Zodiac Aerospace struggled with aircraft seat-delivery delays in 2015, a situation that hurt its first-half fiscal results and prompted a major reorganization at the Plaisir, France-based company.
A month after the profit warning, the company acknowledged that “the problems are deeper than we expected,” CEO Olivier Zarrouati said.
“We overloaded the production capacity. These delays are unacceptable, for the client and for us,” he said.
To fill the gap, Zodiac has had to fund production-cost variance and pay penalties, with some seats being flown to airline customers in an effort to reduce delays, albeit at high cost. Despite the efforts, the problems have contributed to delivery delays for aircraft manufacturers, including Airbus and Boeing.
The company launched FOCUS an “industrial battle plan” to reorganize all its processes. Changes would initially target the management model, with a new full-reporting line and standardization of processes across the business, a stark departure for a company that has tended to give some leeway to its many production units around the world.
How will Zodiac fare in the market at this years Hamburg show?
The article was published in Apr 2015