Tue, Nov 21, 2006
Looks To Smaller Planes To Improve Its Fortunes
For all the problems Airbus currently faces with its largest
planes, such as the upcoming A350 and flagship A380... the
manufacturer is enjoying strong sales for its immensely popular
A320-family of smaller, single-aisle airliners.
To meet the demand, Airbus announced Monday it is ramping up
production of its narrowbody airliners. Currently, the company
delivers about 30 A320s per month... a number Airbus wants to see
increased to 36 by December 2008.
Management at the European planemaker approved the ramp-up last
week, according to Airbus spokesman Justin Dubon. "The reason is
that the backlog for A320 aircraft is so huge," he told The
Associated Press. Airbus currently has approximately 1,800 A320
orders in its backlog.
Speeding up production should also free up delivery slots --
which are currently out until 2010.
There is some question, however, whether its suppliers will be
able to keep up with the busier workload... a trap Boeing fell into
in the 90s, when it attempted to speed production of its 737. But
that's a risk Airbus is willing to take, especially for its most
popular model line by far.
Delivering more A320s, sooner, will also pump needed cash into
Airbus coffers -- money the planemaker can then use to support its
larger aircraft programs.
Airliner manufacturers take deposits when planes are ordered...
but they don't collect the full bill until those planes are in the
hands of customers.
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