Airbus backs jet output target amid supplier concerns

Airbus backs jet output target amid supplier concerns

Airbus has said it wants to be in shape to raise benchmark A320-family output by 18% to 47 jets a month by July, but the goal has already slipped to the fourth quarter, according to analysts, with some saying it could slip further, Trend reports citing Reuters.

“It looks like the rate of 47 is slipping to the right,” said one supply chain source.

Another supplier said the rate was beyond reach for 2021.

Airbus was producing 60 of the jets a month before the spread of COVID-19 grounded airline fleets earlier this year.

Asked about the output plans at a news conference on annual deliveries, Chief Executive Guillaume Faury said current plans pointed to an increase in the second half of the year, but noted “a lot of uncertainties” because of the coronavirus crisis.

Chief Operating Officer Michael Schoellhorn last month told the Hamburger Abendblatt newspaper that output “could ... rise a little later or flatter” than previously anticipated.

An Airbus spokesman said no decision had been made.

Airbus plans a virtual briefing with the heads of some its major suppliers in coming days in a move expected to set the manufacturing tone for the coming year, industry sources said.

It is involved in a stand-off with some suppliers who want guaranteed or upfront payments for parts to support any output increase, in case volatile demand falls again. Those companies are in turn receiving similar demands from their own suppliers.

That is making it harder for Airbus to confirm the timing of an increase, sources said, though it is focusing for now on maintaining the flexibility to act whenever needed.

FINANCIAL PRESSURE
Delaying the planned increase in production to 47 aircraft a month would prolong financial pressure just as Airbus is struggling to reach targets for job reductions, especially at its headquarters in France and in German plants, sources said.

Airbus has extended a deadline for voluntary redundancies as part of a restructuring plan affecting up to 15,000 jobs.

Faury is expected to force significant cuts among executive posts as part of the biggest restructuring in the company’s history as it contends with a coronavirus slump in air travel.

The French CEO on Friday said that the restructuring was “making progress, on track”.

Despite renewed lockdowns in Europe, Airbus confirmed its position as the world’s largest planemaker with stronger than expected deliveries of 566 jets last year.

Subscribe to Trend in Google News! Subscribe
Russian, Iranian top diplomats confirm commitment to Vienna talks to restore JCPOA - MFA
Russian, Iranian top diplomats confirm commitment to Vienna talks to restore JCPOA - MFA
Moscow welcomes ‘progress’ on Iran nuclear deal
Moscow welcomes ‘progress’ on Iran nuclear deal
Parties narrowing differences in Vienna talks - Iran's top negotiator
Parties narrowing differences in Vienna talks - Iran's top negotiator
Loading Bars
Latest
Israel's defence chief isolates at home after positive COVID test
Former ambassador sentenced to 10 years in prison in Azerbaijan
Azerbaijani holding training session for reservists (PHOTO/VIDEO)
Rising influence of limited elite groups in Kazakhstan becomes serious security threat - Tokayev
Turkmen factory discloses construction materials production data
Azerbaijan enters new stage of strategic development - official
Georgia’s fuel prices remain relatively low
Kazakhstan to create secondary market for distressed asset purchase and sale
SOCAR Turkey eyes capacity expansion for STAR Refinery
Russia reports 49,513 daily COVID-19 cases, a new high since start of pandemic
SOCAR’s STAR Refinery expands its list of oil grades
Kazakhstan needs tough policy to demonopolize economy - president
Iran reduces electricity subsides for high consuming users
Azerbaijan unveils value added growth in non-oil industry in 2021
Georgia names main trading partners by export destinations in 2021
Azerbaijan discloses state budget expenditure growth in 2021
Turkmenistan-Turkey trade volume increased in 11M2021
Goals of Advisor to French President's Cabinet, EU Special Representative for S.Caucasus's visit to Azerbaijan named (Exclusive)
Azerbaijan-Armenia border demarcation is priority - Russian MFA
Greenhouse sector in Georgia may soon get needed backup from USAID, UNDP, ADB
Russia is consistently making efforts to resolve situation on Azerbaijan-Armenia border - MFA
Nar supports the biggest platform of Azerbaijani audiobook library
Kazakh National Bank to ensure balance of foreign exchange market until full restoration of confidence in tenge
SOCAR Turkey updates on Merkury project
Turkish officials observe Azerbaijan’s pavilion at Dubai Expo 2020 (PHOTO)
Intel plans $20 bln chip manufacturing site in Ohio - sources
Uzbek Central Bank shares data on volume of cash in circulation
Turkmen Health Ministry opens tender to purchase medical oxygen cylinders
Ukraine discloses volume of Azerbaijani investments in economy
Number of employment contracts increases in Azerbaijan - minister
Georgia sees increase in producer price index
India to help Sri Lanka with USD 2.4 billion to overcome financial crisis: Report
‘Mauritius prime example of India’s approach to development partnership’, says PM Modi
World Bank to launch co-op program with Uzbekistan for 2022-2026
Azerbaijan considers extending term of suspension of inspections in field of business
Turkmenistan is primary supplier of jet fuel to Georgia - Union of Oil Product Importers
Turkmenistan intends to supply electricity to third countries via Uzbekistan and Iran
SOCAR reveals volume of gas exports to Europe
Azerbaijan commissions new military facilities in liberated Kalbajar district (PHOTO/VIDEO)
Oil production up at Azerbaijan’s Bahar-Gum Deniz
Kazakhstan failed to create diversified economy – President Tokayev
Uzbekistan eyes implementing projects with Japan in leather and footwear industry
Bahar Energy shares data on well fund in Azerbaijan
Kazakh president calls on local business circles to jointly build new economic policy
Number of active oil wells in Azerbaijan’s Bahar-Gum Deniz block down
Georgia publishes COVID-19 data for January 21
Central Bank of Azerbaijan acts prudently to curb inflation - Gazprombank
Azerbaijani oil prices increase
Bahar Energy reveals figures for natural gas wells
Uzbekneftegaz JSC reveals volume of production planned for 2022
Kazakhstan reduces production of diesel fuel
Turkmenistan has great potential for green energy initiatives – USAID
Georgia, Azerbaijan discuss customs cooperation
USAID eager to partner with Turkmenistan on low carbon development
Only Azerbaijani citizens older 18 allowed to visit liberated lands - adviser to minister
Azerbaijani currency rates for January 21
Uzbekistan shares domestic COVID-19 data for January 20
Oil falls as U.S. inventory build prompts profit-taking
MFA of Kazakhstan issues statement on European Parliament resolution on situation in country
Japan approves Pfizer's COVID-19 vaccine for children aged 5-11
2022 can be called the year of investments in Karabakh - Country Managing Partner of PwC (Interview) (PHOTO/VIDEO)
16,284 more COVID-19 cases reported in Kazakhstan
China, Russia delay U.S. bid to sanction North Koreans at U.N.
Turkey confirms 71,843 daily COVID-19 cases
New vaccine passport rules in France to come into power from next week
U.S. FAA approves 78% of planes for low-visibility landings near 5G airports
Gloomy Netflix forecast erases much of stock's pandemic gains
Turkey, El Salvador sign 6 agreements during Bukele visit
Austria becomes first country in Europe to mandate COVID-19 vaccination for all adults
Google launches fresh appeal to overturn $2.8 bln fine at top EU court
Russian, Iranian top diplomats confirm commitment to Vienna talks to restore JCPOA - MFA
Gas prices in Europe above $900 per 1,000 cubic meters
Tehran offers swap of Russian gas from Azerbaijan to southern Iran
Czech Development Agency eyes launching new projects in Georgia in 2022
Sudan military chief Burhan announces ministerial appointments: Sovereign council
Azerbaijani FM discusses issues of bilateral co-op with Austrian minister
Azerbaijani FM meets with OPEC Sec-Gen (PHOTO)
UN General Assembly adopts resolution condemning Holocaust denial
Cavushoglu and Israel's Lapid hold phone call
Iran, Russia reach agreements in oil and gas sector, says minister
Children over 5 years old allowed to be vaccinated against coronavirus in Uzbekistan
Ankara expects to host Putin-Zelensky meeting - Erdogan
Turkey, Qatar agree on ensuring security at Kabul airport
Turkish Parliament speaker pays tribute to memory of martyrs of Azerbaijan's January 20 tragedy
Georgia slightly decreases imports of petroleum gases from Azerbaijan
US will keep probing diplomats’ health incidents: Blinken
Georgia shares data on cement imports from Azerbaijan
Kazakhstan Railways opens tender to buy spare parts
Azerbaijan's metallurgical production increases
Cost of manufactured computers up in Azerbaijan
Central Bank of Turkey makes decision on key rate
President Ilham Aliyev receives Advisor to French President's Cabinet and EU Special Representative for South Caucasus (VIDEO)
January 20 tragedy laid foundation for Azerbaijanis' struggle to restore their statehood and independence
Azerbaijan shares data on number of vaccinated citizens
Price indexes of industrial, trade sectors at Uzbek stock exchange rise
Azerbaijan confirms 1,186 more COVID-19 cases, 582 recoveries
Turkish VP tweets about anniversary of Azerbaijan's January 20 tragedy
Kazakhstan talks persons not eligible for support on loan deferrals, write-offs
Uzbekistan’s Bukhara oil refinery discloses volume of its production in 2021
Turkmen enterprise releases its first tablets and smartphones
All news