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Airbus executive says output goal based on jet deals

Airbus executive says output goal based on jet deals
Airbus executive says output goal based on jet deals   -   Copyright  Thomson Reuters 2021
By Reuters

By Carlos Vargas

BOGOTA – A senior Airbus official on Monday defended the European planemaker’s output goals after it clashed with leasing companies worried about overproduction of jetliners.

Airbus hopes to almost double production of its best-selling A320 family as air travel gathers pace following the coronavirus crisis. Critics have accused it of ignoring the impact on jet prices and service revenues.

“The key to all this is that we have these firm contracts with our clients – we cannot say that we are not going to respect those contracts because we think they are too many for the business,” said Airbus Latin America president Arturo Barreira, on the sidelines of the ALTA airline conference in Bogota.

“We have those commitments with our clients, so the demand is there and we are seeing that the interests of many airlines to improve the fleet are being reactivated,” he told Reuters.

Industry sources said earlier on Monday Airbus had rebuffed calls for output restraint from leasing companies, which fear the effect of too much production on the value of existing assets.

The dispute deepens an industry split over post-COVID demand after Airbus also received flak from engine makers and other suppliers over the pace of its planned output increases.