Record-breaking Airbus sales : New contracts, including from the military sector
In a jolly twist, Airbus scaled new heights in DAX on a frisky Friday. Speculation abounds about the reasons - good vibes from China and Taiwan, new military contracts, and even the burgeoning space industry could be contenders. The share dance continues.
Airbus China's boss, George Xu, spilled the tea on the bumpy aviation supply chains. The snag? Economy can't keep up with the berserk industrialization speed, leading to flight delays and schedule jeopardy. Oof.
Xu discussed these troubles in an interview with the China Daily. To solve the crisis, Airbus China will invite more competitive local suppliers to become part of China's aircraft construction bonanza.
Listen up, sky's the limit here: Industrialization can't breathe when supply chains go haywire. And let's not forget about the U.S.-China trade tiff, adding extra complexity to the puzzle. Engines are the crutch for airplanes, and obtaining them has become a nagging problem due to these disputes.
What now? Airbus is talking things over with engine supplier CFM International, hoping to nudge engine production upwards, keeping that toxic supply chain dragon at bay. Christian Scherer, CEO of Airbus, has a positive chin-up attitude, expressing hope that engine supply will improve in 2025, allowing them to fit engines into the engine-less aircraft bodies. Around 40 of these "gliders" have been hanging around Toulouse as of early 2025. Yikes.
To cope with the current situation, Airbus has had to reduce A320neo production to 40 planes per month, a dip of 25% from the hoped-for 2027 target of 75 planes monthly. Shrewd, innit? Even with these cuts, Airbus continues to pander to China's demands, with rumors suggesting Beijing may order up to 500 Airbus planes. That's a significant chunk of change.
So, Airbus has an ambitious target of delivering 820 aircraft in 2025, a rise from the 766 planes delivered in 2024. Ambitious, eh? But internal pressure points remain, with some targets, like the large increase in A220 production, reportedly unrealistic without some serious supply chain improvements.
In a nutshell, Airbus is engaging suppliers, adjusting production rates, and seizing potential Chinese orders to address supply chain hurdles and meet their delivery and ramp-up targets. They're hoping to clear these obstacles to maintain their upward trajectory and keep those dollar bills flying high.
Finance and industry are intertwined as Airbus seeks solutions to its supply chain issues, particularly in obtaining engines, a crucial component for their aircraft. The aerospace sector, with its complexities and emerging markets like China, adds another layer to these financial considerations.
