By Robert Wall
TOULOUSE--Airbus Group NV is thinking of further increasing
output of the popular A320 single-aisle jetliner by as much as 26%
to more than 60 a month and could reach new record production
levels for the plane type before the end of the decade.
"I, for one, am looking for a rate over 60" single-aisle
aircraft a month, said John Leahy, Airbus chief operating officer
for customers. Building 63 narrowbody jets a month "is clearly
justified" by market conditions, Mr. Leahy said.
Airbus and rival Boeing Co., the world's largest plane makers,
have enjoyed a period of record order intake for new planes,
principally their single-aisle jets that are the backbone of global
flying. The growth of low-cost carriers has helped fuel demand for
narrowbody planes that propelled Airbus's backlog of
yet-to-be-delivered A320 type jets to 5,144 planes at the end of
last month.
Airbus already announced plans to increase output of its A320
jetliner to 50 planes a month in early 2017 from 42 currently. A
decision to build more could come before the end of the year, he
said. The ability of suppliers to support higher output levels is
being examined, he added.
Airbus could start building around 60 single-aisle planes a
month from 2018, said Tom Williams, chief operating officer for the
plane maker. Airbus, at the time, will be building mainly A320neo
jets which feature new engines. "We've got to make sure the engine
guys can also match that rate," Mr. Williams said.
Producing that many more planes could boost Airbus annual sales
by $70 billion at list price, though airlines typically get big
discounts.
Meeting the target will not be easy, with supplier stretched,
Mr. Williams said. Airbus has 7,500 direct suppliers, though often
trouble spots are further down the supply chain. Pressure on
suppliers is amplified because Boeing is also increasing output.
Mr. Williams said Airbus shares around 60% of suppliers with its
Chicago-based rival.
Boeing Co. is also raising output of its rival 737 jetliner to
52 aircraft a month from 2018. It currently builds 42 such planes a
month. Mr. Leahy played down concerns that the big order backlogs
that Airbus and Boeing have built up can't be sustained. The
appetite for air travel among the emerging middle class in
developing economies will help sustain demand, he said.
Airbus from next year will start building A320 jetliners in
Mobile, Alabama, adding a fourth assembly site to those in
Toulouse, Hamburg, Germany, and Tianjin, China. Mr. Leahy also said
the plane maker is poised to win "significant" orders for its A330
long-range jets at the Paris Air Show, scheduled to take place next
month.
Airbus has announced plans to reduce output of the plane from 10
aircraft a month to six a month from next year on weak demand. A
further cut in output may be averted if Airbus secures the orders
it is currently pursuing, he said.
Write to Robert Wall at robert.wall@wsj.com