Demand supports rate 70/mo for A320, 737

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Introduction
May 3, 2018, © Leeham Co.: With the supply chain confirming last Thursday that Airbus and Boeing are exploring single-aisle production rates of 70/mo, Airbus confirmed it was doing so during its Friday earnings call. Boeing continues to be ambiguous, saying only there is “upward pressure” on its 737 production rates. The supply chain, notably the engine OEMs, already has heartburn over the current rate of 60/mo and 52/mo for the A320 and 737 families respectively. Summary
  • Engine makers CFM and Pratt & Whitney continue to have technical and production issues.
  • Airbus and Boeing each have “gliders,” though Boeing’s is a handful vs the dozens at Airbus.
  • CFM’s partner, Safran, cautions against rate 70.

Production rates will be among the topics at the Southeast Aerospace & Defence Conference next month in Mobile (AL). Click here for more information.

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