Airline crisis forces Airbus to consider A320 output cuts

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PARIS (Reuters) – Airbus is studying a sharp cut in output of its top-selling A320 plane series amid an industry-wide slowdown triggered by the coronavirus crisis, sources familiar with the matter said.

Europe’s leading planemaker is examining scenarios including cutting its monthly output of 60 A320-family jets by as much as half for around three to six months as airlines scramble to save cash, two of the sources told Reuters.

Airbus  has asked A320 parts suppliers to slow their deliveries to its factories by 40% to a rate compatible with production of 36 jets a month in the near term, one source said.

The coronavirus crisis has blindsided airlines and planemakers, prompting bailouts and drastic revisions.

Airbus additionally faces shortages in its own supply chain as it struggles to bring production back up to previous levels after pausing activity in several factories.

Airbus, which last month suspended its near-term 2020 delivery guidance, entered the coronavirus crisis with plans to increase A320-family production to 63 a month in 2021 and to add a further one to two planes per month in both 2022 and 2023.

Reuters
Photo Rob Vogelaar