Airbus Prepares for Potential A320 Jets Production Boost After Summer
By Olivia Bugault
Airbus SE has asked suppliers to be prepared for a possible
production boost of its A320 family of jets by up to 18% for the
second half of 2021, the European plane maker said Friday.
The news, which was reported by the Financial Times on Thursday,
comes as the aerospace industry is still crippled by the fallout of
the coronavirus pandemic.
In April, Airbus slashed its production rate by roughly a third
to adapt to collapsing travel demand and what many expect to be
years of reduced traffic. At that time, Airbus decided to reduce
its production of A320 aircraft to an average of 40 a month
compared with 60 previously.
Following a reevaluation of the market after the summer, the
aerospace giant plans to maintain this level of production for its
best-selling narrow-body family jet until summer and has asked its
supply chain to "protect" a rate of up to 47 aircraft a month to be
ready for when the market recovers, it said.
"This decision aims to provide some visibility to our supply
chain and ensure that our industrial ecosystem will be adequately
prepared to gradually increase production eventually when the right
conditions are met," Airbus said. "This reflects the view that we
see the single-aisle market coming back first," is said.
Airbus said the decision isn't final but a "preparation" for
"when certain conditions are met."
Shares at 0941 GMT were trading 5.3% higher at EUR67.86.
Write to Olivia Bugault at firstname.lastname@example.org
(END) Dow Jones Newswires
October 23, 2020 05:57 ET (09:57 GMT)
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