Supplier Strain Hurts Airbus Sales

Airbus has been forced to cap production for A320 planes at 42 a month instead of moving to 44.

Airbus has been forced to cap production for A320 planes at 42 a month instead of moving to 44, Chief Operating Officer John Leahy said in London, where he issued a long-term market forecast today. The strain on the supply chain may limit how many of the updated A320neo aircraft can be made from 2015.

Airbus and Boeing rely on their single-aisle models for the bulk of sales, with Airbus predicting today that the segment will make up 19,500 planes by 2031, or 69% of the total. Both companies have upgraded their best-selling models with more fuel-efficient versions, as they seek to extend the planes’ lifespan and lock out competition.

“We’re getting stretch marks at the seams,” Leahy said in an interview, as Airbus struggles to even achieve 42 single- aisle planes a month by the end of this year. “Our supply chain doesn’t seem capable of getting to 44.”

With more than 1,400 orders for the A320neo, Leahy said he’d like to see a faster ramp-up of production to satisfy demand for the fastest-selling plane in aviation history. The sales chief said he could easily imagine Airbus delivering more than 50 A320neos once the plane hits full production.

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