our customers. In addition, our first stage Durability Enhancement package for the Trent 1000 is in the final stages of certification and will more than double engine time on wing, while a second package of enhancements will deliver a further improvement of up to 30%.”

“Whilst this is not an MRO capacity issue, we know that demand will increase in the future. So, we have allocated additional investment this year to ensure we can meet that demand, creating some short-term surge capacity and allowing us to approximately double our MRO capacity by 2030. This will ensure scheduled maintenance, such as that of the British Airways Trent 1000 fleet, can be conducted as efficiently as possible.”

To mitigate further disruptions, British Airways is rerouting some aircraft and adjusting maintenance schedules for other key transatlantic routes. However, the Gatwick-JFK route was identified as the most feasible to suspend temporarily, with BA hoping to reinstate the route by late March once supply chain stability is restored.

Impact on Cargo Operations

The supply chain disruptions at Rolls-Royce are not only affecting passenger flights but are also having a notable impact on cargo operations. With fewer engines available for maintenance and replacement, cargo planes that use Rolls-Royce engines are also experiencing delays, exacerbating issues in global logistics.

Cargo flights, particularly those that transport high-value or time-sensitive goods, are now facing potential delays as maintenance timelines for Rolls-Royce-powered planes are stretched. This challenge has introduced additional uncertainty in an already pressured global logistics system, which has seen demand spikes due to increased e-commerce activity and seasonal holiday shipments. The limitations have forced cargo operators to reconfigure routing and adjust freight schedules to minimize disruptions to supply chains reliant on timely delivery.

Moreover, freight forwarding companies that depend on reliable transatlantic cargo services are now dealing with increased costs due to limited cargo space, as fewer available aircraft intensify competition for slots. For businesses relying on air freight to move high-demand items—such as electronics, pharmaceuticals, and perishable goods—these delays can lead to supply shortages, price increases, and missed delivery deadlines.

Broader Implications for the Industry

Industry experts warn that the Rolls-Royce delays reflect broader issues in the aerospace sector, as companies grapple with post-pandemic demand surges and logistics backlogs. With many components needing precision engineering and long-distance shipping, the aerospace industry is especially vulnerable to supply chain breakdowns. Analyst Ian Campbell from Aviation Logistics Group explains, “The challenges Rolls-Royce is facing are significant, as aerospace supply chains are finely tuned. Even minor disruptions can escalate into major logistical challenges.”

This incident is prompting British Airways and other airlines to explore diversifying engine suppliers and maintenance partners to reduce dependency on single sources. It also raises questions about supply chain resilience in the aerospace industry, with many advocating for increased investment in logistics technologies and multi-source supply chains to buffer against future disruptions.

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New Cargo Handling Facility at Heathrow

IAG Cargo, the cargo division of International Airlines Group (IAG) today celebrates the official opening of its new cargo handling facility, New Premia at key international hub, London Heathrow.

New Premia will serve as IAG Cargo’s new home for handling premium loose shipments, enabling double the amount of cargo to be managed daily. To accommodate this increase in cargo handling capacity, significant focus has been given to designing bespoke IT systems and systems integration to regulate freight movements and allocations inside the facility.

The facility has been designed to handle more cargo for customers as efficiently as possible, with 11 new landside doors, meaning even faster engagement for drivers to collect or drop off cargo. The temperature-controlled building includes a state-of-the-art Constant Climate Quality Centre (CCQC) for pharmaceuticals, with 29 dedicated cool cells and temperature facilities available from +2°C to +8°C (COL), +15°C to +25°C (CRT) and -20°C (FRO) ensuring sensitive shipments are held in a temperature-controlled environment at all times. Additionally, the +15°C to +25°C (CRT) chamber includes two dedicated break and build workstations. The new facility is certified under IAG Cargo’s Good Distribution Practice (GDP) WDA licence issued by the UK Medicines & Healthcare Regulatory Agency.

Operationally, four large ‘transfer vehicles’ have been introduced which service the 20 new workstations. These vehicles pass through rapid-rise doors allowing cargo to be moved autonomously through the facility and into storage in advance of collection and delivery to the aircraft for exports and similarly the process works in reverse for imports. This process uses ground-breaking technology as the system is fully integrated with IAG Cargo’s existing Warehouse Management System – which is the first time globally that this integration has been delivered.

David Shepherd, Chief Executive Officer at IAG Cargo said: “The opening of New Premia is a pivotal milestone for IAG Cargo – the benefits it will bring both to our customers and our operational teams is huge. We strive to provide the best service for our customers and the investment into our IT systems will improve our operational performance, optimising the movement of cargo to support global trade. I’m proud of the entire team that have made it possible to officially launch today – it represents a truly exciting time for us as a business. I look forward to seeing New Premia now run at its full potential.”

Investment into learning and development remains key at IAG Cargo and to prepare for New Premia opening and the transition to the new model, IAG Cargo staff have received targeted training over the last 18 months and this training continues as normal operations takes place at the facility. New roles have also been created such as six new Planning Managers, who work closely with the Operations Duty Manager and are fundamental in delivering the day-to-day operations.

IAG Cargo Restarts China Flights

IAG Cargo, the cargo division of International Airlines Group (IAG) announces it will restart services between London-Heathrow and Beijing and Shanghai after almost two years, as China reopens its borders to tourists.

From 23rd April, IAG Cargo customers will be able to export and import vital goods on a daily rotation between London-Heathrow and Shanghai Pudong International Airport. In addition, services between London-Heathrow and Beijing Daxing Airport will resume on June 3rd, with four flights each week.

During the early pandemic period, IAG Cargo offered customers cargo-only services and charters between the UK and China to support the delivery of essential cargo needed for the fight against covid-19. The business helped governments and private customers transport more than 11,000 tonnes of vital PPE and medical supplies from China.

From January 2020 and summer of 2021, IAG Cargo operated 700 charters and 160 cargo-only flights to China, with the last cargo-only service between London Heathrow and Shanghai in June 2021, and last cargo-only service to Beijing in July 2021.

Camilo Garcia Cervera, IAG Cargo Chief Sales and Marketing Officer said: “Europe – China is one of the world’s most important trade lanes, and a vital part of our network; we’re so pleased to be reopening the route after a long pause. With high-tech items, ecommerce, clothing and automotive driving both imports and exports, we can help customers to stay better connected with their trading partners across the world. Customers using our services also benefit from our wider network, that continues to grow and spans across six continents.”

Eligible customers seeking to use IAG Cargo’s services also benefit from IAG Cargo’s loyalty programmes; FORWARD.REWARDS and FORWARD.PLATINUM. Customers also have the option of utilising IAG Cargo’s extensive network, offering easy and convenient access to hundreds of destinations worldwide.

IAG Cargo is the single business created following the merger of British Airways World Cargo and Iberia Cargo in April 2011. Following the integration of additional airlines into the business, including Aer Lingus, Vueling and bmi, IAG Cargo now covers a global network.

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