Etihad Eyes Bulk Parts Buying to Shield Retrofit Schedule Amid Supply Woes

Etihad Airways is weighing a move to buy and store large quantities of critical aircraft parts in 2025 as supply chain delays continue to slow new jet deliveries and cabin upgrades across the industry. CEO Antonoaldo Neves said the carrier is studying whether bulk buying and stockpiling components—especially seats—could keep a major retrofit plan on schedule and reduce the risk of sudden groundings when suppliers fall behind.

The strategy would give planners a warehouse buffer so they can remove planes from service at times that don’t hurt the network, rather than waiting for late shipments and scrambling to rearrange flights.

Retrofit plan and short-term inventory tactic

Neves described the approach plainly: order enough seats to refurbish about 50 planes in a short window, store them, and draw from that stock when it best fits the flight schedule. The immediate aim is to protect Etihad’s $1 billion cabin retrofit program, which has already been pushed to late 2025 because of slow deliveries of premium seats and lavatories.

The carrier wants to ensure a consistent onboard experience across its Boeing 787 and 777 fleets, including:

• High-speed internet
• Refreshed inflight entertainment
• Full-cabin upgrades

All while keeping aircraft downtime as short as possible.

Five-year growth plan and fleet targets

The inventory strategy would also support a broader five-year program totaling about $7 billion, covering new aircraft, network growth, and new routes.

Key fleet and orders (as of September 2025):

• 102 aircraft in operation; targeting >170 aircraft by 2030
• Order book includes:
  • 38 Airbus A321neos
  • 12 A350-1000s
  • 25 Boeing 787s
  • 25 Boeing 777X (still years late; certification now expected late 2025 or early 2026)
• 2025 delivery expectations: 20–22 new deliveries
  • 10 A321LRs
  • 6 A350s
  • 4 787s

Global delays remain a significant variable for all these figures.

Supply strategy and retrofit timeline

The retrofit program aims to standardize cabins and raise service levels fleetwide, but it depends on the timely arrival of parts that are now frequently late. Premium business-class seats and lavatory modules are among the most delicate items due to long lead times and strict certification requirements.

Key elements of Etihad’s supply strategy:

1. Bulk buying of seats and other cabin items tied to a set number of aircraft.
2. Stockpiling inventory so maintenance teams can plan hangar time with confidence.
3. Coordinating removal of jets from service when passenger impact is lowest.

Procurement transformation highlights:

• Focus on cost control, reliability, and sustainability
• ~30% of supply chain now sourced within the UAE
• Rollout of SmartTrack in October 2025 to increase shipment visibility and reduce lost/late-component risk

The retrofit start date—late 2025—reflects market strain from skilled labor shortages, tighter quality checks, and supplier backlogs. A stock-first approach aims to prevent one late element from lengthening aircraft ground time and disrupting revenue and customer plans.

Industry context and broader impacts

The global production system feeding fleets remains fragile. Airbus and Boeing are clearing backlogs, and the 777X has experienced delays of several years. Carriers face choices such as extending leases, deferring retirements, or trimming schedules when deliveries slip.

Potential effects of Etihad’s approach:

• For travelers: fewer last-minute changes, more predictable refurbishments, and a higher chance of promised products (new seats, faster Wi‑Fi) being present.
• For employees: steadier workloads and reduced overtime spikes for maintenance teams.
• For suppliers: large orders can lock in production and help plan capacity, but may strain smaller vendors and lengthen waits for others.

The key question: Will bulk buying smooth production or shift bottlenecks downstream? Etihad’s scale gives it leverage, but manufacturer and regulator actions ultimately shape system capacity.

Regulatory considerations remain important. Airworthiness directives, parts traceability, and certification rules apply to cabin equipment and structural components. Suppliers often work to multiple authorities simultaneously, which can lengthen timelines. See the FAA Airworthiness Directives system for how regulators manage safety updates across fleets and parts.

Operational and financial position

Neves has pushed for operational flexibility to avoid last-minute schedule disruptions. He noted that about 60% of Etihad’s fleet is unencumbered, giving the airline room to park planes for upgrades if needed. Etihad’s board and Abu Dhabi’s ADQ back the investment as part of growing tourism and diversifying the economy.

Financial context:

• Etihad reported a 66% rise in after-tax earnings for the first nine months of 2024—about AED 1.4 billion (roughly USD 380 million).
• Improved earnings and unencumbered aircraft make it easier to carry inventory and invest in warehousing and logistics.

Suppliers will monitor the move: some may welcome multi-shipset orders that secure production; others may worry a few big customers absorb spare capacity. Generally, clearer forecasts help factories hire staff, plan overtime, and secure raw materials.

Risks, trade-offs, and indicators to watch

Trade-offs:

• Large orders can strain smaller suppliers and shift bottlenecks.
• But committed, long-term orders can allow factories to plan and scale.

Key indicators travelers, investors, and employees should watch:

1. Whether suppliers can scale output of premium seats and lavatories to match retrofit schedules.
2. Whether manufacturers can meet delivery targets for narrowbodies and widebodies despite certification and quality work.
3. Whether carriers using stockpiling can keep aircraft downtime short and predictable.

If these align, payoffs include more reliable service and clearer growth pathways.

Program governance and adaptability

Etihad plans to keep assessing supplier performance and global conditions through 2025:

• If delivery risk eases, inventory levels can be reduced.
• If delays persist, orders and storage can be scaled up.

Procurement strategy priorities:

• Resilience
• Cost control
• Sustainability
• Local sourcing where practical
• Digital tracking tools to improve visibility and accountability

Better visibility helps avoid situations where a shipping delay is only discovered after an aircraft is already in a hangar. Digital tools also support planning spare capacity if a shipset requires rework.

Regional implications

In the Middle East and Asia-Pacific—areas with strong passenger demand—carriers have little slack to absorb long delays. Smoother access to aircraft parts, whether through local sourcing or bulk buying, can support a steadier recovery.

Industry groups such as AAPA and IATA have warned that continued shortages and delivery delays raise costs and threaten growth. Etihad’s response fits a wider push to embed resilience into airline operations, even if that means carrying more inventory than before.

Bottom line

Etihad frames the plan as practical rather than flashy: a hedge against a system with thin margins for error. The airline’s size, funding, and order book give it options to protect the network, keep promises to customers, and progress with a multi-year cabin upgrade.

If one delayed shipment can stall a project, a warehouse full of the right parts may be the simplest answer. For official information about the airline and its programs, see Etihad Airways.