Airbus Chief Says A350 Delivery Goal A Challenge

Airbus faces a challenge to meet delivery targets for the A350 this year due to problems with suppliers, CEO Fabrice Bregier said in an interview.

Airbus still has to deliver at least 41 A350s to reach its target of more than 50 for the whole year, after a slow start blamed partly on shortages of seats and toilets.

"The target remains a challenge because some of our industrial partners are experiencing difficulties," Fabrice Bregier told France's La Tribune daily.

Asked whether this meant problems and delays with cabin equipment from Zodiac Aerospace remained unresolved, Bregier said: "The situation is improving, but not enough to allow us to meet all our commitments. Improvement plans have been launched, but too late".

Zodiac said on Tuesday the operational performance of its cabin branch continued to be affected by problems with lavatories for the Airbus A350, but that delays in seat production were coming under control.

Bregier expressed greater optimism about production of the A320neo, saying problems with Pratt & Whitney engines were being fixed and Airbus aimed to catch up with delivery plans in the second half of the year.

"It is achievable, even if it is a stretch," he said.

Bregier said Airbus did not yet have sufficient promises of orders to commit to a possible larger version of the A350 to compete with Boeing's 406-seat 777-9, and that discussions of an engine revamp of the A380 were on hold for now.

DUOPOLY THREAT

In a wide-ranging interview, Bregier said Airbus and Boeing should expect challenges to their duopoly in the next 15 years as China, Russia and others ramp up competition.

Asked whether China could penetrate the market, he said: "Why shouldn't it? It's doing so in all other high-technology areas".

Bregier visited China this week as part of a delegation led by German Chancellor Angela Merkel, though Airbus failed to secure a major new order for its aircraft as some had expected.

Bregier left open the possibility of future alliances between plane makers, without giving names.

"For its own development, Airbus has no need for a strategic alliance. On the other hand, it would be taking liberties with the future to say that there will never be one," he said.

On present-day rivalries, Bregier cast doubt on studies carried out by Boeing for an aircraft between the traditional narrow-body and wide-body categories.

Airbus has outsold Boeing in the largest part of the narrow-body segment with its 185-seat A321neo, though Boeing says its proposed mid-market plane would be bigger than this.

"Saying Boeing is interested in this (middle) market is one thing. Finding the right solution to compete with us is another. Imagining a new generation of aircraft being produced in volume before 2030 is very improbable," Bregier said.

Industry sources say Boeing is pondering a strategic move to build two mid-market jets with 220 and 260 seats, to be available from around 2024-25. It is also considering a quicker tactical move to expand its narrow-body family with a larger new variant called 737 MAX 10 to counter the A321neo.