Challenges working against A330ceo production goal

Subscription Required Introduction March 23, 2015, c. Leeham Co. Airbus faces a production gap for the A330ceo and has twice announced reductions in the rate: first, from 10/mo to 9/mo in 4Q2015 and then again to 6/mo in 1Q2016. Despite confidence expressed by John Leahy, chief operating officer-customers, that rate six will be maintained going into production of the successor A330neo, we think the production gap is great enough that another rate cut might be necessary. Summary
  • Filling the production gap depends in part on converting options and letters of intent into firm orders and obtaining a significant number of firm orders between now and when the A330neo enters service in 2018.
  • We see a need for more than 100 orders between now and 2018.
  • The A330 Regional has yet to land a single order, but an Airbus official says don't count it out.

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