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European airframer Airbus remains bullish on growth despite the issues it experienced in 2017, struggling to deliver A320neos due to engine problems and failing to notch another big follow-on A380 order from Emirates, which the manufacturer now says it needs to maintain production of its flagship airplane.
Airbus Commercial Aircraft outgoing president Fabrice Bregier and outgoing COO for customers John Leahy held a media webinar on January 15 designed to give an overview of the company’s order and delivery performance in 2017.
Bregier said Airbus deliveries reached 718 last year, while Leahy reported a higher-than-expected net order tally of 1,109, something he attributed to the world’s economy performing better than anticipated.
However, Leahy’s comment that the A380 line could shut down if the order from Emirates does not close proved the real headline-grabber, and possibly a subtle way to make clear to Emirates where Airbus stands.
He said Airbus is “talking to a few key airlines” with the aim being to return one day to producing 25 A380s a year, while characterizing Emirates as “probably the only one in the market that has the capacity to take six to eight aircraft [a year] over several years.”
With 15 aircraft delivered last year and 12 due to be delivered in 2018, eight in 2019, and a move to six a year starting in 2020, Airbus admits the A380 looks vulnerable. Bregier nevertheless made it clear that the company could deliver on current commitments with a low delivery rate, with Leahy adding it is worth waiting for an order upturn. “This is an airplane whose time is coming,” he said. Airbus has delivered 222 A380s out of 317 ordered, leaving 95 in the backlog.
Of the 718 aircraft Airbus delivered overall last year, 127 aircraft went in December alone, prompting Bregier to joke, “If we did that every month we’ve be able to deliver 1,500 a year.” However, much of the December rush involved clearing the 60 engine-less A320neos parked at Toulouse and Hamburg; the number has dropped to 30, he reported, as Airbus now delivers as standard the two fixes of technical problems suffered by Pratt & Whitney PW1100G engines.
Airbus deliveries totaled 30 more than the previous year and marked the 15th consecutive year of increased production.
Of the A320 family, Airbus delivered 558 during the year, including 181 neos. The total amounted to 13 narrowbodies more than it delivered in 2016. “Producing GTF engines is a hell of a challenge,” said Bregier, while also noting that CFM Leap engines also suffered some problems. Of the neo total, Airbus delivered 73 Pratt-powered machines and 108 CFM-powered aircraft. “So, overall, it was not a bright performance but we were close to targets,” said Bregier. Airbus expects A320 family production to reach 60 aircraft monthly by mid-2019.
Bregier said Airbus had delivered 67 A330s, and that the new A330neo had logged 230 hours in flight test, adding that model remains on target for first delivery to launch customer TAP Portugal in mid-2018.
He said Airbus had studied a further A350XWB stretch, but called the -1000 the “vector of growth” he expected airlines to take at a rate they used to take 777-300ERs. He added that A350-1000s would probably start to replace examples of the -300ER in 2020. A350 production will increase to 10 per month by the end of 2018, said Bregier.
“We have got about three widebody deals which I think I can sign in the next 30 days, max 60 days,” added Leahy, as the company prepares for next month’s Singapore Airshow.
Ever one to make comparisons with Boeing, Leahy said Airbus’s order market share in 2017 totaled 55 percent in terms of deliveries (51 percent in terms of value, at $137.7 billion). In the single-aisle segment, its market share rose to 59 percent, Leahy claimed. “In nine out of the last 10 years we have outsold our competitor," he said. Deliveries are at a 48 percent market share [but] I bet by 2020 we will deliver more aircraft than Boeing.” He added that Airbus list prices had increased by a “fair” 2 percent over 2017 prices.
Airbus plans to disclose its full-year results on February 15, after the Singapore Airshow.
European airframer Airbus remains bullish on growth despite the issues it experienced in 2017, struggling to deliver A320neos due to engine problems and failing to notch another big follow-on A380 order from Emirates, which the manufacturer now says it needs to maintain production of its flagship airplane.
Airbus Commercial Aircraft outgoing president Fabrice Bregier and outgoing COO for customers John Leahy held a media webinar on January 15 to give an overview of the company’s order and delivery performance in 2017.
Bregier said Airbus deliveries reached 718 last year, while Leahy reported a higher-than-expected net order tally of 1,109, something he attributed to the world’s economy performing better than anticipated.
However, Leahy’s comment that the A380 line could shut down if the order from Emirates does not close proved the real headline-grabber, and possibly a subtle way to make clear to Emirates where Airbus stands.
He said Airbus is “talking to a few key airlines” with the aim being to return one day to producing 25 A380s a year, while characterizing Emirates as “probably the only one in the market that has the capacity to take six to eight aircraft [a year] over several years.”
With 15 aircraft delivered last year and 12 due to be delivered in 2018, eight in 2019, and a move to six a year starting in 2020, Airbus admits the A380 looks vulnerable. Bregier nevertheless made it clear that the company could deliver on current commitments with a low delivery rate, with Leahy adding it is worth waiting for an order upturn. “This is an airplane whose time is coming,” he said. Airbus has delivered 222 A380s of 317 ordered, leaving 95 in the backlog.
Of the 718 aircraft Airbus delivered overall last year, 127 aircraft went in December alone, prompting Bregier to joke, “If we did that every month we’ve be able to deliver 1,500 a year.” However, much of the December rush involved clearing the 60 engine-less A320neos parked at Toulouse and Hamburg; as of last month the number had dropped to 30, he reported, as Airbus now delivers as standard the two fixes of technical problems suffered by Pratt & Whitney PW1100G engines.
Airbus deliveries totaled 30 more than the previous year and marked the 15th consecutive year of increased production.
Of the A320 family, Airbus delivered 558 during the year, including 181 neos. The total amounted to 13 narrowbodies more than it delivered in 2016. “Producing GTF engines is a hell of a challenge,” said Bregier, while also noting that CFM Leap engines also suffered some problems. Of the neo total, Airbus delivered 73 Pratt-powered machines and 108 CFM-powered aircraft. “So, overall, it was not a bright performance but we were close to targets,” said Bregier. Airbus expects A320 family production to reach 60 aircraft monthly by mid-2019.
Bregier said Airbus had delivered 67 A330s, and that the new A330neo had logged 230 hours in flight test, adding that model remains on target for first delivery to launch customer TAP Portugal in mid-2018.
He said Airbus had studied a further A350XWB stretch, but called the -1000 the “vector of growth” he expected airlines to take at a rate they used to take 777-300ERs. He added that A350-1000s would probably start to replace examples of the -300ER in 2020. A350 production will increase to 10 per month by the end of 2018, said Bregier.
“We have got about three widebody deals which I think I can sign in the next 30 days, max 60 days,” added Leahy, as the company prepared for this month’s Singapore Airshow.
Ever one to make comparisons with Boeing, Leahy said Airbus’s order market share in 2017 totaled 55 percent in terms of deliveries (51 percent in terms of value, at $137.7 billion). In the single-aisle segment, its market share rose to 59 percent, Leahy claimed. “In nine out of the last 10 years we have outsold our competitor," he said. Deliveries are at a 48 percent market share [but] I bet by 2020 we will deliver more aircraft than Boeing.” He added that Airbus list prices had increased by a “fair” 2 percent over 2017 prices.
Airbus plans to disclose its full-year results on February 15