AvionGarde Founder Claude Draillard Explores Tariff Impact on the Airline Industry on CFOIQ
On CFOIQ, AvionGarde founder Claude Draillard explains how tariffs are disrupting global supply chains, driving costs, and reshaping the airline industry.
CALIFON, NJ, UNITED STATES, December 15, 2025 /EINPresswire.com/ -- In Exclusive CFOIQ Appearance, AvionGarde LLC Founder Claude Draillard Discusses Tariff Impact On Airline Industry
Soon after the US imposed new, higher tariffs on imports from Canada and elsewhere, the global Quebec-based airline manufacturer Bombardier faced a difficult challenge: a customer's aircraft was stranded in Asia, needed a critical part, but the only serviceable replacement sat in Chicago.
“Under the new tariff regime, shipping the part to Asia could trigger a 50% tariff once the aircraft returned to the US,” noted Claude Draillard, founder of the leading aviation consulting firm AvionGarde LLC. Draillard recently appeared on CFOIQ, a peer-to-peer video interview series offering sophisticated guidance executives need to achieve objectives for their company and careers. “And since the customer was the importer of record, they would pay the tariff.”
But it gets worse. “Meanwhile, the broken part would be returned to Bombardier's Frankfurt repair center, only to be hit with U.S. tariffs once it was shipped back to Chicago,” he added. “The result? One part effectively doubled in value for no good reason except tariffs.”
This real-world example “illustrates the complex challenges facing the aerospace industry today,” Draillard told CFOIQ Host Andrew Zezas, who also serves as Publisher & CEO of CFO Intelligence, and Strategist & CEO of Real Estate Strategies Corporation.
Draillard, who previously served as CFO at Honda Aircraft, Dassault Falcon Jet, and other prominent aerospace companies, provided deep insights into how shifting tariffs are reshaping an industry that generated $995 billion in U.S. sales in 2024, up 4.2% from the previous year.
“Not one country can do everything in an airplane,” Draillard explained, noting that international collaboration has defined aerospace for decades. “Today, that interdependence is more complex than ever. Boeing's 777, for example, sources 30% to 40% of its components from outside the United States, with Japan alone supplying approximately 20% of the aircraft.”
Global issues
This global supply chain creates intricate questions when tariffs enter the equation. Draillard described how manufacturers are now diving deeply into their bill of materials, analyzing whether titanium from Ukraine, cast parts from Mexico, or assembly in the U.S. qualifies their products for tariff exemptions based on U.S. content calculations.
“Some airlines are adapting to tariff pressures through operating leases,” he explained. “By leasing rather than purchasing aircraft outright, airlines can amortize tariff costs over the life of the lease, though this ultimately will impact ticket prices for consumers.”
Draillard characterized the current environment as a "perfect storm" where tariffs compound already-severe supply chain disruptions. Before the Ukraine conflict, 80% of titanium and aluminum used in aerospace came from that region. Now, manufacturers struggle to find alternative sources with comparable quality.
Draillard was unequivocal about optimal tariff policy, “There's no better scenario than reverting to the 1979 Agreement on Trade in Civil Aircraft, which eliminated tariffs on civil aircraft, engines, and related parts.” He cited Swiss manufacturer Pilatus, which stopped U.S. deliveries entirely due to 39% tariffs, directly impacting up to 250 workers at their Colorado facility.
"If we don't go back to the Agreement, we're going to give foreign aircraft manufacturers an incentive to say, ‘You know what? Screw it. We're going to develop our own stuff," Draillard warned.
Despite current challenges, he remains optimistic about the industry's future. “There's going to be tons of new technology, there's going to be tons of new transactions,” Draillard says. “And we're seeing new buyers, especially in the business aviation world. We see younger generations say, ‘We want the flexibility of flying when we want, where we want, without too many restrictions.’ And the airlines do not provide that service. So we need our own airplane. And we see the same philosophy now growing in Asia, in Europe. The next 10 years are going to be a lot of fun.”
About CFOIQ:
CFOIQ is a peer-to-peer video interview series where CFOs and finance executives share insights and intelligence on innovative growth strategies and the experiences that drive success for their companies and careers. Complete interviews can be accessed at https://cfoiq.com.
About AvionGarde LLC:
AvionGarde LLC is a problem-solving consulting firm providing tailored financial solutions to aviation companies, including strategic planning, FP&A, aircraft financing, market analysis, and company organization. AvionGarde LLC is a partner of Halo Aircraft Leasing and High Altitude Partners.
CFOs and other Senior Finance Executives who wish to be considered for a CFOIQ interview, or want to suggest a business story for CFO Intelligence Magazine, should email andrew.zesus@cfointell.com.
Media Contact:
Andrew Zezas, CFOIQ Host
Publisher & CEO of CFO Intelligence
andrew.zesus@cfointell.com
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Andrew B Zezas
CFO Intelligence
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Andrew.Zezas@cfointell.com
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