Supply Chain, Covid Temper Buoyant Business at Dassault

 - July 20, 2022, 12:44 PM
Dassault's order intake jumped by more than 50 percent in the first half. (Photo: David McIntosh)

Dassault Falcon deliveries more than doubled to 14 aircraft in the first half of this year, while and order intake surged by more than 50 percent to 41—net of canceled aircraft from Russia—the French airframer announced today. That was up from the six Falcon deliveries and net orders for 25 recorded in the first half of 2021. Combined with contracts brought in for 86 Rafael fighters, Dassault's order backlog in the first six months reached a company record of €16.3 billion.

Eric Trappier, Dassault Aviation's chairman and CEO, noted a buoyant business but also pointed to concerns stemming from supply chain and workforce constraints, and exacerbated by the Ukraine crisis. Trappier remarked that sales actually were higher than reported but the tally reflected the cancelation of deals with Russian customers.

Other concerns for the company include potential risks for electronic components due to tensions between China and Taiwan. Trappier also expressed concerns that difficulties remain with the pandemic.  “We thought Covid was behind us,” he said, noting it was resurgent in several markets.

Trappier credited the strength of the market in the U.S. and Europe for the increased business with business jet traffic that exceeded 2019 levels and strong preowned business jet sales. Dassault is maintaining its guidance for 35 Falcon deliveries in 2022, he said, despite pressures it is facing with the supply chain.