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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UK, USA, Australia Sign Pact to Strengthen Supply Chains

DHL Express orders first electric cargo planes

DHL Express, the world’s leading express service provider, and Eviation, the Seattle-area based global manufacturer of all-electric aircraft, write aviation history in announcing that DHL is the first to order 12 fully electric Alice eCargo planes from Eviation. With this engagement DHL aims to set up an unparalleled electric Express network and make a pioneering step into a sustainable aviation future. Eviation’s Alice is the world’s leading fully electric aircraft, which enables airlines – both cargo and passenger – to operate a zero-emission fleet. Eviation expects to deliver the Alice electric aircraft to DHL Express in 2024.

“We firmly believe in a future with zero-emission logistics,” says John Pearson, CEO of DHL Express. “Therefore, our investments always follow the objective of improving our carbon footprint. On our way to clean logistics operations, the electrification of every transport mode plays a crucial role and will significantly contribute to our overall sustainability goal of zero emissions. Founded in 1969, DHL Express has been known as a pioneer in the aviation industry for decades. We have found the perfect partner with Eviation as they share our purpose, and together we will take off into a new era of sustainable aviation.”

Alice can be flown by a single pilot and will carry 1,200 kilograms (2,600 lbs). It will require 30 minutes or less to charge per flight hour and have a maximum range of up to 815 kilometers (440 nautical miles). Alice will operate in all environments currently serviced by piston and turbine aircraft. Alice’s advanced electric motors have fewer moving parts to increase reliability and reduce maintenance costs. Its operating software constantly monitors flight performance to ensure optimal efficiency.

“From day one, we set an audacious goal to transform the aviation industry and create a new era with electric aircraft,” said Eviation CEO Omer Bar-Yohay. “Partnering with companies like DHL who are the leaders in sustainable e-cargo transportation is a testament that the electric era is upon us. This announcement is a significant milestone on our quest to transform the future of flight across the globe.”

The aircraft is ideal for feeder routes and requires less investment in station infrastructure. The Alice can be charged while loading and unloading operations occur, ensuring quick turnaround times that maintain DHL Express’ tight schedules.

“My compliments to Eviation on the innovative development of the fully electric Alice aircraft” says Travis Cobb, EVP Global Network Operations and Aviation for DHL Express. “With Alice’s range and capacity, this is a fantastic sustainable solution for our global network. Our aspiration is to make a substantial contribution in reducing our carbon footprint, and these advancements in fleet and technology will go a long way in achieving further carbon reductions. For us and our customers, this is a very important step in our decarbonization journey and a step forward for the aviation industry as a whole.”

With innovation, performance and sustainability serving as its North Star, Eviation is creating a new era in aviation with the all-electric Alice aircraft. Alice has been specifically designed so that it can be configured for e-cargo or passengers. Eviation’s Alice all-electric aircraft is on track for its first flight later this year.

“The next time you order an on-demand package, check if it was delivered with a zero-emission aircraft like DHL will be doing,” said Eviation Executive Chairman Roei Ganzarski. “With on-demand shopping and deliveries on a constant rise, Alice is enabling DHL to establish a clean, quiet and low-cost operation that will open up greater opportunities for more communities.”

The decarbonization of its operations is one of the main pillars of DPDHL Group’s new Sustainability roadmap announced in Q1 2021. The Group is investing a total of 7 billion euros (Opex and Capex) by 2030 in measures to reduce its CO2 emissions. The funds will go in particular towards electrification of last-mile delivery fleet, sustainable aviation fuels and climate-neutral buildings. On the way to the zero emissions target by 2050, which has already been in place for four years, the company is committing to new, ambitious interim targets. For example, as part of the renowned Science Based Target Initiative (SBTi), Deutsche Post DHL Group is committed to reducing its greenhouse gas emissions by 2030 in line with the Paris Climate Agreement.

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