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The Star
3 days ago
- Business
- The Star
Inside the airline seat industry crisis that's delaying jet deliveries.
Tucked beneath the armrest of a luxury business class seat in a factory in Wales lies a clue to a global aviation bottleneck that has left many airlines waiting impatiently for new jets. Before the armrest can support the pampered elbow of a premium passenger, a complex manufacturing jigsaw with as many as 3,000 parts from 50 suppliers in 15 countries needs to be meticulously assembled to produce the luxury seat. As air travel grows, this niche but critical part of the aerospace industry is at the centre of efforts to clear a logjam that has contributed to billions of dollars of aircraft delays for industry giants Airbus and Boeing, and higher fares for passengers. 'If you look at this, all you would see is a top-level arm cap and think that's very nice,' said Dafydd Davies, industrial vice president at Safran Seats, during a visit to the company's factory in Cwmbran, Wales. 'If you look below, there is a lot more to the mechanical assembly.' How things work Coupled with bottlenecks in certification, growing airline demand for bespoke features has made it hard for a fragmented seat industry – only now getting back on its feet after the Covid-19 pandemic – to achieve economies of scale and boost output. 'There has been a perfect storm of what would otherwise not be industry-stopping problems,' said aircraft interiors expert John Walton, founder of specialist publication The Up Front . 'It's still very much a cottage industry.' Airbus warned airlines in May that delivery delays could persist for another three years as it works through a backlog of supply problems, which it blames chiefly on engines and seats. Airlines will need more than eight million seats in the next decade, according to a study by Tronos Aviation Consultancy and AeroDynamic Advisory. It's a business worth US$52bil (RM221.25bil) over 10 years. The cabin of a long-haul jet contains some of the world's prime revenue-generating real estate, which is why airlines are prepared to pay US$80,000 to US$100,000 (RM340,400 to RM425,500) for a single business-class seat and an astonishing US$1mil (RM4.24mil) for a first-class suite, insiders say. 'There are only a few truly differentiated things you can do onboard as an airline: the crew, the seat, the catering. Not so much the aircraft. So that's where we're going in the premium classes,' said Lufthansa group chief executive Carsten Spohr. At the Aircraft Interiors Expo every April in Hamburg, Germany, honours are handed out for inventions such as 'smart' lavatories, seats and even bins. Entrance to the expo is strictly by invitation and showrooms are protected by security worthy of a jewellery store. Inside, each is an Aladdin's cave of fast connectivity, eco-friendly materials and recently launched comforts such as headrests with built-in audio. The most advanced innovations are even further out of sight. 'It's a secretive world. Sometimes they have the little back rooms where they've got a seat or product they haven't publicly talked about,' said Steven Greenway, CEO of Saudi carrier Flyadeal. But behind the curtain is an industry struggling to graduate from a craftsman-like approach and small production runs to industrial scale – despite waves of consolidation which have whittled the sector down to two main rivals in premium seats: France's Safran and RTX unit Collins Aerospace. Then comes Germany's Recaro Aircraft Seating, which dominates economy seating but has struggled to break into premium, and rivals including China-owned Thompson Aero Seating and ventures backed by Airbus and Boeing: Stelia and Elevate. 'They compete on innovation, yes, but when they produce, it's not as reliable as the car industry,' said Spohr. Longer ranges for smaller planes have also triggered a scramble to adapt premium seat designs to tighter spaces. Even the tapered shape of a fuselage and differences between left and right mean few luxury seats are exactly the same. Added to that are tough certification requirements designed to protect head impact, and a dearth of certification engineers. Seats typically last about seven years whereas planes themselves fly for 20-25 years, so even when jets are finally delivered, the need for new seats soon comes around again. 'It's been a problem for 20 years. It's not just a recent issue. But I think it's got worse,' said Willie Walsh, director general of the International Air Transport Association and former head of British Airways. Industry reboot Failing to put the industry on a more solid footing could crimp the growth plans of airlines or force carriers to fly older planes for longer, and focus more on refurbishments. Now, some seat makers are trying to simplify production as they rebuild fragile global supply chains. Safran is one. Its seats unit finally broke even in the fourth quarter of 2024 after being battered, like many of its rivals, by the slump in demand during the pandemic. 'We've almost had to restart this industry. We've had to ramp back up again. We lost some longevity in talent because they decided to do something else,' said Safran Seats chief executive Victoria Foy. 'The fact that we got 2.5 times more out the door in 2024 than the year before demonstrates we can ramp up,' she said in an interview. On the factory floor, chips, screens and motors are pieced together in individual bays rather than on a moving production line since few luxury seats are the same. A walled-off workshop for first-class seats guarantees even more individual attention. 'We are managing a similar level of requirements to that of a landing gear or an engine,' Foy said. Under pressure to avoid those spiralling out of control, Safran and others are now rethinking the way they build seats to marry the customised flourishes required by many airlines with the cookie-cutter approach needed for efficient assembly. Instead of developing each seat from scratch, manufacturers are looking to re-use underlying designs. Using a limited set of underlying designs allows seat companies to do the basic engineering and certification earlier on, avoiding the risk of delays later in the process. But it's not just about improving the factory floor. Air travel is changing, said Stan Kottke, president of interiors at Collins Aerospace. In the Middle East, more families fly in business class. In the United States, retirees want to travel in an ergonomic seat. Millennials are investing in high-end travel experiences. They all want something different from the typical business nomad and airlines may even have to cater to different users at different times of day, Kottke said. 'You can build a platform that is deliberately designed for differentiation in a bunch of different directions,' he added. Strained relationships The disciplined approach is reshaping negotiations with airlines, where the CEO is often personally involved in the finer points of cabin design. In a change of tone, suppliers are increasingly turning away business rather than chasing every deal. In tenders, the reply 'no bid' has become common, as seat suppliers avoid piling up financial risk. The industrial blockage has strained the delicate three-way relationship between planemakers, suppliers and carriers. Airlines often buy seats directly from suppliers such as Safran, Collins or Recaro but get Airbus or Boeing to fit them. Reportedly, Airbus is exploring ways of charging seat firms penalties for delays that hold up deliveries of jets from its factories. None of the companies commented on contractual matters. Planemakers must also walk a tightrope between marketing the flexibility of their cabins while nudging airlines towards accepting greater standardisation to alleviate supply problems. Airbus has said it is acting to reduce risks to its own ramp-up plans from the 'divergent complexity' of bespoke interiors, while Boeing has said the resulting bottlenecks in certification will be a challenge for the rest of this year. The two giants have a powerful ally in the leasing industry. 'My advice to all airline CEOs would be ... stop inventing more seats. I know every airline CEO wants to design their own business class seat – don't do it,' said Aengus Kelly, chief executive of the world's largest aircraft lessor AerCap. 'Take one that is certified, that's a very good product, and you'll get your airplane in the air faster.' Airlines aren't willing to give up one of their biggest branding weapons just yet. One of the latest carriers to unveil plush seating, Riyadh Air, ruled out any retreat from customisation. 'I want a brand that's unique and that uniqueness is presented in the cabin,' said CEO Tony Douglas. – TIM HEPHER/Reuters
Sinar Daily
15-07-2025
- Lifestyle
- Sinar Daily
Man saves RM840,000 by spending just RM5 on food daily
His extreme frugality stems from a traumatic childhood experience. Since graduating six years ago, he has kept his monthly food expenses below 500 yuan (RM340), eating only home-cooked meals. - Photo illustrated by Sinar BEIJING – A 29-year-old man in China has captured widespread attention after successfully saving 1.3 million yuan (approximately RM840,000) over six years by spending less than 7.50 yuan (around RM5) on food each day. The man, known on social media as 'Little Grass Drifting North', works as a livestream host at an internet company in Beijing and also manages a media business. According to a report by Jiupai News, his extreme frugality stems from a traumatic childhood experience. His mother fell seriously ill and the family had to borrow over 100,000 yuan (RM65,000) for medical expenses. 'I realised the value of money when my family couldn't afford my mother's treatment. Since then, I've been determined to save so I won't have to rely on anyone in an emergency,' he said. Since graduating six years ago, he has maintained his monthly food expenses below 500 yuan (RM340), eating only home-cooked meals. His highest monthly cost is rent, at about 2,500 yuan (RM1,625), which is significantly more than his food budget. He also revealed that he has hardly taken any holidays in the past six years, not even during Chinese New Year. 'It's not that I'm stingy. I've joined company trips to Universal Studios and Sanya, but I didn't feel excited. I just don't have a strong desire for fun,' he said. However, he admitted that this lifestyle has affected his health, as he has started experiencing issues with cholesterol and blood circulation. Now, he is more inclined to invest in his own health and that of his parents. His latest goal is to save 2 million yuan to buy a house and a car so his parents can live comfortably and travel. 'I want to buy a house and a car with my own money so my parents can live well. Only then will I think about getting married and starting a family,' he added. He said that saving and careful planning have given him confidence about the future. His story has gone viral on social media, drawing mixed reactions. Some praise his determination, while others question whether living under such pressure just to save money is truly worthwhile. More Like This
Sinar Daily
14-07-2025
- Sinar Daily
Man arrested for mother-in-law's murder over RM340,000 insurance payout
CCTV exposes 'accident' as premeditated murder in Telangana insurance scam The suspect had taken out several insurance policies in his 60-year-old mother-in-law Ramavva's name earlier this year, including policies with the State Bank of India and the local Post Office. - 123RF photo TELANGANA – A man has been arrested in India for allegedly murdering his mother-in-law in a carefully orchestrated plot to claim insurance money, reportedly inspired by the crime thriller Drishyam. The incident occurred in Peddamasanpalli village, Siddipet district. The suspect, identified as Venkatesh, is accused of planning the killing to collect life insurance payouts totalling around 600,000 rupees (approximately RM340,200). According to Siddipet Police, Venkatesh had taken out several insurance policies in his 60-year-old mother-in-law Ramavva's name earlier this year, including policies with the State Bank of India and the local Post Office. In what police described as a calculated scheme, Venkatesh invited Ramavva to a farm under the guise of work. Later that night, he sent her home on foot along a quiet rural road. Investigators alleged that one of Venkatesh's accomplices then struck and killed her with a car. 'He tried to make it appear as a tragic road accident. But Closed-Circuit Television (CCTV) footage from the area revealed inconsistencies that raised suspicions,' a police spokesperson said. Further investigation led to Venkatesh's confession. He admitted to plotting the murder for the insurance money and revealed that he had promised his brother a share of the payout in exchange for his help. Authorities stated that the planning bore a striking resemblance to Drishyam, a film in which the protagonist constructs elaborate alibis to outwit the police. The case has now been expanded as police continue to investigate others believed to be involved in the conspiracy. More Like This
New Straits Times
13-06-2025
- Business
- New Straits Times
Indonesia to begin construction of long-delayed US$80bil giant sea wall
JAKARTA: Indonesia is set to begin construction of the long-delayed US$80 billion (RM340 billion) Giant Sea Wall along the northern coast of Java, a massive infrastructure project aimed at protecting coastal communities from rising sea levels and tidal flooding, President Prabowo Subianto said. Speaking at the International Conference of Infrastructure 2025 on Thursday, he said the project, first proposed in 1995 and delayed for decades, is now moving forward with renewed urgency. The project will span about 500km, from Banten in the west to Gresik in East Java. "The first priority is Jakarta Bay, where construction is estimated to cost between US$8 billion and US$10 billion. "This will be followed by works in Semarang, Pekalongan and Brebes - areas that are highly vulnerable to tidal flooding," he said. According to Prabowo, the initial phase will be co-funded by the central government and the Jakarta provincial government, each contributing 50 per cent. They are expected to allocate about US$1 billion annually over the next eight years to fund initial construction. While open to international collaboration, including with China, Japan, South Korea, Europe and the Middle East, the government will prioritise domestic expertise and resources. A special task force will be formed to promote the project, while a new governing body will be established to oversee its implementation. "The Giant Sea Wall is not just a physical barrier, but a strategic measure to protect lives and livelihoods in coastal areas. "We cannot afford further delays. This project must begin now, regardless of who finishes it," Prabowo added. The sea wall is part of a broader long-term strategy to address tidal flooding and land subsidence along Java's northern coast, issues officials warn are causing significant economic losses. Last year, Coordinating Minister for Economic Affairs Airlangga Hartarto said annual flooding in coastal Jakarta already results in direct economic losses of around 2.1 trillion rupiah (about US$130 million), a figure that could rise to 10 trillion rupiah annually within the next decade without intervention.
BusinessToday
27-05-2025
- Automotive
- BusinessToday
Sime Darby's 9M Profit Plunges 60% To RM1.29 Billion
Sime Darby Berhad reported a net profit from continuing operations of RM1.29 billion for the Group's nine-month period ended 31 March 2025 (9M FY2025), reflecting a growth of 9.9 per cent from the previous corresponding period. However, on a year-on-year comparison, the group saw a decline of 60% from RM3.21 billion. Revenue, on the other hand, was higher at RM52 billion compared to RM48 billion in 3QFY24. For the third quarter under review, Sime saw its net profit plunge from RM340 million to RM193 million, down 43% from the preceding year's quarter. Revenue was recorded at RM16 billion, which was lower by RM2 billion versus the year before. The performance was mainly attributable to the higher contribution from the UMW division and a higher one-off gain on the disposal of Malaysia Vision Valley (MVV) land, despite lower profits from the Industrial and Motors divisions. The Group's revenue for the nine months increased by 8.2 per cent to RM52.3 billion, compared with RM48.3 billion in the previous financial year. During the quarter under review, the Industrial division recorded a lower PBIT of RM221 million, mainly due to reduced profits from the division's operations in Australasia. In Australasia, profits were impacted by a currency-related parts price adjustment, unfavourable weather conditions, and a weaker Australian dollar against the Malaysian Ringgit. The Motors division reported a reduced PBIT of RM114 million in Q3 FY2025. This is attributed to the lower vehicle sales in most markets, as well as increased competition For the UMW division, PBIT for the quarter under review was largely contributed by the division's automotive business, particularly higher Perodua sales. However, the division saw a decline in PBIT to RM194 million as a result of competitive market conditions. Sime's Group Chief Executive Officer Dato' Jeffri Salim Davidson said, 'We continue to face external headwinds, particularly in the Motors division with ongoing economic uncertainty and the rise of Chinese automotive brands increasingly dominating the market. The consumer segment remains challenging amid the continuing price war and industry overproduction in China. For the UMW division, Toyota and Perodua continue to perform well in Malaysia. Despite the impact of the currency-related parts price adjustment, the long-term prospects for our Industrial division remains positive on the back of robust mining demand. Related
