European aviation giant, Airbus is planning to ramp up its production as it benefits from rival Boeing’s MAX woes.
|Airbus is planning to ramp up its production|
Airbus is aiming to increase its production to an all-time high in 2020, mainly by increasing the production of A320neo and A350s.
Airbus said on Thursday that it was discussing further ramp-up potential for the A320 program beyond the rate of 63 aircraft per month. The manufacturer already sees a clear path to further increase the production.
As per reports, Airbus aims to deliver a total of around 880 aircraft by the end of 2020. By 2023, Airbus could produce 67 A320s per month.
Whereas, its largest rival Boeing, continues to suffer from the grounded 737 MAX, after two deadly crashes killing a total of 346 people back in March, 2019.
The A320neo is the main competitor for Boeing’s 737 MAX aircraft. Airbus A320 is becoming popular among airlines around the world logging thousands of order.
|Boeing 737 MAX is grounded since March last year. Photo: Reuters|
Earlier this week, Boeing reported zero new orders in the month of January and delivered just 13 aircraft throughout the month.
It was the first time in decades that the American plane maker failed to receive any commercial order in January.
Max grounding has cost over $18 billion to the manufacturer. This may rise further as it is still to be re-certified. Its Renton factory is still completely closed.
“The direct competitor to the 737 Max is the A320 in the Airbus family of products. And on the A320, as you know, we are sold out until 2025 so we have no real opportunity in the short-term to offset the consequences of the grounding.” said Airbus CEO Guillaume Faury.
He said, “It might look like a paradox, but in the short term we do not benefit from the situation with a competitor.”
|Airbus A320s are sold out until 2025.|
Airbus is still running about six months behind schedule on deliveries due to slowdowns in some of its European factories. Recently, its A320 factory in China was closed due to the wake of Corona Virus.
Airbus was crowned the world’s biggest plane manufacturer in January, after Boeing faced worst year in three decades.
Airlines have focused on flying point to point, rather than routing through major hubs. This has led to the sunsetting of the giant Airbus A380.
Airbus launched A321XLR in its wake last year, which has turned to be a success, bringing hundreds of order in just a short period.
Recently, Airbus also had reached agreement to buy the remaining stake of Bombardier’s A220 passenger jet program totaling 75% stake in the program.
Smaller to the A320neo, the A220 is also a single-aisle plane which is rapidly becoming popular among airlines due to its modern technologies and longer range.
“We really believe in the very strong potential of the A220. Now, it can be the solution for some of the operators of the 737 but it is bit of a different segment, so it is a case-by-case analysis.” Faury said in a statement.
Airbus reported net loss for 2019 on Thursday, following the world’s largest bribery settlement along with problems with the A400M program.
|Airbus A400M being showcased in Singapore Air Show Photo: Airbus|
Despite this, Airbus reported record deliveries of 863 commercial aircraft, up from 800 a year before in 2019. A total of 768 net orders were also reported up from 747 in 2018.
While both manufacturer are suffering financially, Airbus is still somehow benefiting from the Max grounding.