The sourcing delay comes midst United Technology Corp reducing its delivery target of 150 from 200.
John Leahy, the Airbus Group’s Chief Operating Officer has stated that the company is confident in mitigating issues related to production delays of its next gen single-aisle planes, the A320neo.
“It is disappointing the situation we find ourselves in. But it’s a good engine for everything we can see. They have some production difficulties that they’re working their way through,” said Leahy to reporters in New York after a gathering of aviation executives and analysts known as the Wings Club.
Earlier this month, United Technologies Corp had stated that it would be in a position to deliver only 150 of its Pratt & Whitney as opposed to a stated target of 200 amidst pressures of cash flow.
In a separate incident, Leahy also dismissed lingering doubts over demand for the double-decker A380, the world’s biggest passenger plane, after Airbus lowered its production targets in July.
“Every 15 years, the industry is doubling in size. So here you have London Heathrow, totally congested. JFK, congested. Los Angeles, congested. Hong Kong, congested. How are we going to double the traffic flows in the next 15 years if we don’t use larger aircraft like the A380?” asked Leahy said.
Despite the portrayal of long term optimism, the lack of orders for its new A380 is a spot of concern for the airplane manufacturer.
Furthermore, in 2018, Airbus plans on cutting down the A380’s delivery target to 12 a year. In 2015, it was 27 a year. The move is designed to prevent a glut in unsold planes.
In another sign of worry for Airbus, Singapore Airlines Ltd said informed this month that it will not extend a lease on one of its aircraft.
Categories: Entrepreneurship, HR & Organization, Strategy
manageria.biz 
Leave a comment