This article first appeared on GuruFocus.
Airbus (IDSI) is confrontation a supply chain story that investors may want to keep a close eye on. Spain's UGT FICA union accused key supplier Sofitec Aero SL of broader manufacturing irregularities related to the A320 program, according to a Dec. 5 memo reviewed by Bloomberg. Workers said Sofitec falsified dates at several stages of production to ensure parts met Airbus specifications and pointed to 10 anomalies at the Seville plants, including the use of expired paints and sealants and unauthorized repairs to carbon fiber components. Airbus said it maintained an open dialogue with supplier partners and acted as soon as its internal quality system identified the problem, while Sofitec did not respond to repeated requests for comment.
The timing could be sensitive for Airbus, given that problems with Sofitec panels have already forced the aircraft maker to cut its 2025 delivery plan due to increased inspections. Airbus said some panels in the A320's glacis were either too thick or too thin and required further inspection, affecting more than 600 aircraft, including planes already in service. The company expects most parts tested to meet production standards, although the additional workload could be a drag on production rates and affect how investors think about supply visibility and working capital timing next year.
The union also pointed to ongoing health and safety problems at Sofitec, citing a government inspection report from December 2024 that highlighted excessive indoor temperatures and mishandling of carcinogens. Bloomberg could not independently verify the audit's findings, although the union said numerous formal complaints have been filed and several lawsuits are underway. For long-term shareholders, the episode could be a reminder that execution risk within the supply chain remains a significant variable for Airbus as the industry relies on travel demand, fleet upgrades and increased production targets.
