Berlin, Germany - Airbus is not planning to increase its current aircraft production rate for the next two years due to the additional tariffs imposed by the United States and a possible no-deal Brexit.
Airbus will maintain its current production rates for the majority of its planes, both in 2020 and 2021 as the complexity of production increases with new models said Airbus CEO Guillaume Faury on Sept. 17 during an interview with the German newspaper Die Welt.
Besides the no-deal Brexit, the uncertainty over the trade dispute between the US and the EU doesn't provide a suitable environment for increasing the production, the Chief Executive also noted.
Only the A320 production will be increased to 63 from 60 aircraft per month in 2021 to comply with the existing delivery schedule.
The US will soon impose new tariffs on goods from Europe, according to EU Trade Commissioner Cecilia Malmström. An EU proposal for a settlement of the dispute over subsidies for Airbus and Boeing has not yet been answered.
Tariffs on the planes of Airbus would have devastating consequences, says Faury. Supply chains are completely international. Up to 40 percent of all Airbus parts are being supplied by US companies. If the U.S. government imposes tariffs on Airbus airplanes, dozens of suppliers in the US will be negatively affected, reminded the head of Airbus Commercial Aircraft.
Airbus must also prepare for a possible no-deal Brexit. In this scenario, the group will look for a new place in Europe for its wing production if the UK is not the right place for doing business, Faury said.
Airbus targets 880 to 890 deliveries by the end of this year. The manufacturer has already delivered 389 aircraft as of August 31st. Last year the Group delivered 800 commercial aircraft to its customers.
If the company reaches its delivery target, it will finish the year with more aircraft delivery than Boeing for the first time.
Boeing is in a serious crisis due to its plagued 737 MAX jets after two fatal crashes.
Faury also said the European Group has no plans for a newer model of its best-selling A320neo jets until 2035.