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.
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.