Page 49 - AA 2018_09
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AIRBUS A220



                                                                                             of suppliers is also going to be very
                                                                                             helpful. But yes, that is one of the
                                                                                             priorities for the program, ramp it up,
                                                                                             build the sales. I can see already just
                                                                                             in discussions we have had in the last
                                                                                             seven months a lot of capability and
                                                                                             help that came and of course now we
                                                                                             are going to have an additional facility
                                                                                             in Mobile which will increase the
                                                                                             capacity and help that ramp-up.
                                                                                               “Basically, we are going to build
                                                                                             a sales volume and ramp up the
                                                                                             program and again that is going to
                                                                                             be helpful for everyone because with
                                                                                             more volume it will help the suppliers
                                                                                             and us to reduce our downhill earning
                                                                                             curve and also to produce at a lower
                                                                                             cost. We have had some preliminary
                                                                                             discussions with our suppliers and
                                                                                             they are also very supportive so we are
                                                                                             confident we are going to get to a very
                                                                                             successful program together.”
                                                                                               So what to make of Airbus’s change
                                                                                             of tune on the 100-150 seat market,
                                                                                             a sector in which its forecasts were
                                                                                             previously far more pessimistic than
                                                                                             Bombardier’s? There has, apparently,
                                                                                             been a reassessment.
                                                                                               “As far as I am concerned we
                                                                                             see in that sector over the next 20
                                                                                             years – and that includes the C series
                                                                                             and the A319neo – 7,200 aircraft, of
                                                                                             which 6,100 will be for C Series size,”
                                                                                             Dufrenois said.
                                                                                               Airbus would expect to get half of
                                                                                             these orders.
                                                                                               “I don’t think we can be accused of
                                                                                             not underestimating this market,” said
                                                                                             Dufrenois. “We did give our colleagues
                                                                                             at Bombardier a very hard time when
          second line being built in Mobile,   volume Airbus brings this program    The A220 features five-abreast   it came to the C Series v the A319/320
          Alabama (alongside an existing Airbus   will be very successful.”  seating in economy and an   competition, to the extent where we
          final assembly line for its A320) will   Dufrenois says one of the major   advanced flightdeck featuring   actually grabbed a lot of this market.
          open in 2020 with plans for it to   tasks ahead is to reduce the unit costs   sidestick controllers. airbus  “But that was not actually to
          deliver 50 to 60 aircraft a year.   of the aircraft.                               underestimate the market itself nor
            Ultimately, production rates will   “How we are going to do that in              the program. John (Leahy, former
          depend on how successful Airbus is   many instances is on the supplier             Airbus sales chief) said it was a cute
          in selling the jet. Cutting production   front of course. We are sharing some      little plane and I think he meant it.
          costs on the troubled program will be   suppliers with Airbus and of course we     It is still a cute little plane. The point
          one of Airbus’s key targets, allowing   will take advantage of our global scale    is at one stage we had to make this
          it to turn out jets at a price customers   to actually ask a little bit of effort from   ‘We did   decision.
          are prepared to pay.           some of our suppliers on the C Series                 “We have made this decision and
            Can the A220 be built at a price the   particularly.        give our             we are going to make this C Series
          market will accept to buy it?    “That’s the kind of thing that                    a great success… all the 100-seaters
            “The answer is yes, of course,   we will do. I cannot tell you which   colleagues at   that came on the market were actually
          because otherwise we wouldn’t   suppliers particularly. We are looking             regional aircraft that were stretched
          continue an endeavor on this   at them all as we speak. That is   Bombardier       but Bombardier took the bet and the
          program,” explained Dufrenois.   ongoing work. But the idea is to take             commitment to actually design a new
            “Airbus did a very thorough   advantage of the global force in terms   a very hard   aircraft from scratch specifically for
          assessment of the market, the pricing   of the global supply of Airbus.”           the 100-seater. It was extremely risky
          and the costing of the aircraft and   Rob Dewar, known as father of the   time when it   at the beginning because they were
          we are confident that together in this   C Series and now head of customer         hitting the lowest part of the A320
          partnership we have the capability   service for CSALP said Airbus brings   came to the   segment which proved to be a little bit
          and capacity to make the program   a world-leading capability to help the          risky.”
          successful. We are very confident   program.                  C Series.’             Indeed, until now there has been
          on that. Yes, we have to make cost   “They have huge production                    a “grey area” between what are
          reductions and of course with the sales   rates and their ability and network   DAVID DUFRENOIS  commonly known as regional jets and
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