Airbus would maintain its production of A320 aircraft despite the crisis, according to sources.

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5 years ago

Airbus is set to reassert its airplane production rates, despite warnings that the coronavirus crisis will be deeper and longer than expected, industry sources told Reuters on Thursday.

After cutting production of its A320neo at the beginning of the crisis, the European aircraft manufacturer has submitted its targets to a new internal review, as a second wave of COVID-19 causes new government restrictions in Europe.

But although it has continued to cut its monthly production to 40 A320neos, down from 60 before the crisis, this week’s review determined that Airbus will maintain the production line for now.

“There are no signs of a slowdown; in fact, the opposite,” said a major industry source about the A320neo production.

The decision is good news for hundreds of suppliers at risk from volatile production rates. But it puts pressure on Airbus to maintain deliveries and find homes for some 170 aircraft that are already waiting for airlines to receive them.

In a letter to staff last week, Airbus CEO Guillaume Faury warned that the crisis was deepening.

The drop in demand, combined with billions of dollars in cash tied up in undelivered aircraft, has led to a debate about whether to reduce aircraft production rates per month.