Executive vice-president for operations Florent Massou dit Labaquere told reporters that the European aircraft manufacturer is also moving closer to a longer-term objective of raising underlying output of narrow-body jets to 75 per month in 2027. Massou was speaking as the biggest aircraft manufacturer in the world got ready to open a second A320neo-family jet production line in the United States later on Monday in Mobile, Alabama. In the upcoming weeks, Airbus also intends to expand similarly in China. Despite a shift in demand toward the larger A321neo, which takes longer to manufacture, he claimed the increased network of 10 assembly lines will be enough to meet production targets.
Airbus announced plans in 2021 to nearly quadruple its production of narrow-body planes from 40 per month to 75 by 2025. Due to delays and bottlenecks in the sector, it has maintained the goal but has progressively pushed back the timetable by two years. According to industry sources, because targets were continuously extended, Airbus found it difficult to convince some suppliers to increase investments for plans that might not come to pass. However, Massou said suppliers were more optimistic. “With many suppliers who know where we are and who observe the stability we’ve had in terms of planning over the past few months, I’ve seen a completely different picture,” he said.
By the end of the year, Airbus hopes to finish the carve-up with Boeing of supplier Spirit AeroSystems, according to Massou. “We anticipate closing in Q4; the deal is moving forward,” he informed reporters. A Boeing official stated at a conference last week that supply chains have stabilized, and the production remarks support that assertion. To the International Society of Transport Aircraft Trading (ISTAT), marketing vice-president Darren Hulst stated, “The fact that we’ve been executing to our plan, and maybe in some cases exceeding it, gives our suppliers the confidence they need to invest in their own businesses.”
When it comes to pricing in the Fed rate cut for this month, I think traders are being a little too enthusiastic. According to suppliers, Airbus is presently producing 63 aircraft per month, in part through inventory absorption. According to a senior supplier, “the anxiety will be what happens towards year-end.”
