AIRBUS FACES 20% GROWTH IN DEMAND FOR AIRCRAFT ABOVE ITS PRODUCTION LEVEL

Vanderlei J. Pollack - Nov 28, 2023
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During an informative meeting, Airbus highlighted the growing demand for aircraft, which is currently 20% higher than its production capacity, even if it had enough components. This problem has been identified as the company's "priority," and it plans to increase its workforce to over 13,000 positions per year, renew its fleet, and invest in sustainable technologies in the upcoming years.

Airbus considers this their "main challenge," as they cannot meet the high demand for aircraft. Although the situation will improve significantly by 2023, the company will still face difficulties.

The manufacturer aims to increase its production of the A320 Family aircraft progressively. The goal is to manufacture 75 aircraft per month by the middle of this decade, rising from six to ten A350 aircraft and three to four A330 Family aircraft.

The demand for air travel has been increasing due to several reasons:

  • There is a growing number of people who want to fly
  • Middle-class populations in new countries are using planes as a means of transport
  • Destinations like India have seen an increase in demand for air travel

Renewing the fleet is also becoming a crucial issue. Around 25% of the fleet must be renewed in the next ten years to improve sustainability.

The company is also focusing on its suppliers as it faces engine difficulties. They are experiencing problems with both supply and estimated delivery times. Airbus currently has 3,000 direct suppliers and more than 15,000 indirect suppliers.

Despite the difficulties, the company is optimistic about its forecast for the last quarter and the end of the year. They believe that their planned budget will not be impacted.

The manufacturer favors economic incentives to promote the production of sustainable fuels like SAF and advance regulatory measures to encourage its use. However, they also believe in maintaining balance and avoiding excess, as they do not want to put themselves in harm's way while striving for a cleaner environment.

Globally, aircraft manufacturers plan to add 13,000 new jobs.

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