Cutting A220 costs is an ‘ongoing exercise’ for Airbus

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Introduction
March 14, 2019, © Leeham News: Airbus’ effort to slash supply costs for A220 production is “an ongoing exercise at this point,” Joe Marcheschi, Airbus’ head of procurement in North America, told LNA in an interview last month.

The A220-300 for JetBlue will be assembled at the Airbus plant in Mobile (AL). Airbus rendering.

“There are no specific, let’s say, achievements yet,” he said. “We are working closely with our supply chain.” It takes time to squeeze cost out of the supply chain, he said. “We only took over July 1. That’s when we got full knowledge of the existing contracts.” In January, Philippe Balducchi, head of the Airbus-led venture overseeing production, told journalists that the aerospace giant aims to realize “significant double-digit” percentage cost reduction. He indicated that most of the savings likely would come from the supply chain, according to news reports. “Look, the airplane is absolutely fantastic—it just costs a lot of money,” Marcheschi said. “Now, we have to find a way to reduce the cost.”
Summary
  • Airbus is working to slash supply chain costs on A220 program, but no announcements yet.
  • The European plane maker wants to offer commercial MRO services in North America.

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