Shareholders give formal go-ahead for twinjet, but production hurdles lie ahead

Airbus’s top salesman warns that orders for the newly launched A350 could be constrained by the company’s ability to ramp up production of the twinjet to meet demand.

Airbus improvements

The €4.35 billion ($5.2 billion) programme finally received launch approval from Airbus shareholders EADS and BAE Systems. However, they have decided to delay the receipt of any government funding until 2007 as part of efforts to avoid a trade dispute .

Speaking to Flight International after the launch last week, chief operating officer John Leahy said the “biggest problem” he faces is “our ability to ramp up A350 production. If I could get more, I could sell more.”

Airbus has secured 140 order commitments since the commercial launch of the twinjet in December last year. Leahy says that sales will reach “200 to 210 by the end of the year”. He points out that, with Boeing likely to have around 265 787 orders by then, A350 orders will have virtually caught up despite the 787’s significant head start. “My problem is getting them out of the door,” says Leahy. “We need to do what Boeing is doing with its production ramp-up of the 787.”

The A350 is a major development of the A330 incorporating greater use of advanced materials, as well as aerodynamic improvements (see graphic). It will be built using the A330/A340 production system, which is moving to its highest-ever output level of a combined eight units a month. Leahy says that Airbus will be “working on the production issue” over the next six to 12 months.

Leahy dispels suggestions that the A350’s arrival spells the early demise for the A330 long-range twinjet. “It’s going to be around for another 10 years yet,” he says.

Despite a four-month slip in the planned full go-ahead, Airbus says that the A350 development plan remains on track, with deliveries due to start in mid-2010.

MAX KINGSLEY-JONES/LONDON

Source: Flight International