Page 21 - World Airnews September 2020 Edition

NEWS AIRLINES

BREXIT THREATENS AIRBUS BA’S FIRST A350-1000

By Gregory Polek

irbus warned of continuing global trade tensions and po-

Atenti al Brexit-related supply chain and logisti cal disrup- ritish Airways has taken delivery

tions in its commercial airplanes division as the US amplifies tariff Bof its fi rst A350-1000 at Airbus

threats and the UK prepares to leave the EU by the end of October. Headquarters in Toulouse, France, making

Speaking during the company’s first-half 2019 earnings Airbus also it the first operator of the larger A350-1000

highlighted the continued “challenges” associated with production in International Airlines Group (IAG).

of the Airbus Cabin Flex (ACF) version of the A321neo, deliveries of In total, BA has ordered 18 A350-1000s.
which have proved slower than anticipated due to what the Airbus Iberia, which is also part of IAG, already

boss CEO Guillaume Faury called the “complexities” of the design. operates five of the smaller A350-900s.

Faury raised the alarm about a so-called no-deal Brexit despite BA’s A350 with its modern and comfort-

Airbus’s early preparations for a UK exit from the EU in March, by able Airspace cabin will usher in new levels
which time former UK prime minister Theresa May had hoped to of comfort with the launch of the Club

have reached a deal for an orderly departure. Suite, the first new business class seat for

Now, new UK prime minister Boris Johnson promises to leave the British Airways in 13 years.

EU by October 31, raising the likelihood of an abrupt and disorderly The airlines sophisticated and newly-brand- London and Madrid prior to flying long-haul carbon fibre fuselage and wings, plus new

Brexit. ed 'Club Suite' offers direct-aisle access, a suite routes from September. fuel-efficient Rolls-Royce engines.

The Airbus CEO reported that although Airbus has stockpiled a door for greater privacy and luxurious flat-bed BA operates a fleet of over 150 Airbus Together, these latest technologies

month worth of parts inventory from a majority of its suppliers, seats in a 1-2-1 configuration. aircraft from the smallest A318 to the translate into a 25 per cent reduction in

logistics involving parts transfer remained a worry. “We are pre- The three class layout includes 56 club largest A380. fuel burn and emissions. The A350 XWB’s

paring again,” said Faury. suites, 56 world traveller plus and 219 The A350 XWB offers by design opera- Airspace by Airbus cabin is the quietest of

“It is not fully bulletproof...but with the no-deal Brexit being world traveller economy seats. tional flexibility and efficiency for all market any twin-aisle and offers passengers and

more likely we see far more willingness by governments to prepare BA, celebrating its 100th anniversary, segments up to ultra-long haul (15,000km). crews modern in-flight products for a com-

for this scenario, which basically means for us the inability to move will initially use the aircraft to fly between It features the latest aerodynamic design, a fortable flying experience. Q

parts. For the other risks or problems with Brexit we think we have

done the appropriate preparation with the supply chain, but the
most risky part is the logistics basically.”

Nevertheless, Faury added the eventuality would not affect Air-
bus’s 2019 financial guidance but rather presents a risk for 2020.

As for the tariff threats levelled by the Trump administration over BUSINESS

recent World Trade Organisation findings that certain elements

of EU support for Airbus commercial aircraft programs contra-

vened subsidy rules, Airbus CFO Dominik Asam explained that the FOR SALE
manufacturer “of course” has collected all needed data about the

ultimate destination of each aircraft and how that might affect

deliveries. He added, however, that the company’s “key focus” GLOBALLY RECOGNISED, FULLY CERTIFIED

centres on an effort to avert the situation. “We are doing every-
thing we can to make sure the aircraft that we can deliver to our US AVIATION AUDIT & RISK MANAGEMENT COMPANY

customers are there,” he noted.
Asam added that because the customers pay the tariffs, they Guillaume Faury

would determine whether or not they ultimately take deliveries of UNIQUE OPPORTUNITY • live / work / study in Australia

the airplanes. Given no one yet knows the extent of the tariffs, he SUBCLASS 890 BUSINESS OWNER VISA

said, he cannot predict the ultimate effect on Airbus. “We don’t First delivered to Turkish Airlines about a year ago, the A321neo • enrol in Australia's public health care scheme, Medicare

want to speculate on what our customers will do under such a ACF encompasses modifications including a new rear section and a Allowing indefinite stay in Australia for • sponsor relatives to come to Australia

scenario,” explained Asam. “There is also a question of the factory modification in which designers removed the door located forward business owner and their family! • if eligible, become an Australian citizen
in Mobile, Alabama. We send kits and from there we deliver to US of the wing and introduced new overwing emergency exits in the

customers so everything is still in the making and hard to predict.” centre section.

While Airbus believes the trade tensions won’t become a Airbus plans to make the ACF configuration standard for all • 20 years of operations in Australia, New Zealand and South Africa

financial issue until next year, the A321neo ACF presents a more A321neos sometime next year.

immediate concern, as the company maintained it intends to meet “There’s a lot happening and we are making progress,” insisted • Long-term customer base and profitable contracts in place
a delivery goal of 880 to 890 airplanes in 2019. Faury about the ACF. “It has been a very successful programme • 2 year handover phase for seamless transition

Recently A321neo ACF customer JetBlue expressed “disappoint- from a commercial standpoint, and the initial ramp-up of the ACF

ment” in resulting delivery delays that forced the New York-based proved to be more difficult than what we anticipated. So it’s the

airline to adjust its schedules in 2020 to reflect a two percent lower speed at ramping up the ACF is slower than what we had in the

capacity growth than originally planned. plan, and this is what we had to adjust. The complexity comes www.flightsafety.com.au
Speaking during the airline’s second-quarter earnings call with from the complexity of the plane itself...And you know that we

securities analysts, JetBlue CFO Steve Priest reported that of 13 had our issues in 2018 that took a lot of energy [and] focus to colin.weir@flightsafety.com.au +61 (0) 439 031 654
A321neos expected to arrive this year, the airline would take solve the consequences of the engine crisis we had in the begin- ISO 9001:2015 www.helideckcertification.com

just six. For 2020, a revised schedule now calls for delivery of 14 ning and middle of last year. Therefore, overall we have lost time Certified
A321neos rather than 15, leaving JetBlue with seven fewer of the in preparing for ACF.” Q wendy.richards@helideckcertification.com +27 (0) 83 263 4439

model at the end of 2020 than projected during last October’s Article courtesy https://www.ainonline.com/
Investor Day.
World Airnews | September 2019 World Airnews | September 2019
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