Tuesday, 17 December 2019

As Boeing halts 737 MAX production, Airbus can’t make jets fast enough

Airbus said meeting the 135-plane December goal will be ‘challenging’
The Pratt & Whitney PurePower PW1100G-JM jet engine of an Airbus A320neo. (Photo: Bloomberg)
As Boeing Co. halts production of its beleaguered 737 Max, global rival Airbus SE is grappling with a very different problem: speeding output of its rival narrow-body. So-called “stretch” versions of the A320neo jet have sparked an order frenzy as airlines snap them up to replace costly twin-aisle planes on longer routes or cram in seats on shorter legs. But to achieve that flexibility Airbus has had to offer a wide range of cabin layouts that’s made assembly far more complex.
Slower build rates on the top-priced A321 variant mean that the European company needs to lift deliveries 75% this month compared with November to meet full-year production targets. It’s a vital challenge for Airbus — not only to consolidate its advantage over a flailing Boeing, but also to maximize returns from its most expensive narrow-bodies as demand for even more-lucrative wide-body models moves past its peak.
“The A321 matters because as a stretch it should be by far the highest-margin aircraft of the Airbus narrow-bodies,” said Sash Tusa, an analyst at Agency Partners in London. The increased popularity of single-aisle types on longer routes could mean they come to account for three-quarters of the total value of planes delivered in a given year, up from 50% previously, he added….

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