Safran CEO on Aircraft Demand, Engine Durability

The video discusses the transition from a demand shock in 2020 to a supply shock due to geopolitical tensions, particularly the invasion of Ukraine. It highlights the need for resilient supply chains, avoiding dependency on single countries like China. The video also covers durability issues in jet engines, particularly in harsh environments, and the potential acquisition of Raytheon's aviation business to enhance flight control capabilities. The company aims to maintain a strong balance sheet and shareholder returns while considering strategic acquisitions.

What major event has exacerbated tensions on raw materials like steel and aluminum?

• Brexit

• Trade wars with China

• The invasion of Ukraine by Russia

• The COVID-19 pandemic

Why is it important to build resilient supply chains?

• To reduce costs

• To increase production speed

• To avoid dependency on a single country

• To improve product quality

What is a significant issue faced by the latest generation of jet engines like the LEAP engine?

• High fuel consumption

• High production costs

• Durability in severe environments

• Excessive noise levels

In which regions is the LEAP engine considered the engine of choice?

• India and the Gulf

• Europe and North America

• Australia and New Zealand

• South America and Africa

What strategic business move is being considered involving Raytheon?

• Licensing technology from Raytheon

• A joint venture with Raytheon

• Acquiring Raytheon's aeronautics business

• A merger with Raytheon

What financial position allows the company to consider both acquisitions and shareholder returns?

• High levels of debt

• Strong balance sheet and net cash positive

• Low market share

• Declining revenue

What is the company's policy towards shareholders?

• Returns only during profitable years

• No returns to shareholders

• Minimal returns to shareholders

• Nice return to shareholders