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Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:09 pm

Airbus is expected to decide in the next couple of weeks on a production rate cut for the A320family. Reuters is reporting that one source says the rate cut could see the current rate of 60 aircraft per month reduced by half while another source says it will be reduced to 36 per month.

Airbus (AIR.PA) may have to cut its official monthly rate of 60 A320-family jets by as much as half for one or two quarters, two of the people said, to avoid a glut of undelivered jets.

Suppliers have been asked to slow their stream of parts by 40% to a rate compatible with production of 36 jets a month in the near term, one of the sources said .


https://www.reuters.com/article/us-heal ... SKBN21L161
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pugman211
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:30 pm

Wow! That is a massive drop in capacity. I cant see it going that low tbh
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:37 pm

pugman211 wrote:
Wow! That is a massive drop in capacity. I cant see it going that low tbh


Why not? With every airline in the world hurting right now, and a recovery expected to take a couple of years at best, there are far more planes out there than will be needed in the foreseeable future, and many planes being produced right now are likely to be NTU.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:38 pm

pugman211 wrote:
Wow! That is a massive drop in capacity. I cant see it going that low tbh


I could see it going even lower, Air travel is not going to bounce back quickly. Airlines have no cash for capital expenditure.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:47 pm

I'm not surprised - I think that was my guess from a few weeks ago. A320 at about 30-35 per month and MAX at about 10-20 assuming RTS.

Even at those rates I'm guessing they will be building some this year that won't be delivered until 2021 as travel returns. It will be airline specific.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:50 pm

Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.

I think 36/month is a bit ambitious, so I'll agree with Morrisond that a bunch will be delivered in 2021.

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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 1:52 pm

Why? In the current market the A319neo would make an excellent replacement for the A380 ;-p
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 2:09 pm

StTim wrote:
pugman211 wrote:
Wow! That is a massive drop in capacity. I cant see it going that low tbh


I could see it going even lower, Air travel is not going to bounce back quickly. Airlines have no cash for capital expenditure.



Guess we will find out in a few weeks.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 2:30 pm

In the next couple of weeks means maybe in three weeks. I guess they want to see first if growth in Corona cases continues exponential (widespread immunity soon) or flattens (long term fear).
I don't think they should cut production. Which airline wouldn't prefer A320 over B737Max, assuming it returns to service soon?
Boeing's balance sheet was much worse when they continued to manufacture planes which weren't allowed to fly. Also for the supply chain it's crucial that at least one OEM continues manufacturing. There are a lot of old narrowbodies that need replacement.
Is there some oscillation between euphoria and fear in humans?
Last edited by Sokes on Fri Apr 03, 2020 2:32 pm, edited 1 time in total.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 2:31 pm

RJWNL wrote:
Why? In the current market the A319neo would make an excellent replacement for the A380 ;-p

Excellent Idea for 242 NEOs. Now what is your plan for the other to keep production at 630 A320/year, ironically, another 388, this year?

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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 2:37 pm

Can the Boeing/Airbus leaders not look out their windows and see all of the planes sitting on the tarmacs? I understand they have employees (and stockholders) to take care of, but why build a plane just to have it sit? They need to make a decision so that their supply chains know what to do.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 3:44 pm

Sokes wrote:
In the next couple of weeks means maybe in three weeks. I guess they want to see first if growth in Corona cases continues exponential (widespread immunity soon) or flattens (long term fear).
I don't think they should cut production. Which airline wouldn't prefer A320 over B737Max, assuming it returns to service soon?
Boeing's balance sheet was much worse when they continued to manufacture planes which weren't allowed to fly. Also for the supply chain it's crucial that at least one OEM continues manufacturing. There are a lot of old narrowbodies that need replacement.
Is there some oscillation between euphoria and fear in humans?


Many airlines will prefer the 738 over the A320 - I believe it is more efficient (especially at shorter ranges) due to its seat advantage. You are also forgetting the cost of shifting a fleet over - which Airlines do not have the cash for. It would cost them a lot to cancel MAX orders and shift to A320 series.

Airbus should do Keesje's A320.5 and A322 versions with the existing wing - it makes a lot of sense. Just like for Boeing they should do ER versions of the MAX with more thrust.

The trend to upsize to larger SA's will also probably reverse for a while making the 738 more attractive. That being said A321XLR will probably shift to replacing a lot more WB's.

It's hard to know exactly what will happen - other than overall a lot less planes will be produced at least in the next 2 years. Who knows what happens after.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:07 pm

Didn't the A320 have a 7 or 8 year back log at present production rates? A few cancellations were expected but this is drastic.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:11 pm

Will the production rate cut is both NEO and CEO type?
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:18 pm

IIRC this will be the first time ever that A320 production has been cut?

Even ignoring the demand issues, I suspect that cutting the production rate is probably necessary in the short term due to supply chain issues, with various employees (including Airbus' own) unavailable due to covid19 quarantines and lockdowns.

RJWNL wrote:
Why? In the current market the A319neo would make an excellent replacement for the A380 ;-p

:rotfl:
Last edited by zkojq on Fri Apr 03, 2020 4:19 pm, edited 2 times in total.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:18 pm

RJWNL wrote:
Why? In the current market the A319neo would make an excellent replacement for the A380 ;-p


:D

If aircraft had 3-year lives instead of 30-yr lives, your A319 for A380 trade-out plan be a good one.

As I suggested the other day, few carriers are going to have the funds to buy what they want or need - for some years, not months.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:24 pm

morrisond wrote:
Sokes wrote:
In the next couple of weeks means maybe in three weeks. I guess they want to see first if growth in Corona cases continues exponential (widespread immunity soon) or flattens (long term fear).
I don't think they should cut production. Which airline wouldn't prefer A320 over B737Max, assuming it returns to service soon?
Boeing's balance sheet was much worse when they continued to manufacture planes which weren't allowed to fly. Also for the supply chain it's crucial that at least one OEM continues manufacturing. There are a lot of old narrowbodies that need replacement.
Is there some oscillation between euphoria and fear in humans?


Many airlines will prefer the 738 over the A320 - I believe it is more efficient (especially at shorter ranges) due to its seat advantage. You are also forgetting the cost of shifting a fleet over - which Airlines do not have the cash for. It would cost them a lot to cancel MAX orders and shift to A320 series.

Except for LOI (not firmed Order), that could cost them a lot for those that are firmed order . Even the MAX is grounded, now Airbus is struggling to build planes fast as enough as Boeing. They (Airbus) did suffer problems like this even before the MAX grounding.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:25 pm

This is a prudent move by Airbus. It will also allow them to catch up on the backlog of delayed frames as well.

IIRC.... the A321 NEOS that AA ordered were close to 6 months behind their original delivery skeds, and that was
before Hurricane Corona hit
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:29 pm

william wrote:
Didn't the A320 have a 7 or 8 year back log at present production rates? A few cancellations were expected but this is drastic.

Airlines will be back up and running in a year or two, but nobody is keen to accept new frames for at least 6 - 12 months. I don't expect that many cancellations but most orders will be deferred. There is no point in building aircraft only to store them for years (although Boeing partly believed otherwise last year).
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:35 pm

Does this affect the A220 production?

People have been saying that the C Series (A220) was a mean to complement the A320neo production that reaches capacity.

Obviously it is not the case any more.

Embraer has been very prudent with its E2 production ramp-up. Perhaps the Brazilians were right (or lucky) to be so.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:36 pm

morrisond wrote:
I'm not surprised - I think that was my guess from a few weeks ago. A320 at about 30-35 per month and MAX at about 10-20 assuming RTS.

Even at those rates I'm guessing they will be building some this year that won't be delivered until 2021 as travel returns. It will be airline specific.

In my opinion, Airbus will began delivering these newer jets to some customers particularly in China, US, India, Europe and customers with large Airbus orders like AirAsia first.
Last edited by 716131 on Fri Apr 03, 2020 4:40 pm, edited 1 time in total.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 4:39 pm

Sooner787 wrote:
This is a prudent move by Airbus. It will also allow them to catch up on the backlog of delayed frames as well.

IIRC.... the A321 NEOS that AA ordered were close to 6 months behind their original delivery skeds, and that was
before Hurricane Corona hit

There is also several Airbus customers that seen delays as well. Scoot, Jetstar, Volaris, LATAM and some other customers is also affected by their delays.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 5:06 pm

Sooner787 wrote:
This is a prudent move by Airbus. It will also allow them to catch up on the backlog of delayed frames as well.

IIRC.... the A321 NEOS that AA ordered were close to 6 months behind their original delivery skeds, and that was
before Hurricane Corona hit

I don't understand. How does rate reduction help in catch up on the backlog of delayed frames?
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 5:23 pm

pugman211 wrote:
Wow! That is a massive drop in capacity. I cant see it going that low tbh


I can, and this may only be the beginning. Airlines wont recover for a few years. And there will be a massive used market of newer planes to pull from. Including NEO and MAX imo.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 5:25 pm

TFA says it's not just A320 that is a target for rate cuts:

Suppliers for the A350 are being ordered to run for now at about half-speed, equivalent to 5 aircraft a month compared with about 9.5 before the crisis, the sources said. The A330 family, which recently slowed to 3.5 jets a month, could dip to two.
...
Cuts in production of wide-body, long-haul jets could be deeper and last longer as international travel restrictions compound an existing problem of surplus capacity.

I hope this does not last for too long...
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 5:52 pm

Revelation wrote:
TFA says it's not just A320 that is a target for rate cuts:

Suppliers for the A350 are being ordered to run for now at about half-speed, equivalent to 5 aircraft a month compared with about 9.5 before the crisis, the sources said. The A330 family, which recently slowed to 3.5 jets a month, could dip to two.
...
Cuts in production of wide-body, long-haul jets could be deeper and last longer as international travel restrictions compound an existing problem of surplus capacity.

I hope this does not last for too long...


Production rate cuts will happen across the board, no manufacturer will be immune. IMHO, this will be the new normal for quite some time. It remains to be seen how many cancellations we’ll see - there were dire predictions of mass cancellations after 9/11, SARS & GFC that never materialised, but this feels sadly different.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 6:59 pm

this will last for months, and affect aviation until a vaccine will be found. I suspect at least one year. then considering the world economy will be belly up not so many will want to travel. in addition new habits like remote working will be much more used also business travels will be cut significantly, forever. sad reality for aviation.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 7:22 pm

SQ789 wrote:
Sokes wrote:
I don't think they should cut production. Which airline wouldn't prefer A320 over B737Max, assuming it returns to service soon?

I read one of the articles that Airbus now can’t make planes fast enough a while ago (See the link From Bloomberg I found out). Even before the MAX grounding, I read another article that most airline like QR, BA etc is negotiating with large order from Boeing over frustration with Airbus.

https://www.bloomberg.com/news/articles ... ast-enough

A lot happens in 6 weeks. In mid-February there weren’t airlines around the world suspending operations and grounding whole fleets en masse. It will be interesting to see how much backlog remains when this all settles.

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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 7:28 pm

zkojq wrote:
IIRC this will be the first time ever that A320 production has been cut? :


A320 production was cut in 1991 after the gulf war crisis and subsequent recession. It was also cut in 2001.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 7:45 pm

scbriml wrote:
Revelation wrote:
TFA says it's not just A320 that is a target for rate cuts:

Suppliers for the A350 are being ordered to run for now at about half-speed, equivalent to 5 aircraft a month compared with about 9.5 before the crisis, the sources said. The A330 family, which recently slowed to 3.5 jets a month, could dip to two.
...
Cuts in production of wide-body, long-haul jets could be deeper and last longer as international travel restrictions compound an existing problem of surplus capacity.

I hope this does not last for too long...


Production rate cuts will happen across the board, no manufacturer will be immune. IMHO, this will be the new normal for quite some time. It remains to be seen how many cancellations we’ll see - there were dire predictions of mass cancellations after 9/11, SARS & GFC that never materialised, but this feels sadly different.

Agreed. This is industry wide. Boeing, Airbus (incl. A220), Embraer Textron, Gulfstream, Dassault, and the small players.

I've done some growth modeling and the earliest I can believe a return to prior demand is summer 2023. :cry2:

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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 7:56 pm

https://www.flightglobal.com/orders-and ... 92.article

Is this the beginning of a downward spiral for AirAsia?
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:02 pm

VV wrote:
https://www.flightglobal.com/orders-and-deliveries/airasias-fernandes-skeptical-about-deliveries-any-time-soon/137692.article

Is this the beginning of a downward spiral for AirAsia?

Spiral? AirAsia almost certainly has flexibility in deliveries. Every airline must differ deliveries. Even Delta is not accepting aircraft. There will be substantial decreases in aircraft production from all suppliers. AirAsia is simply negotiating in public.

There are more aircraft out there than will be needed for 6+ months. The concern of mine isn't recession.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:09 pm

VV wrote:
Embraer has been very prudent with its E2 production ramp-up. Perhaps the Brazilians were right (or lucky) to be so.


They don't have orders. That's why they are "prudent".
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:26 pm

In this market, who are the airlines that have a need for new metal? Where are the aviation financiers, queued to assist? Which airlines can self fund purchases from internal cash, not credit? None.

Every airline has experienced credit lines not being renewed (or advised they won't be renewed), although some replaced on different (more expensive / onerous) terms. Many have experienced them being withdrawn due to technical and actual covenant breaches.

Pre-shipment specialists have a bundle locked up in MAX, plus now more due to production rate slowdowns. Post-shipment specialists including lessors, have a massive number of customers on various levels of life support, plus aircraft awaiting delivery with now unwilling / disabled customers (you can only play the defects game to delay for so long).

In previous downturns, there have been well funded players taking the counter-cyclical position, and geographical pockets unaffected, or less affected. In previous downturns, lessors have sold parts of their portfolio to those unaffected / keen to grow.

This time it's universal, and commercial aviation specialist financiers and lessors are as likely to be casualties as airlines.

Lots of crystal balls working overtime, but for now we are in hiatus mode. Unless Airbus is willing to self-finance at least 50 plus A320's a month, effectively generating little of no short term positive cash flow during build and for 12 months post-build, while funding labour and parts, they have deep pockets (they don't) and brave senior management, shareholders, financiers and creditors.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:41 pm

lightsaber wrote:
VV wrote:
https://www.flightglobal.com/orders-and-deliveries/airasias-fernandes-skeptical-about-deliveries-any-time-soon/137692.article

Is this the beginning of a downward spiral for AirAsia?

Spiral? AirAsia almost certainly has flexibility in deliveries. Every airline must differ deliveries. Even Delta is not accepting aircraft. There will be substantial decreases in aircraft production from all suppliers. AirAsia is simply negotiating in public.

There are more aircraft out there than will be needed for 6+ months. The concern of mine isn't recession.


Just checked AirAsia X's fleet.

A lot of their aircraft are leased. Most probably they generate cash by doing a lot of sale and leaseback.
It works well during times of growth and the value of ordered aircraft is increasing. With the current situation, I think they cannot generate easy cash any more.

I am afraid they need to down size a lot and then slowly close the company during the next three years.
 
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:56 pm

VV wrote:
lightsaber wrote:
VV wrote:
https://www.flightglobal.com/orders-and-deliveries/airasias-fernandes-skeptical-about-deliveries-any-time-soon/137692.article

Is this the beginning of a downward spiral for AirAsia?

Spiral? AirAsia almost certainly has flexibility in deliveries. Every airline must differ deliveries. Even Delta is not accepting aircraft. There will be substantial decreases in aircraft production from all suppliers. AirAsia is simply negotiating in public.

There are more aircraft out there than will be needed for 6+ months. The concern of mine isn't recession.


Just checked AirAsia X's fleet.

A lot of their aircraft are leased. Most probably they generate cash by doing a lot of sale and leaseback.
It works well during times of growth and the value of ordered aircraft is increasing. With the current situation, I think they cannot generate easy cash any more.

I am afraid they need to down size a lot and then slowly close the company during the next three years.

AirAsia was returning aircraft after leases expired, so they were doing well enough.

They claim to have enough cash for 2020.

https://www.flightglobal.com/airasias-f ... 92.article

There are many more A320 operators who will go bankrupt before AirAsia. But if you are saying they won't be contributing to A320 deliveries, at least meaningfully, I agree. The above link notes the group had 14 deliveries scheduled in 2020 (including A330NEO), so they were already in, for them, slow growth.

It is more that JetBlue, Delta, and others are differing. I'm reading the paper WSJ about GE aviation furloughing half the workforce. There is a sudden drop in demand for GE/CFM engines and services.

An equivalent link: https://www.bing.com/amp/s/www.cnbc.com ... eighs.html

This is far bigger than one airline.

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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 8:57 pm

lightsaber wrote:
Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.


10.5 month year? Can someone explain?
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 9:15 pm

smartplane wrote:
In previous downturns, there have been well funded players taking the counter-cyclical position, and geographical pockets unaffected, or less affected. In previous downturns, lessors have sold parts of their portfolio to those unaffected / keen to grow.


I'm sure there's a Hedge Fund someone buying up aircraft cheaply, making vendors desperate for cash take a big haircut on the aircraft's book value.

BooDog wrote:
lightsaber wrote:
Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.


10.5 month year? Can someone explain?

In France people get six weeks of annual leave. :D
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 10:23 pm

It's just back to the production of 10 year ago....
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 10:38 pm

lightsaber wrote:
Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.


Something doesn't add up there - Airbus delivered 690 A320 family planes in 2019.
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Re: Airbus considering significant A320 rate reduction cut

Fri Apr 03, 2020 11:09 pm

scbriml wrote:
lightsaber wrote:
Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.


Something doesn't add up there - Airbus delivered 690 A320 family planes in 2019.

It see Airbus delivered 690 narrowbody, including 48 A220. 2019 A320 deliveries of 642, vs. 626 the prior year. So something isn't adding up with a rate boost but no boost... Yes, I'm aware of the issues with the A321 production/automation that should be fixed. This is why I prefer annual rates versus monthly as the definition of months*rate seems to change.

This in an industry that is always setup to surge an extra 15% to meet increased demand.

https://simpleflying.com/airbus-2019-orders-deliveries/

Either way, we'll find the rate will be cut.

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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 12:35 am

smartplane wrote:
In this market, who are the airlines that have a need for new metal? Where are the aviation financiers, queued to assist? Which airlines can self fund purchases from internal cash, not credit? None. Agreed - no airline currently can self fund, it will take getting back to 70% or higher of last years loads. That is the point where variable costs are cash positive, real cash will start to accrue only when at 85% of last years when the books get out of the red and actual profits begin.
----
Lots of crystal balls working overtime, but for now we are in hiatus mode. Unless Airbus is willing to self-finance at least 50 plus A320's a month, effectively generating little of no short term positive cash flow during build and for 12 months post-build, while funding labour and parts, they have deep pockets (they don't) and brave senior management, shareholders, financiers and creditors.


Self financing basically implies White Tails being loaned out to pretend things are OK. With all of the metal that is parked, building White Tails requires a death wish.
 
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 3:02 am

zkojq wrote:
I'm sure there's a Hedge Fund someone buying up aircraft cheaply, making vendors desperate for cash take a big haircut on the aircraft's book value.


I'm aware Warren Buffet stays away from aviation, but anybody knows what he is doing with all the accumulated cash. According to him there were no opportunities to buy at reasonable prices these last years, therefore he has lots of cash.
I assume there must be more like him. So I think you have a point. However opportunities at the moment are plentiful. Why to go for planes instead of a company for throwaway price?
Why can't the world be a little bit more autistic?
 
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Antaras
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 3:23 am

SQ789 wrote:
Will the production rate cut is both NEO and CEO type?

At this moment the ceo production mainly serve Wizz Air and Delta. So if those carriers want to boost the deliveries (unlikely), Airbus can cut some delivery slot for those carriers.

However I do think that the production rate of both ceo and neo would be cutted.
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RickNRoll
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 4:27 am

SQ789 wrote:
Sokes wrote:
I don't think they should cut production. Which airline wouldn't prefer A320 over B737Max, assuming it returns to service soon?

I read one of the articles that Airbus now can’t make planes fast enough a while ago (See the link From Bloomberg I found out). Even before the MAX grounding, I read another article that most airline like QR, BA etc is negotiating with large order from Boeing over frustration with Airbus.

https://www.bloomberg.com/news/articles ... ast-enough

That article was written a whole two months ago. That means that anything it says is completely out of date now.
 
WayexTDI
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 4:55 am

zkojq wrote:
BooDog wrote:
lightsaber wrote:
Just to be clear, Airbus 60/month is 630 A320, not 720. It is a 10.5 month year.


10.5 month year? Can someone explain?

In France people get six weeks of annual leave. :D

5 weeks a year by law, not 6.
 
sailsail
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 5:20 am

RJWNL wrote:
Why? In the current market the A319neo would make an excellent replacement for the A380 ;-p


Sad and I know you’re being sarcastic but hey might be true in some cases.
 
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scbriml
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 8:03 am

lightsaber wrote:
It see Airbus delivered 690 narrowbody, including 48 A220. 2019 A320 deliveries of 642, vs. 626 the prior year. So something isn't adding up with a rate boost but no boost...


Yes, my bad - I just looked at the "Single Aisle" total, completely forgetting the A220! How embarrassing. :oops:
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seahawk
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 10:10 am

36 is the first step, depending on how long the airline industry suffered, it could be less.
 
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glideslope
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Re: Airbus considering significant A320 rate reduction cut

Sat Apr 04, 2020 10:40 am

pugman211 wrote:
Wow! That is a massive drop in capacity. I cant see it going that low tbh


36 a month is optimistic IMO by the time we are 6m out from here. We are just entering the On-Ramp in this crisis. Aviation and it's Business Models will be forever changed from this. Some will make it. Many will not. Air Travel will go back to being a luxury form of transportation for a long time. Over expansion and the race to the bottom in the Fare Wars was not helpful.
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