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Airbus: Difficulty installing A321neo | Aerospace industry | sectors



European aircraft manufacturer Airbus has slightly canceled delivery plans due to problems with the construction of the A321neo mid-range jet. Instead of this year's 880 to 890 passenger aircraft, only about 860 machines will be introduced into the airlines, Toulouse CEO Guillaume Faury.

Airbus can only benefit from the crisis of its US rival, Boeing, in a limited way – because increased production cannot meet demand. Initially, the news didn't work out well on the stock market. However, since the beginning of the year, the paper has earned almost 50 percent of its value.

In the summer, the aviation and defense company earned more than expected by analysts. Dominik Asam, Chief Financial Officer, sees 2019's profit target, although limited delivery plans are safe. Adjusted for special effects, the operating result (adjusted EBITDA), which was € 5.8 billion in the previous year, should increase by around 15 percent this year. Airbus increased its profits in the third quarter, although sales of 15.3 billion euros were about one percent lower than in the previous year. Adjusted EBITDA increased by 2 percent to 1.6 billion euros, plus 3 percent to 989 million euros.

However, the planned increase in production of the medium-range jets of the A320neo model family brings manufacturers more challenges than expected. Faury said at a telephone conference that the installation of the aircraft's new cabin equipment took much longer than the conventional version. The range of cabs, called Airbus Cabin Flex (ACF), creates space for more passengers on the longer A321neo aircraft model.

By 2021, Airbus plans to complete 63 A320 family planes per month; this is enhanced by the new edition of the A320neo, which has been modernized and consumes less fuel. Since the production of the A320neo family has been booked for years, Airbus can barely fire its heavily beaten rival Boeing soon. The global flight ban for the Boeing 737 Max – the rival model of the A320neo – has put the US company into a deep crisis. After two accidents in which 346 people were killed, the jets of the show will no longer be launched worldwide since March. Deliveries were also stopped.

The Airbus leadership is concerned about the criminal tariffs imposed by the US on European Airbus jets. Talk to Faury, Airbus customers in the US, about how to limit the impact of tariffs. For example, the Airbus A320neo series machines and soon produce the smaller A220 model in an area in the US state of Alabama. There is no customs duty on the machines installed there and on parts delivered from the US to Europe.

The US announced tariffs in early October in retaliation for illegal EU subsidies to Airbus. The EU Commission threatened the US with retaliation because it was in a process similar to the subsidies of the EU Boeing right. The EU may therefore impose similar criminal tariffs. However, the WTO decision will not come until 2020. (Dpa / apa / red)


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