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Airbus And Boeing Argue Over Production Rates

Mon Jul 22, 2002 11:27 pm

Alphabetical listing order shown in the topic.

Boeing and Airbus have had a war of words about eachother's production rates.

Boeing says that Airbus hasn't reduced it's production rates to match the recession airlines are facing. Boeing called Airbus 'irresponsible'.

Boeing CEO, Alan Mulally said that Airbus' high production rates will hurt the airline industry. Airbus COO Gustav Humbert said, "They [Boeing] want volume, volume, volume, because they have not adapted as much as Airbus has. We feel this in the market in prices."

The comments came after Airbus announced a production output in 2003 and 2004. Airbus expects to deliver 300 aircraft, 25 down from 2001.

Alan Mullaly said, "We were thinking that 2003 would be the low point . . . but this sure does look like its going to be slower than people thought a year ago." "We knew we had to move decisively to reduce our production, however painful it was, to help our industry. We still have 2,000 airplanes that are not being used, they are on the ground, so it just seems like the responsible thing to do is to reduce production of new airplanes".

More information at the Financial Times website

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