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Ishrion
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Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 4:48 pm

Just announced in Airbus’ March summary.

The new average production rates going forward have been set as follows:
- A320 to rate 40 per month
- A330 to rate 2 per month
- A350 to rate 6 per month

https://www.airbus.com/newsroom/press-r ... nment.html

What were the original production rates for each aircraft?
 
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william
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:17 pm

From Leehman-

https://leehamnews.com/2020/04/08/airbu ... more-33100

• A320 to rate 40 per month (from 60-63);
• A330 to rate 2 per month (from 3.5)
• A350 to rate 6 per month (from 10)

Airbus backlog per its website for the A320 family is 6209. How much of that 6209 is solid or shifting sand?

Even at 40 a month, the A320 family will continue to be a rich source of cash.
 
pugman211
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:28 pm

The A320 rate is better than expected thankfully
 
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Revelation
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:29 pm

Ishrion wrote:
What were the original production rates for each aircraft?

https://www.reuters.com/article/us-heal ... SKBN21L161 said:

  • A320 was at 60 and heading for 63 in 2021 and planning to add a further one to two planes per month in both 2022 and 2023
  • A350 was at about 9.5 before the crisis
  • A330 recently slowed to 3.5 jets a month

Merging with your post:

  • A320: From 60 down to 40 (reduction of 33%)
  • A350: From 9.5 down to 6 (reduction of 37%)
  • A330: From 3.5 down to 2 (reduction of 43%)
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:38 pm

Ishrion wrote:
- A330 to rate 2 per month

Does this mean that KU's 8 ordered A338s will now take "forever" to deliver? :airplane:

"Everyone is entitled to my opinion." - Garfield
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:41 pm

william wrote:

He also gives an A220 update:

“We are preparing our operations in Mirabel for restarting at a progressive return to rate 4, which we plan to stabilize until mid-2021, while our plan in Mobile is unchanged for now.” Mobile is producing at 1-2/mo.

Wiki ( https://en.wikipedia.org/wiki/Airbus_A220 ) gives the previous goals:

Production is to be ramped up, reaching ten per month in Mirabel and four per month in Alabama by the mid-2020s.

I vaguely recall people here speaking of rate 8 for 2022, but can't find a quote right now.
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VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:44 pm

william wrote:
...
A330 to rate 2 per month (from 3.5)
...


There are 37 A330 ceo in the backlog.
 
VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:49 pm

Concerning A220, the initial target for a "break even" unit production cost was in 2025.

Does this mean the target is pushed to a later date?
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:56 pm

Devilfish wrote:
Ishrion wrote:
- A330 to rate 2 per month

Does this mean that KU's 8 ordered A338s will now take "forever" to deliver? :airplane:



Don't know, but KU added 5 x A359 in March.
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Polot
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 5:57 pm

VV wrote:
william wrote:
...
A330 to rate 2 per month (from 3.5)
...


There are 37 A330 ceo in the backlog.

I think only the remaining A330 MRTTs are left. The rest of the Ceo orders are very questionable even preCovid or already built but never delivered (HNA/Hong Kong).
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 6:13 pm

VV wrote:
Concerning A220, the initial target for a "break even" unit production cost was in 2025.

Does this mean the target is pushed to a later date?


IIRC breakeven was a function of ~10 units a month, not specifically the vague 'mid-decade' target.

I don't think production rates of anything by any manufacturer that far out are very solid.
 
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Devilfish
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 6:29 pm

scbriml wrote:
Don't know, but KU added 5 x A359 in March.

Hmmn... cancelling A359s and then reinstating 5 now does suspiciously look that their A338 is on the way "out"..... :stirthepot:

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https://d3lcr32v2pp4l1.cloudfront.net/P ... 799560.jpg


Reminds me of the HA order. :scratchchin:
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 7:31 pm

I interpreted the Leeham link that Mobile A220 production was still under discussion. In reality, the demand from Delta, JetBlue, and later Moxie/Breeze determines the ramp at Mobile.

I cannot imagine A330NEO production is break even. AirAsia X has a 'complicated relationship' with Airbus. So anything could happen there.

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Aither
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 7:40 pm

Good to see Airbus is not getting too much into the hysterical mindset.

I feared the A330 production would stop. With cheap oil price and a lower acquisition cost the A330 is quite interesting. On top there are plenty of pilots and mechanics trained for this aircraft. Plus cheaper parts. I think it's an aircraft worth to consider should the crisis have significant longer term effects , which I doubt.
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 7:50 pm

lightsaber wrote:
I interpreted the Leeham link that Mobile A220 production was still under discussion. In reality, the demand from Delta, JetBlue, and later Moxie/Breeze determines the ramp at Mobile.

I hadn't thought about it till your post, but man I can't think of a worse case scenario for Breeze. The business model as I understood it was non stops between under utilized secondary airports. It's hard to see how this model takes off in an environment of record low demand for air travel.
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 7:59 pm

VV wrote:
Concerning A220, the initial target for a "break even" unit production cost was in 2025.

Does this mean the target is pushed to a later date?


Probably. I guess Bombardier are thanking their lucky star for selling their CSALP share (and railway unit!), while it was worth something. If that negotiation was happening now, would it get as much?
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lhrnue
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 8:28 pm

This must mean that many airlines have agreed to deferred delivery dates already.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 8:48 pm

Revelation wrote:
lightsaber wrote:
I interpreted the Leeham link that Mobile A220 production was still under discussion. In reality, the demand from Delta, JetBlue, and later Moxie/Breeze determines the ramp at Mobile.

I hadn't thought about it till your post, but man I can't think of a worse case scenario for Breeze. The business model as I understood it was non stops between under utilized secondary airports. It's hard to see how this model takes off in an environment of record low demand for air travel.

I am a fan of Neeleman. I'm a huge fan of the A220.

So it pains me to say Breeze must delay their start. The question is, by how long? Any more detail gets off thread. Mobile must slow production. :cry2:

Keeping on thread, I believe Mobile production of the A220 will drop to 12/year.

I do think production will ramp back up, but not before a successful summer 2021.

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VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 9:07 pm

Do you think the A220 has become an unnecessary distraction to Airbus' management?
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 9:30 pm

VV wrote:
Do you think the A220 has become an unnecessary distraction to Airbus' management?

No, but they will be earning their pay as circumstances are changing.

It seems their big push was to get the supply chain to give cost reductions, but that will be hard with production rate at best stagnant.
Ref: https://www.flightglobal.com/air-transp ... 64.article

BFM will be shut down for approximately three weeks.
https://www.flightglobal.com/programmes ... 75.article

SaudiaGulf just dropped orders for 16 A220s.
Ref: https://simpleflying.com/saudigulf-airl ... 20-orders/
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smartplane
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 9:32 pm

Ishrion wrote:
Just announced in Airbus’ March summary.

The new average production rates going forward have been set as follows:
- A320 to rate 40 per month
- A330 to rate 2 per month
- A350 to rate 6 per month

https://www.airbus.com/newsroom/press-r ... nment.html

What were the original production rates for each aircraft?

These will be interim cuts, due to supply chain contractural obligations. If you have to pay for components, may as well build something with them.

Decision to increase CFM forward commitments to free up PW for the A220 and squeeze availability for MAX post-RTS may prove costly.

The aviation finance market has no capacity or inclination to fund 60x WB's and over 400x A32NEO in the next 12 months. As a customer with outstanding orders, even if finance is available, you are going to want to cancel / re-price new, reflecting the glut of used and nearly new aircraft on the market, depressing new prices.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 9:47 pm

smartplane wrote:
These will be interim cuts, due to supply chain contractural obligations. If you have to pay for components, may as well build something with them.

Decision to increase CFM forward commitments to free up PW for the A220 and squeeze availability for MAX post-RTS may prove costly.

The aviation finance market has no capacity or inclination to fund 60x WB's and over 400x A32NEO in the next 12 months. As a customer with outstanding orders, even if finance is available, you are going to want to cancel / re-price new, reflecting the glut of used and nearly new aircraft on the market, depressing new prices.

Yep, Faury is providing a big disclaimer:

He says the initial cutting of rates for the A320, A330 and A350 provide a definite plan to which the airframer can align its workforce, but adds that it could need adjustment and will probably be reviewed on a monthly basis.

He also said the crisis would “probably be a long one”.

Ref: https://www.flightglobal.com/air-transp ... 21.article
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tomcat
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 10:27 pm

Revelation wrote:
Yep, Faury is providing a big disclaimer:

He says the initial cutting of rates for the A320, A330 and A350 provide a definite plan to which the airframer can align its workforce, but adds that it could need adjustment and will probably be reviewed on a monthly basis.

He also said the crisis would “probably be a long one”.

Ref: https://www.flightglobal.com/air-transp ... 21.article


I'm wondering how Airbus will spread the reduced A320 output accross its multiple FALs. Logic would command to (definitely) close the least efficient ones but Airbus needs to take into account:
- French and German politics
- US tarifs
- China's expectation to be delivered from the Chines FAL.
- the possible limitations of each FAL in terms of output split between A320 and A321 vs the expected demand for each one of them.

On the other hand, I've always thought that the US FAL was more flexible when it comes to adjusting the workforce but it doesn't seem that this will play a big role in the decisions to be made by Airbus.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 10:38 pm

Quite simply, Tianjin will remain at 4 instead of ramping to 6. Mobile can stay at 4 also.

Toulouse can reduce slightly and Hamburg can reduce also to relieve pressure on the lines.

Iirc, Toulouse produces 16?? Hamburg produces 32??
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 10:58 pm

they're cutting rate as they're probably going to cut the production staff. and I'll bet this will be the next announcement as well.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 11:19 pm

Can they cut the working days instead of production staff?
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Wed Apr 08, 2020 11:19 pm

I always thought they blew up cutting A380 instead of A330
 
VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 7:19 am

Revelation wrote:
VV wrote:
Do you think the A220 has become an unnecessary distraction to Airbus' management?

No, but they will be earning their pay as circumstances are changing.

It seems their big push was to get the supply chain to give cost reductions, but that will be hard with production rate at best stagnant.
...


Initially they were projecting a production "break even" (unit prod cost = sale) around 2025.

It is very unlikely this target would be achieved before 2028.
Between now and then, the A220 program will still be digging the hole deeper.

According to a press article Airbus Canada is allowed to borrow up 1.5 billion dollars to fund its operation (click here).
It is now unclear if 1.5 billion dollars is enough to fund the operations until 2028.

The C Series (now A220) was launched in 2008. It will be 20 years old in 2028.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 7:33 am

I think it is not productive to understimate the A220 (see what I did there). Considering the fact that you proclaimed that the A220 program has failed I read every "statement" from you with a big grain of salt.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 7:37 am

Markets seems to "appreciate" the production cuts.

Maybe less drastic than expected.
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VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 7:48 am

RalXWB wrote:
I think it is not productive to understimate the A220 (see what I did there). Considering the fact that you proclaimed that the A220 program has failed I read every "statement" from you with a big grain of salt.


If you do not want to read my "statement" then you may want to read what the A220 program stakeholders said.

It is in a press article in French published recently in Montreal. It was well before the current crisis.

The link with a Google translation is here (click here).

QUOTE
    The new version of the joint venture has the capacity to borrow up to US $ 1.5 billion (C $ 2 billion) in the markets, enough to finance the investments required for the A220 to reach cruising speed. The program could lose money until 2025, according to Airbus.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 7:53 am

Devilfish wrote:
scbriml wrote:
Don't know, but KU added 5 x A359 in March.

Hmmn... cancelling A359s and then reinstating 5 now does suspiciously look that their A338 is on the way "out"..... :stirthepot:

Image
https://d3lcr32v2pp4l1.cloudfront.net/P ... 799560.jpg


Reminds me of the HA order. :scratchchin:


In the 2020 Orders thread, Momo1435 clarified KU actually cancelled their 5 remaining A359s. So no need to give up hope for their A338 order ;)
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 8:00 am

The A330 was built at a rate of 9 aircraft a month 4-5 years ago. It was at 4.5 aircraft a month last year.

2 aircraft a month is extremely low. The A350 will probably become a long term priority here. They were never going to stop A330NEO production entirely as they would have many long lead time parts in stock and in production to produce dozens of A330NEO aircraft.

However, it would not surprise me if Airbus is having discussions to end A330NEO production. The first step would be to contact the suppliers of these long lead time items to finish producing the current parts but for them to not start producing new parts. The second step would be to contact airlines and offer to change their order to A350's at a very good price.

Once the majority of the order book has shifted to the A350 then the remaining A330NEO orders will get fulfilled at the low production rate.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 8:09 am

lhrnue wrote:
This must mean that many airlines have agreed to deferred delivery dates already.

If those carriers are still alive to ask Airbus for a delivery deferral :duck:
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 8:15 am

Ishrion wrote:
- A330 to rate 2 per month
- A350 to rate 6 per month

I wonder if Boeing will cut the production rate of the 787 (well 99% that Boeing will do that), and what will be the cutted rate.
I am expecting a rate of 6-8 787 per month, similarly to Aib's quoted rate of 7 widebodies per month.
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VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 8:18 am

RJMAZ wrote:
...
However, it would not surprise me if Airbus is having discussions to end A330NEO production.
...


Interesting opinion.

I do not think they would stop it in the short term.

Unless Airbus is absolutely certain Boeing would never launch a short-medium haul mid-sized aircraft, they need to keep the A330neo on offer.

Isn't their mantra "A321XLR and A330neo is the solution to address the middle of the market"?
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 8:40 am

Antaras wrote:
Ishrion wrote:
- A330 to rate 2 per month
- A350 to rate 6 per month

I wonder if Boeing will cut the production rate of the 787 (well 99% that Boeing will do that), and what will be the cutted rate.
I am expecting a rate of 6-8 787 per month, similarly to Aib's quoted rate of 7 widebodies per month.


Well..right now Boeing are not producing any at all. So it remains to be seen what rate they decide on. Initially I thought Washington State would be the only production stop, but I guess ceasing their entire production run gives them pause to decide where airlines will be and their needs after lockdowns begin to end.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 9:20 am

RJMAZ wrote:
However, it would not surprise me if Airbus is having discussions to end A330NEO production. The first step would be to contact the suppliers of these long lead time items to finish producing the current parts but for them to not start producing new parts. The second step would be to contact airlines and offer to change their order to A350's at a very good price.

Once the majority of the order book has shifted to the A350 then the remaining A330NEO orders will get fulfilled at the low production rate.



Do you think Boeing is thinking of doing the same for the 777X?
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 9:42 am

VV wrote:
RJMAZ wrote:
...
However, it would not surprise me if Airbus is having discussions to end A330NEO production.
...


Interesting opinion.

I do not think they would stop it in the short term.

Unless Airbus is absolutely certain Boeing would never launch a short-medium haul mid-sized aircraft, they need to keep the A330neo on offer.

Isn't their mantra "A321XLR and A330neo is the solution to address the middle of the market"?

I fully agree.
And how should they stop production of the type? It entered service in Dec. 2019. Rolls Royce won't agree.

"Between the 2004 launch of the Dreamliner and the A330neo launch in 2014, the market was split almost equally between both, with between 900 and 920 A330ceos sold against 950 to 1,000 787-8/9s.[95]
Between 2014 and the neo first flight in October 2017, the A330/A330neo had 440 orders (excluding freighters) compared to 272 for the 787-8/9 (excluding the -10), or since the 787 launch, 1211 A330ceo/neos compared to 1106 787-8/9s.[96] "
https://en.wikipedia.org/wiki/Airbus_A330neo#Market

With all the trouble engine makers are facing I'm not surprised customers have a wait and see approach. Last year the economy was not good. But overall these numbers do not suggest to me that the A330 is Airbus's new A380.
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Scotron12
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 10:35 am

Agree too..in that the A330NEO did not cost AIRBUS a whole lot of investment. So producing 2 per month in this current climate is doing quite well.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 10:45 am

I'm expecting everything can and will be adjusted further, depending on worldwide pandemic and economic progress. What we see are the next two weeks prediction, kind of.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 11:21 am

[*] A320: From 60 down to 40 (reduction of 33%)
[*] A350: From 9.5 down to 6 (reduction of 37%)
[*] A330: From 3.5 down to 2 (reduction of 43%)

Last week there was an announcement about the A32X going down more, to 30-36. Today we see down to 40.

I wonder if meanwhile Airbus got any phone calls from MAX customers.
 
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 11:22 am

Scotron12 wrote:
Agree too..in that the A330NEO did not cost AIRBUS a whole lot of investment. So producing 2 per month in this current climate is doing quite well.


And while it drives unit cost up over a lifetime they'd still be making money with it, and having competition keeps sales prices of the 787 down. So strategically it makes probably sense to keep the line open as long the numbers don't turn red.

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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 11:28 am

TaromA380 wrote:
[*] A320: From 60 down to 40 (reduction of 33%)
[*] A350: From 9.5 down to 6 (reduction of 37%)
[*] A330: From 3.5 down to 2 (reduction of 43%)

Last week there was an announcement about the A32X going down more, to 30-36. Today we see down to 40.

I wonder if meanwhile Airbus got any phone calls from MAX customers.

Max customers don’t want planes in the near term anymore than Neo customers.

There was never an announcement last week about rates going down that low. There were media reports about Airbus rates discussions and the possibility that they may go down that low but nothing was set in stone. 40 was probably decided after discussions with current customers and suppliers, and even the CEO makes it clear this is just initial adjustments and further changes are still a possibility.

Priority for OEMs right now is finding a stable production rate that minimizes white tails and maximizes revenue. Priority for airlines right now is surviving and discussing with the OEMs their options for how to deal with their current orders that the are contractually on the hook for but may not necessarily want/can afford at the moment. Few airlines are going to be inquiring about ordering new planes at the moment-sales teams are going to be busy with current customers.
 
TaromA380
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 12:15 pm

Polot wrote:
Max customers don’t want planes in the near term anymore than Neo customers.

We cannot know what's happening behind the scene.

If all customers don't want planes anymore, then we would have seen production rate dropping to zero.

I guess not all customers have the same profile, ressources, support, ambition and so on. Beside, a crisis is always the ideal landscape for clever people.

So, if ever not all the customers doesn't want planes anymore, then there could be some Max customers speculating the moment for switching camp, for a healthy 'crisis discount'. Can we absolutely rule this out ?
 
RJMAZ
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 12:49 pm

VV wrote:
RJMAZ wrote:
...
However, it would not surprise me if Airbus is having discussions to end A330NEO production.
...


Interesting opinion.

I do not think they would stop it in the short term.

Stopping production is more than just market demand. A manufacturer can simply reduce the price low enough to increase demand.

As a manufacturer increases production rate the price per aircraft drops and profit increases. Lets say at rate 2 Airbus no longers makes a profit on each A330NEO. Swapping customers to the A350 would allow the rate to go from 6 to 8. This rate increase might increase the profit margin by 5% on each A350. Ending A330NEO production earns Airbus money.

A perfect existing example of this is with the A300. It could have been kept in production by selling them extremely cheap increasing demand. Airbus however decided to end production and airlines bought the more expensive and more capable A330 at a higher profit. It was a smart decision in the long run even thought the A300 had its own market segment. Ending A330NEO production would also mean Airbus is leaving that market segment.

enzo011 wrote:
Do you think Boeing is thinking of doing the same for the 777X?

Definitely. Every month that goes by the manufacturers will get a better indication of the future market. Demand might drop to the point where Boeing might make more profit swapping 75% of the 777x orders to 787-9/10's and then letting the remaining 25% of customers buy the A350. This will allow the 787 production rate to be higher and increase the profit per aircraft.
 
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keesje
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 12:55 pm

.
Unsurprisingly not holding back on the A220. They are in the middle of a A220 ramp up for 2020-2030.

Image
source: Airbus video
"Never mistake motion for action." Ernest Hemingway
 
VV
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 1:05 pm

RJMAZ wrote:
...
Stopping production is more than just market demand. A manufacturer can simply reduce the price low enough to increase demand.
...


Are you suggesting Airbus should lower A330neo pricing further to make the aircraft more attractive?
 
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flee
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 2:27 pm

scbriml wrote:
Don't know, but KU added 5 x A359 in March.

AFAIK, they cancelled 5 x A359s and postponed their first A338 delivery.
 
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Revelation
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Re: Airbus Cuts A320, A330, and A350 Production Rate

Thu Apr 09, 2020 3:34 pm

VV wrote:
Initially they were projecting a production "break even" (unit prod cost = sale) around 2025.

It is very unlikely this target would be achieved before 2028.
Between now and then, the A220 program will still be digging the hole deeper.

According to a press article Airbus Canada is allowed to borrow up 1.5 billion dollars to fund its operation (click here).
It is now unclear if 1.5 billion dollars is enough to fund the operations until 2028.

The C Series (now A220) was launched in 2008. It will be 20 years old in 2028.

And DC-9/717 is dead, 737 is 60 years old, A320 is 40 years old.

A220 has pretty much everything a vendor would want. Great tech, especially the engines and cockpit. Great efficiency. Strong market acceptance. Not much competition except for a few customers wed to 737, and then E2 and MRJ. Very low investment, at least from Airbus's point of view.

The only issue is profitability. BBD told the world program profitability was less than anticipated and sold out early because of it. Lots of early orders were made under duress so not bound to be profitable. Sluggish ramp up largely due to BBD's relatively small footprint and its inability to invest. Low production volume makes it difficult to burn past the early orders and get to more profitable ones and makes it hard to pressure the supply chain for givebacks.

But it's a far easier problem to address than issues with poor/no profitability tied to weak tech, weak market acceptance, high competition, high development cost, etc. I'd rather be figuring out how to manage A220's issues than E2's or MRJ's.

I doubt anyone expects $1.5B to last to 2028. We also have Airbus saying they were ready to invest EUR 500M to EUR 1B in 2020 alone ( ref: https://simpleflying.com/airbus-a220-e1 ... nvestment/ ). While Airbus has its own worries, things will bounce back and the fundamentals look strong for A220 relative to its market segment. I think from Airbus's and from Canada's point of view, A220 is "too big to fail".
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