AIN Staff

Presenting its worst ever financial results on November 25 in Paris, French supplier Zodiac Aerospace said it continues to suffer from its <a href="https://www.ainonline.com/aviation-news/aerospace/2015-11-05/zodiac-aerospace-facing-its-toughest-crisis">well-publicized airliner seat crisis</a>. By November 24 its backlog of delayed seat deliveries stood at 500 “packs,” or the equivalent of 1,500 economy seats.

 


Meanwhile, the group’s core annual revenues fell to €314.1 million ($334 million), a shortfall of 44 percent for 2014/2015 compared with the last fiscal&nbsp;year. “These figures don't please us; it is a fiscal year that doesn't satisfy us,” said Zodiac Aerospace CEO Olivier Zarrouati.

 


Considering the difficult situation, Zodiac Aerospace remains extremely careful on financial guidance, predicting an operational margin of 10 percent for the fiscal year 2015/2016 and 12 percent for the year after. Significantly, the French manufacturer doesn't foresee to return to normal in just one year. Its expects its transformation plan Focus, launched last spring to reorganize the production process within the company, to last at least 18 months.

 


The plan started with a review of all production processes. After identifying the problems during the summer, from the lack of engineers to supply chain weaknesses, Zodiac decided to reorganized its management with the help of external consulting and after extensive reviews with its customers.

 


&nbsp;“Since September we haven’t discovered bad news,” said Zarrouti, confirming that the summer has brought several unfortunate surprises for the company. Certification problems and supplier delays didn't help matters, and the company now concedes its “growth crisis” involves on all platforms, from its private jet business to the Airbus A380.

 


Airbus CEO Fabrice Bregier has described the seat problems as “unacceptable,” sending Airbus experts to Zodiac’s production unit in Santa Maria, California, which specializes in business and first class seats and stands as the center of the seat-delay crisis. To help alleviate the bottleneck, Airbus experts traveled there to help engineers improve the production&nbsp;processes.

 


Zodiac says it still believes in its business model and has so far reached agreements with the airlines affected by the seats delivery delays, including American Airlines, which in September to bring the case in front of a judge, resulting in the cancellation of part of its contract with the seat supplier.

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Zodiac’s Seat Woes Continue to Weigh on Results

Some 500 seat packs remain on backorder 

2024 Corporate Aviation Leadership Summit

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Get a glimpse of Qatar's unique interior appointments.

Step Aboard Qatar Executive's Gulfstream G700 Business Jet

Hanneke Weitering

Jilin signs preliminary purchase agreement for 41 EH216-S aircraft

EHang Plans Cold-weather eVTOL Trials in China’s Jilin Province

Republic Airways is the latest customer to receive an aircraft for testing.

Beta Technologies' Alia CX300 Electric Aircraft Debuts at Paris Air Show

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Competing against the Boeing 777, this airliner has a maximum capacity of 410 passengers.

Airbus A350-1000 Airliner Flies at the Paris Air Show

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

More In Aircraft

Step Aboard Qatar Executive's Gulfstream G700 Business Jet

Get a glimpse of Qatar's unique interior appointments.

EHang Plans Cold-weather eVTOL Trials in China’s Jilin Province

Jilin signs preliminary purchase agreement for 41 EH216-S aircraft

Beta Technologies' Alia CX300 Electric Aircraft Debuts at Paris Air Show

Republic Airways is the latest customer to receive an aircraft for testing.

Airbus A350-1000 Airliner Flies at the Paris Air Show

Competing against the Boeing 777, this airliner has a maximum capacity of 410 passengers.

Fouga CM170 Magister Flies at the Paris Air Show

This French classic is right at home at the Paris Air Show.

Embraer KC-390 Military Airlifter Flies at the Paris Airshow

Nations around the world have ordered the multirole aircraft.

Embraer E195-E2 Airliner Flies at the Paris Air Show

The regional airliner can seat up to 146 passengers.

Eurofighter Typhoon Fighter Jet Flies at the Paris Air Show

The multirole fighter is flown by nations across Europe and the Middle East.

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN