How Airbus And Boeing's Single-Aisle Jet Party Could End
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
Author: Richard L. Aboulafia
Will Airbus and Boeing raise their single-aisle jetliner production rates to 70 per month? The industry has heard growing talk of these increases, which could come just a few years after the end of the decade. The current state of demand justifies these rates. But the current state of demand is based on an almost perfect confluence of market conditions. Here's why that might not last.
Right now, the industry is still focused on getting to its current production objectives. This has proven difficult, with numerous stumbles related to the new generation engines powering the latest models. Airbus plans to get to 60 A320neo series jets per month in mid 2019, while Boeing is aiming for 57 737MAXs per month around the same time. The scramble to build planes is based on unprecedented demand. Boeing currently has 4,615 outstanding orders for its 737 family, while Airbus holds a 6,126 jet backlog for its A320 series.
Still, suppliers have reservations about the sustainability of the new rumored production rates, which is understandable given the heavy investments the industry would need to get there. This is particularly true for the engine primes, CFM International (General Electric/Safran) and United Technologies' Pratt & Whitney.
Historically, the jetliner market has seen a...