Page 39 - World Airnews Magazine January 2021 Edition

MANUFACTURER

there are inherent risks that can affect sched- OEM for its own restructuring plan, yet delivered 341 aircraft, 230 fewer than a

ule,” he said. “While we continue to drive Faury pointed out that “rate 40 is solid.” year ago. The deliveries include: 18 A220s,
toward entry into service in 2022, this timing Agency Partners’ Tusa also is not so sure 282 A320-family aircraft, nine A330s and 32

will ultimately be influenced by certification the rate increase is coming. He said keeping A350s. The OEM has delivered 155 fewer

requirements defined by the regulators.” those plans alive is one way to prevent narrowbodies and 75 fewer widebodies

Though production rates are not yet customers from deferring deliveries at no than in 2019.

being revised, Boeing is cutting more jobs, cost if they can demonstrate that Airbus Single-aisle production was cut this year

primarily in its commercial businesses. production is below a level necessary to from more than 60 aircraft to 40. A350

An initial target of 16,000 reductions comply with contractual obligations. And it rates were reduced from 10 aircraft per

announced this year has grown to 30,000 by may also keep airlines away from the temp- month to six and later to five. A330 produc-

2022, with a combination of voluntary and tation to order cheap 737 MAXs. tion was halved.

involuntary programme. Boeing plans to “Airbus might need a narrow body rate Airbus delivered a total of 135 aircraft in

have 130,000 employees by the end of 2021. increase to offset - both in volume terms the third quarter. “Production and deliver-

The company posted a net loss of (US) $466 for its suppliers and financially for investors ies now converge,” said Faury. Airbus still

million, or (US) $0.79 per share, in the third - the potential impact of further cuts to the has an inventory of 135 aircraft that have
quarter as revenues fell 29% to (US) $14.1 bil- A350 and A330 widebody programmes,” been built but not delivered.
lion, led by a 56% drop in Boeing Commercial Tusa also contended. But according to CFO Dominik Asam, only
Airplanes business unit revenues. He thinks A330 demand will be “espe- 10 or so of the 135 aircraft are actual white

In spite of anticipated overcapacity, cially weak” in 2021-22 and that A350 tails with no customers; the vast majority

Airbus continues to consider raising sin- production at five aircraft per month looks are aircraft for which deliveries have been

gle-aisle production rates from 40 aircraft “similarly unsupported.” deferred by 1-2 years.

per month to 47 at some point in 2021, a Faury pointed out that the A330 remains While Airbus recorded a negative free

move that would be “backed by the back- “an important piece of the puzzle.” Airbus cash flow before mergers and acquisitions

log,” according to CEO Guillaume Faury. has reduced the production rate of its and customer financing of €11.8 billion (US)

The manufacturer’s current production smallest and oldest active widebody $13.8 billion for the first nine months of the

and supply plan foresees it possibly raising program to two aircraft per month, which year, more than twice the amount of 2019,

output by the end of the second quarter of Faury said is still “sustainable.” cash flow turned to a positive €600 million

2021, though that is by no means certain. An “[The A330 has the potential] to be a very in the third quarter as the number of air-

earlier version of the plan anticipated such a good aircraft to move out of the pandem- craft deliveries grew and benefits from cost
rise by the beginning of the second quarter. ic,” he said. cuts became visible.

Airbus pushed that over three months due “Airlines will be looking for very cost-effi- In the commercial aircraft business, Air-
to market conditions. “We are in a low- cient solutions.” bus suffered a 33% decline in revenues to

er-for-longer scenario,” Faury said. None- The A330’s very low level of production €7.7 billion in the third quarter, compared

theless, he stressed, “It is important that has raised questions about its future: will it to a 43% drop in the first nine months,

the supply chain is prepared, and we expect be dumped as Airbus aims to stem overall indicating that its financial performance is
suppliers to be committed and ready.” losses? That such a move would create a slowly improving.

Extended market weakness could lead Boeing 787 monopoly is a key reason it is The unit posted a €591 million operating

Airbus to delay a decision to increase output unlikely to happen. loss, compared to a €1.12 billion profit a
even further into the second half of 2021. Airbus had been pricing the A330neo year earlier. Restructuring charges of €1.2
And one important supplier, MTU Aero aggressively in pre-COVID-19 campaigns, billion weighed heavily on group results,

Engines, is voicing caution. “There is a cer- but its backlog - marked by large and highly €981 million of which are recognized in the

tain scepticism [among suppliers] that this questionable orders from AirAsia X and Iran commercial aircraft division as the compa-

will really happen,” CEO Reiner Winkler said. Air -remains weak. ny moves ahead with job cuts and other

“We are assuming rate 40 but can be flexible Faury also forecasts that airlines will need cost-cutting measures. Q
and react quickly. I would wait a little more to replace the in-service A330 fleet in due

before we make financial commitments.” course. Unlike the case for narrowbodies, Article courtesy: https://aviationweek.

Thales, another important Airbus sup- Airbus does not anticipate increased output com/aerospace/manufacturing-

plier, is expecting production levels will for the A350 “in the foreseeable future.” supply-chain/airbus-boeing-plans-bring-

be below those publicly announced by the In the first nine months of 2020, Airbus 2021-deliveries-line-2019-levels

World Airnews | January 2021
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