Following the news that Airbus is scrapping plans to produce A320neo nacelles and engines in house;
"The news that Airbus was giving up on its plans to take over the production of A320neo nacelles and engines from
"This move is linked to severe COVID-19 disruptions currently affecting commercial aerospace. To face falling demand for new jetliners, Airbus already reduced production rates of its main commercial platforms by 40% overall for two year, including the A320neo whose sales have stalled at 47 net orders in 2020 so far according to Airbus' figures.
"Much uncertainty still surround the potential recovery of commercial aviation, but it is now clear that Airbus' pre-crisis output at around 60 A320neo per month is far too high to be sustainable in the medium term. Taking over the production of nacelles and engines would therefore expose Airbus to a far more rigid supply chain as actual demand will remain uncertain for the next few years, offsetting any potential saving on maintenance costs."
ENDS
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