Sept. 20, 2016: Airbus is planning cost-cutting measures to offset program write-offs and delivery delays, according to The Financial Times.
One of these delays involves the well-publicized problems with the Pratt & Whitney Geared Turbo Fan engine on the A320neo.
The CEO of United Technologies, parent of PW, last week said engine deliveries could fall 50-100 engines short of the 200 originally projected for the year, with a likely shortfall of about 50.
The A320neo “gliders” (as an Airbus executive put it) are well known. Bombardier also said it will deliver about half the number of CSeries this year because of GTF issues.
Sam Pearlstein, the aerospace analyst at Wells Fargo, had this synopsis:
Airbus continues to write off costs of its A400M program. It’s now facing new losses on the A380. Lack of demand prompted two announcements for production rate reductions. The first is from 24/yr to 20/yr and the second to 12/yr in 2018. Airbus said it cannot make money on the airplane at the latter rate.
Airbus also is facing customer penalties for A320neo and A350 delivery delays. Airbus itself isn’t at fault; the delays are caused by PW and interior supplier Zodiac. But it’s their name on the side of the airplane and customers want compensation.
Boeing also is pursuing additional cost-cutting, according to The Seattle Times. Overtime for salaried workers is being trimmed.