Airbus Commercial Boosts Revenue, Plans A330 Rate Hike
Targets ‘Rate 7’ for legacy widebody in 2017
At peak rates delivering ten A330s a month, Airbus plans to raise the current “Rate 6” to seven a month in 2017. (Photo: Airbus)

Airbus’s commercial aircraft division registered an 8 percent rise in revenues last year on higher deliveries of 635 aircraft, including 14 A350 XWBs “in the first year of industrialization,” and the strengthening U.S. dollar, according to Airbus Group chief executive Tom Enders as he reported 2015 annual results in London on Wednesday. This year, the European manufacturer expects to deliver more than 650 aircraft, and to see its backlog increase. “The record order book supports our ramp-up plans and we are driving operational efficiency,” said Enders.


Announcing a 2017 increase in A330 production to seven aircraft a month, the official said the plan confirmed a previous Airbus decision to retain the twin-aisle twinjet in its portfolio. He hopes it will see the company “begin a rebound in the program” and even increase beyond “Rate 7,” having previously varied between six and ten.


Separately, Enders acknowledged that problems with the Pratt & Whitney PW1100G-JM geared-turbofan (GTF) led Airbus to invoke contingency plans established early in the A320neo re-engining program that enabled it to swap 2016 A320neo and ceo production slots without financial penalty. He said he expects “much improved” powerplant deliveries from mid-year, adding that once Pratt resolves “issues” with the GTF “it will be a winner for customers.” Enders also noted that the decision to offer alternative CFM International Leap-1A units provided greater production flexibility and accommodation for engine delays.


Airbus continues preparations for A320neo ramp-up, as the company concentrates on maturity and service readiness for early operations in line with customer expectations, said Enders, who also noted that Airbus will “back-load” deliveries to account for higher production in the year’s second half. Neos will account for less than 20 percent of the year’s A320 family output.


Although the A380 very-large aircraft program broke even last year for the first time, Enders confirmed that delivery of 27 units totalled three below target and that the company expects to deliver a similar level this year. Airbus must work to keep the A380 profitable at the lower rate and “pay attention” to recurring and non-recurring costs, according to the chief executive, who includes Iran among possible new customers. Group chief financial officer Harald Wilhelm said he believes Airbus can maintain A380 profitability in 2016 and 2017, but the company “obviously needs new orders.” Enders confirmed that A380neo re-engining studies continue. However, “there is nothing new to say,” he maintained. “We must concentrate on lowering A380 costs.”


Finally, the A350 program remains a manufacturing challenge, conceded Enders, as Airbus aims to deliver more than 50 airplanes this year. “I have no reason to doubt [that] can be achieved, but it is bound to be tough," he said. Wilhelm added that he expects to see the program move toward break-even at the end of the decade.


Meanwhile, Airbus continues “a strong focus on supply-chain performance, controlling and reducing [assemblies arriving with] outstanding work, and managing recurring costs,” said Enders. “Suppliers are working hard [and] the problem is hardly ever [just] one,” he noted. “I am optimistic. With cabin suppliers, it can be trivial; you can't deliver an aircraft with no toilet door.”