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Airbus Lower Sights as Aircraft Output Heads for Deep Trough
01 Jan 2002
The maiden voyage of the first A318, the latest member of the Airbus 320 family, took place just two days before the world's second largest aircraft manufacturer announced its commercial aircraft order tally for 2001 was 30% down on 2000. However, for the second time in three years, Airbus beat rival Boeing, which suffered a 45% drop in new aircraft orders last year, reflecting the deep crisis that has engulfed many of the worlds leading airlines.
The A318 was launched in April 1999 to serve high-frequency, lowdensity routes in the 100-seater market. It is part of the A320 family, which has become the fastest-selling single-aisle aircraft family of all time.
114 A318s are currently on order from nine customers. Its principal competitor, Boeing's 717 short-range jet was nearly scrapped in 2001 although it is expected to survive in production for several more years.
The overall market has contracted sharply as airlines have restricted new orders in response to the global economic slowdown and the steep fall in demand for air travel since September 11. Hundreds of aircraft were removed from service and were laid up in the western deserts of the US. 400,000 aviation jobs were lost worldwide as a result of the terrorist attacks according to a new report organised by the International Labour Organisation.
Both Boeing and Airbus have come under heavy pressure from airlines to defer previously agreed firm orders. The aviation industry is expected to report record losses for 2001 and with further losses forecast this year. Airbus took 375 orders for 2001, compared with Boeing's 335 gross total, which taking into account conversions and cancellations amounted to a net order figure of 272. Airbus' 101 cancellations for last year took its net order figure to 274. Both companies expect the low point to be reached in 2003.
Airbus says it is committed to shaving 600 million off its cost this year; some industry pundits consider that this may not be enough. There will be 500 job cuts in the UK and short-time working in France, Germany and Spain with plants closing for between four and 20 days.
Airbus also says that it can show a profit if it delivers 250 planes a year.
Last year Airbus deliveries reached a record 325, up from 311 in 2000.
Graham Wason, Vice President of the World Travel and Tourism Council considers that the aftermath of September 11 means that world air travel will slide 10 percent this year.
He said: "A lot of destinations will lose more significantly than others, but some destinations are even benefiting from September 11."
Wason's win list includes Portugal and South Africa, whilst the potential losers, because of their closeness to ongoing world conflicts include Turkey and Eygpt.
For more on Aerospace see pages 8 to 12.
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