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Airbus relies on current A320 model to meet delivery goal

May 22, 2016
Arab News Report

HAMBURG: Airbus is sticking to 2016 delivery targets despite a slow start caused by supplier problems, but is having to fall back on an older version of its best-selling jet to make up for delays in the A320neo, executives said.

Deliveries fell 7 percent in the first quarter after problems at engine manufacturer Pratt & Whitney left about two dozen A320neo jets without engines, creating what its operations chief called on Monday a queue of “gliders."

Europe’s largest aerospace group said it expected an updated version of Pratt & Whitney’s engines to be ready in the summer, allowing it to complete the semi-finished jets and ramp up deliveries in the second half.

But it acknowledged it would have to deliver fewer of the A320neo jets than planned this year, as it brings forward extra deliveries of the existing version, known as ‘A320ceo’ (current engine option), to plug the gap.

“We are using the flexibility we have on ceos to offset some of our challenges on neos," Chief Operating Officer Tom Williams told Reuters on the sidelines of an annual media seminar.

Airbus is targeting over 650 jet deliveries in 2016, up 2.3 percent. The deliveries account for about 70 percent of Airbus Group revenues.

Recent delays have disrupted the outset of a two-year changeover between the current A320 and the revamped A320neo: carried out even as Airbus raises overall narrowbody jet production to 60 a month by mid-2019 from 46 a month now.

Deliveries of the larger A350 long-haul jet have also been delayed, mainly by shortages of cabin equipment. “2016 is the start of a very challenging period," programs chief Didier Evrard said.

Executives said Airbus expected to meet its target of delivering at least 50 A350s in 2016, compared with 9 since January. It plans to raise output to 10 a month by 2018.

More than 40 of the jets are on the assembly line.

“The airframes are there; now it is a race against the clock for the cabins and to finalize assembly," Chief Procurement Officer Klaus Richter said.

But with Airbus still dealing with the unexpectedly slow start to the year, operations chief Williams dampened expectations it could raise its output targets even further, as suggested by its bullish sales chief John Leahy.

He told jouralists that current plans were “enough for now” and there were no serious studies of going higher. Leahy has called for more A350s to open the door to increased sales and has suggested the market would support increasing A320 output as high as 63 a month.

Aerospace analysts have, however, expressed concerns that an extended boom in jetliner demand is fading due to concerns over growth in emerging markets and relatively low oil prices.

Williams said there had initially been some problems delivering A350 sections to the assembly line at the right quality, but there had been no repeat of wiring difficulties that crippled output of the larger A380 superjumbo in 2006.

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