When rumors become reality: Airbus will increase production of its A320 family to 75 aircraft per month:

“These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,” said Guillaume Faury, Airbus Chief Executive Officer. “Looking beyond 2022, we see continuing strong growth in commercial aircraft demand driven by the A320 Family. As a result we are now working with our industry partners to increase A320 Family production rates further to 75 aircraft a month in 2025. This ramp-up will benefit the aerospace industry’s global value chain.”

Press release: https://www.airbus.com/en/newsroom/pres ... 22-results

PepeTheFrog wrote:

When rumors become reality: Airbus will increase production of its A320 family to 75 aircraft per month:

“These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,” said Guillaume Faury, Airbus Chief Executive Officer. “Looking beyond 2022, we see continuing strong growth in commercial aircraft demand driven by the A320 Family. As a result we are now working with our industry partners to increase A320 Family production rates further to 75 aircraft a month in 2025. This ramp-up will benefit the aerospace industry’s global value chain.”

Press release: https://www.airbus.com/en/newsroom/pres ... 22-results

That is the right move. In my opinion, they need to achieve a production rate that is commensurate with the backlog size.

I think if they do not increase the production rate some of the backlog might be considered as iffy. So, in my opinion it is logical to increase the production rate if their backlog is solid.

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Wow this is great news for Airbus! I hope they announce at least a small bump in A220 production soon as well in the next couple of months.

PepeTheFrog wrote:

When rumors become reality: Airbus will increase production of its A320 family to 75 aircraft per month:

“These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,” said Guillaume Faury, Airbus Chief Executive Officer. “Looking beyond 2022, we see continuing strong growth in commercial aircraft demand driven by the A320 Family. As a result we are now working with our industry partners to increase A320 Family production rates further to 75 aircraft a month in 2025. This ramp-up will benefit the aerospace industry’s global value chain.”

Press release: https://www.airbus.com/en/newsroom/pres ... 22-results

Also in the figures -
Airbus Commercial -
Revenue - E8,541M
EBIT - E1,242M
An Airbus Commercial margin of 14.5%....

Rgds

A321XLR delayed from late 2023 to 2024 because of safety concerns on the "novel fuel tank needed." https://www.reuters.com/business/aerosp ... 022-05-04/

https://www.ft.com/content/4fe8fee2-719 ... c8e08fcdf0
Per the Financial Times and other sources, the increase in production rate will result in a second final assembly line in Mobile, Alabama.

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

VV wrote:

That is the right move. In my opinion, they need to achieve a production rate that is commensurate with the backlog size.

I think if they do not increase the production rate some of the backlog might be considered as iffy. So, in my opinion it is logical to increase the production rate if their backlog is solid.

I agree. Increasing the production rates for the 32X family will certainly alleviate the anxieties of fleet replacement needs most airlines have. I think companies like DL are happier to know they will not have to settle for something simply on the basis of slot availability.

I have said it before, but I do firmly believe that opening production capacity will only further drive 32X sales.

And to echo other posters here, now to do the same for the 220 lines!

WayexTDI wrote:

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

Then theres the obligatory 2 - 3 week summer break and probaby more statutory holdiays than the US

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Here's something for a trivia buff to work out. What was the first year that saw the delivery of 800 commercial passenger aircraft total. Could also identify prop vs jet 800s too.

Do they have a breakdown on which FAL is going to do how many frames?

Oh good. Now B6 doesn’t need to buy spirit and all can be well on a.net and APC again.

qf2220 wrote:

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Here's something for a trivia buff to work out. What was the first year that saw the delivery of 800 commercial passenger aircraft total. Could also identify prop vs jet 800s too.

1999 ?

WayexTDI wrote:

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

Usually the first 2 weeks of august, for the overall maintenance of the FALs, paint shops ...

Regards

What rate is Tianjin doing please?

First: Wow 14.5% profit margin with relatively reduced production of 320, and a massively depressed wide body market (i dont think A330 really push up margin, quite the contrary and also A350 might not be that profitable) is a crazy good result.
Airbus will be printing money for the forseeable future if they have no troubles.

Second: So possibly in 2025 but latest in 2026 Airbus could deliver 1000 aircraft per year with around 800 A32X, 100 A220 and around 100 wide bodies. That is crazy.

75/month is massive, though not nearly so much when you consider the backlog that the A320 family has earned. I wonder how long they will be at this production rate for. JL in particular was always voicing a very conservative view on this issue, prioritizing long term rate stability over short term hikes.

astuteman wrote:

An Airbus Commercial margin of 14.5%....

Engineer and innovate to develop the best products and profits will follow.

Amazing, when Airbus started A320 program they expected to sell around 700 pieces, and now 35 years after first flight they will produce 800 every year, that money printer

trex8 wrote:

WayexTDI wrote:

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

Then theres the obligatory 2 - 3 week summer break and probaby more statutory holdiays than the US

That's a myth: the "traditional" August production break goes back to decades ago when that down-time was used to maintain/upgrade machinery. Nowadays, maintenance is done throughout the year.
As far as employee vacation, any company will schedule them so as not to have a hard down time; Christmas might be the only exception.

Correct, Airbus has a shutdown for 2 weeks in summer. Usually weeks 30 & 31. And they close at Xmas just between Xmas and New year.

Airbus better watch out. Boeing has almost 40 years of experience sizing up the replacement for the 737.

Wow. Just wow.

This is going to put tremendous price pressure on A320CEOs and 737NGs. It will also reduce Boeing's 'advantage' of short term slot availability.

Hopefully we hear about an A220 production surge next quarter.

Bummer on the A321xLR delays, but I am a cynic on big project schedules; in particular when regulation or "just in time" supply chains are used.

I believe a disproportionate share of the new slots will be A321xLRs.

WayexTDI wrote:

FiscAutTecGarte wrote:

Wow.... imagine 800+ deliveries a year of just one family of aircraft (by 2025, effectively A320/A321). (11months * 75 = 825).

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

Converting Airbus monthly to annual production is still 10.5 to 11 times the monthly figure while Boeing and other US aerospace companies multiply by 12 and surge (overtime) to accommodate holiday shutdowns. So an Airbus rate must be discounted 8% to 12%. So this will be 790 to 825 per year, which is an impressive increase.

Lightsaber

wingman wrote:

Airbus better watch out. Boeing has almost 40 years of experience sizing up the replacement for the 737.

Ouch!

zkojq wrote:

Engineer and innovate to develop the best products and profits will follow.

Tell that to Bombardier. Sometimes it's best to take the "easy" upgrade and execute it well while your competitor can't stop screwing up.

cledaybuck wrote:

zkojq wrote:

Engineer and innovate to develop the best products and profits will follow.

Tell that to Bombardier. Sometimes it's best to take the "easy" upgrade and execute it well while your competitor can't stop screwing up.

The 320 is the stiletto Airbus has been inserting into Boeing's tummy millimeter by millimeter for four decades and just when you think Boeing is going to feint and counter they instead grab Airbus' hands and help them redirect straight to the aorta. Jack Welch must be dancing jigs in the grave reminding his slow horses to talk fancy and cash out those options while they still can. Not even Gary Oldman could save them now (that one's for you scbriml).

If I look at the orderbook, there are still a lot of soft orders, like AirAsia, and even powerhouse IndiGo I don't see them taking all the aircraft they ordered, judging how difficult they had it to pay their handful of ATRs. VietJet, Lion Air, all question marks. If I were them I'd stabilize on 60 so I am sure I get paid right after finishing them.

majano wrote:

https://www.ft.com/content/4fe8fee2-7193-4f1f-9fb3-b5c8e08fcdf0
Per the Financial Times and other sources, the increase in production rate will result in a second final assembly line in Mobile, Alabama.

I wonder if they will use the Belugas and Beluga XL to transport aircraft parts from TLS, XFW. I also wonder if there will be Belugas between YMX and Mobile moving A220 parts?

wingman wrote:

Airbus better watch out. Boeing has almost 40 years of experience sizing up the replacement for the 737.

Best response of thise thread!

WayexTDI wrote:

trex8 wrote:

WayexTDI wrote:

Does Airbus still really work 11 months a year? Or is it just the official timeframe?
I can see 2 weeks max for Christmas; but not sure when else they would lose an additional 2 weeks.

Then theres the obligatory 2 - 3 week summer break and probaby more statutory holdiays than the US

That's a myth: the "traditional" August production break goes back to decades ago when that down-time was used to maintain/upgrade machinery. Nowadays, maintenance is done throughout the year.
As far as employee vacation, any company will schedule them so as not to have a hard down time; Christmas might be the only exception.

Dont tell that to the guys in Merseyside, and its almost certainly as true in Toulouse and Hamburg. Same traditions are difficult to break!

An Airbus spokesperson said they have already adapted production activity by, “bringing forward the summer shutdown and extending the Easter break for production staff.”

https://www.deeside.com/easter-break-ex ... ft-demand/

"The former A380 production facility at the Broughton West Factory will become a new single aisle production facility."

https://www.deeside.com/hundreds-of-new-jobs-expected-for-broughton-as-airbus-confirms-a320-production-ramp-up/

wingman wrote:

Airbus better watch out. Boeing has almost 40 years of experience sizing up the replacement for the 737.

I can’t tell if your comment was in jest, but I’ll take the bait. Boeing is in a piss poor position. This production increase further pressures Boeing on whatever slot advantage they had. The Max is a less competitive product, with less range, less flexibility, lower tech, and less room (now zero room) for any growth. They aren’t remotely close to being in a position to replace the 737.

People forget the planned rate increase to 15 for the A220. Its a NB after all. So NB production would be 90. Rumors have it that the 75 will go to 80.

This should further relieve any slot constraints.

astuteman wrote:

PepeTheFrog wrote:

When rumors become reality: Airbus will increase production of its A320 family to 75 aircraft per month:

“These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment,” said Guillaume Faury, Airbus Chief Executive Officer. “Looking beyond 2022, we see continuing strong growth in commercial aircraft demand driven by the A320 Family. As a result we are now working with our industry partners to increase A320 Family production rates further to 75 aircraft a month in 2025. This ramp-up will benefit the aerospace industry’s global value chain.”

Press release: https://www.airbus.com/en/newsroom/pres ... 22-results

Also in the figures -
Airbus Commercial -
Revenue - E8,541M
EBIT - E1,242M
An Airbus Commercial margin of 14.5%....

Rgds

First time in history

Boeing current market cap: $ 90.177B

Airbus current market cap: $ 90.735B

Noshow wrote:

What rate is Tianjin doing please?

Around 6 aircraft per month I believe.

egnr wrote:

"The former A380 production facility at the Broughton West Factory will become a new single aisle production facility."

https://www.deeside.com/hundreds-of-new-jobs-expected-for-broughton-as-airbus-confirms-a320-production-ramp-up/

Plenty of space for the FAL.

I'd love to know the plans for major component production increases. Some I found links:

500 more jobs in Wales for wing production:
https://www.msn.com/en-gb/finance/other ... uxbndlbing

Both engine makers have reached agreements for 2024 volumes:

https://ca.finance.yahoo.com/news/safra ... 03036.html

I haven't seen announcements on landing gear or avionics yet. I would assume Airbus talked with all Tier1 vendors and they talked with Tier 2/3 to ensure that this will happen.

Duke91 wrote:

People forget the planned rate increase to 15 for the A220. Its a NB after all. So NB production would be 90. Rumors have it that the 75 will go to 80.

This should further relieve any slot constraints.

No confirmation on rate 6 (deliveries seem lower).
Rate 14 is the plan I would love to see more on the A220, but I expect no announcement before Farnborough. It certainly won't be rate 14 in 2025.

I could see a small further increase for the A320.
https://dsm.forecastinternational.com/w ... rly%202023.

This does take "the wind out of Boeing's slot availability advantage." I am concerned about too much narrowbody production. I've been through bad aerospace over-supply situations. Those downturns are not fun.

Lightsaber

Late addition to my last post,
I would assume this production increase would focus on increasing A321xLR production capacity.

wingman wrote:

Airbus better watch out. Boeing has almost 40 years of experience sizing up the replacement for the 737.

Recent events indicate they are not so good at things anymore. And I'm an old Boeing fan including the747 & 737 as my favorites for years.

That Boeing decision to warm over the 737 is looking so great right now.

Chemist wrote:

That Boeing decision to warm over the 737 is looking so great right now.

I mean at that time, it seemed obvious rather than doing an NSA that would not be that much more efficient, especially it won't give you that sweet sweet profit. On hindsight maybe. Who would tell us that the NSA wouldn't have the same issues as the 787, 777x, kc46 etc? Maybe in the alternative world, we would all be saying: "well, maybe they shouldn't have done the NSA and gone for another round of warmed up 737?

It would took them between 7-8 years to delivered all the NEOs if they produce 75 aircraft per month. So around 2029-2030.

Assuming there are 0 new orders from today to 2029-2030. Which obviously it ain't gonna happen.

Duke91 wrote:

Chemist wrote:

That Boeing decision to warm over the 737 is looking so great right now.

I mean at that time, it seemed obvious rather than doing an NSA that would not be that much more efficient, especially it won't give you that sweet sweet profit. On hindsight maybe. Who would tell us that the NSA wouldn't have the same issues as the 787, 777x, kc46 etc? Maybe in the alternative world, we would all be saying: "well, maybe they shouldn't have done the NSA and gone for another round of warmed up 737?

Good points

Lets have a look at the numbers in 2026 (if all the A and B ramp ups go as planned):

Airbus will be delivering around 825 A32X (11x75), 154 A22X (11x 14) and about 110 WBs (7-8 A350 and 2-3 A330 per month x11), that is a grand total of 1089 aircraft. Boeing will deliver around 600 737s (12x 50), and 168 WBs (8x 787s, 3x 77F/X and 3x 767s) for a total of 768 aircraft. That gives Airbus a marketshare on deliveries of 58.6%.

Now in the NB segment the tilt is even more dramatic: 979 deliveries for A and 600 deliveries for B which gives Airbus a marketshare of 62%. That is a lot of difference between the two. Clearly with EMB in the mix both will lose a bit on overall market share in the whole NB market but that is a dire development.

Luckily Boeing has the 767 that keeps the WB segment heavily tilted in Boeings favour but this will end in 2028. After this Boeing will still be on par and has the better product range if they can capitalize on the 77X.

Airbus biggest hole is the market between the 32X and the 350 and if Airbus can not secure more 330neo sales needs to do something there. Boeing clearly needs to find a solution for the 150-200 seat market. The goal should be a 1500nm 737-8200 successor. Currently the 8200 seems to be the best aircraft in this size/range category and developing an even superior product (a tiny bit larger but way lighter) will be a massive success.

Call me pessimistic, A320 production isn't the only worry for Boeing. I think Boeing doesn't have adequate responses to the A220, A321. A350-900 and A350-1000. And the 787 faces healthy pressure form the A330NEO.

The usual "yes, but Boeing dominates WB's", "in service market share looks fine", "only deliveries count", "defense will compensate" "stock value tells it all" and customer loyalty justifications have been deteriorating in recent years.

Time for (*big) changes as far as I can see, realism iso perception management seems to surface in recent weeks..

lightsaber wrote:

Late addition to my last post,
I would assume this production increase would focus on increasing A321xLR production capacity.

Don't you mean the A321 in general? The demand for the xlr is only a fraction of the overall demand for the A320 family. OTOH the A321 including the xlr now makes up more than half of the order book and that's where all the bottle necks need to be lifted. And I don't think there will be a big challenge to supply the xlr-specific parts in sufficient quantities. And I wouldn't be surprised that Airbus would dedicate one of its assy line to the xlr to run the xlr assembly as smoothly as possible.

lightsaber wrote:

egnr wrote:

"The former A380 production facility at the Broughton West Factory will become a new single aisle production facility."

https://www.deeside.com/hundreds-of-new-jobs-expected-for-broughton-as-airbus-confirms-a320-production-ramp-up/

Plenty of space for the FAL.

I'd love to know the plans for major component production increases. Some I found links:

500 more jobs in Wales for wing production:
https://www.msn.com/en-gb/finance/other ... uxbndlbing



Lightsaber

If this comes off, will this be the return of full size passenger plane full aircraft assembly to the UK for the first time since the RJX expired in 2001?

scouseflyer wrote:

If this comes off, will this be the return of full size passenger plane full aircraft assembly to the UK for the first time since the RJX expired in 2001?

I very much doubt it. It will more likely be an additional flow line for wing manufacturing

Duke91 wrote:

People forget the planned rate increase to 15 for the A220. Its a NB after all. So NB production would be 90. Rumors have it that the 75 will go to 80.

This should further relieve any slot constraints.

The only reference to the A220 in the OP's linked press release was that they delivered eleven of them 1Q22. No reference to lowered costs nor imminent rate increases.

trex8 wrote:

WayexTDI wrote:

trex8 wrote:

Then theres the obligatory 2 - 3 week summer break and probaby more statutory holdiays than the US

That's a myth: the "traditional" August production break goes back to decades ago when that down-time was used to maintain/upgrade machinery. Nowadays, maintenance is done throughout the year.
As far as employee vacation, any company will schedule them so as not to have a hard down time; Christmas might be the only exception.

Dont tell that to the guys in Merseyside, and its almost certainly as true in Toulouse and Hamburg. Same traditions are difficult to break!

An Airbus spokesperson said they have already adapted production activity by, “bringing forward the summer shutdown and extending the Easter break for production staff.”

https://www.deeside.com/easter-break-ex ... ft-demand/

This article is from April 2020...I suggest you check your sources before you post links.