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Airbus adds new production line for A320 as Boeing struggles on with grounded 737 Max
Airbus is adding an extra production line for its bestselling A320 family of airliners at its Toulouse base.
The new final assembly line will build the A321, a “stretched” version of the narrowbody airliner and a direct competitor to Boeing’s troubled 737 Max jets, which have been grounded since March after two fatal crashes.
Currently Airbus builds 60 A320s a month at production sites in Toulouse, Hamburg, Mobile in the US and Tianjin in China.
The wings for all the company’s airliners are produced at its giant UK factory in Broughton, north Wales.
Output of A320s is being increased to 63 per month in 2021 and it is thought the company could be looking to take this higher as it capitalises on Boeing’s issues with the 737 Max.
Boeing’s jets remained grounded while a fix is found for a problem linked to two crashes which claimed 346 lives.
Many believe the 737 Max will not be certified to fly until at least the summer, and there are concerns that airlines could cancel orders for the jet because passengers are worried about its record.
However, Airbus played this down as it announced the extra production line at Toulouse, which should be operational in 2022.
"The new facilities will provide more flexibility for A321 production, while keeping the overall single aisle industrial capacity in Toulouse flat," the company said.
It is understood that part of the reason for the new Toulouse facility is to create extra capacity while Airbus tries to solve construction problems with its “cabin flex” version of the A320, which is built at the Hamburg site.
The “flex” allows the fuselage to be modified and enlarged from the standard aircraft, allowing it to carry more passengers and extend the range. However, the modifications have proved complex and resulted in delays.
Robert Stallard, analyst at Vertical Research Partners, said: “Extra capacity at Toulouse will allow Airbus to help meet demand while it works through problems with the capacity cabin flex.
“However, inevitably a new assembly line will mean Airbus can up the A320 production rate once the problems are sorted out. Airbus is doing that in a conservative way as the biggest factor in holding back higher production rates is whether the supply chain can stand it.”
The new A320 line will replace the A380 “super jumbo” facility at Toulouse. This is being shut down after poor sales of the giant airliner resulted in Airbus announcing last year that the A380 would be discontinued.
Developments at the pan-European plane-maker came as Boeing was reported to be looking to raise $10bn (£7.7bn) in debt to bolster its balance sheet as the company reels from the 737 Max grounding.
The US aerospace giant has already said that issues with the Max have landed it a $9bn-plus bill. Aviation economists have calculated that each month the Max is grounded results in another $1bn of charges.
However, there was some good news for Boeing, with industry sources suggesting that its 777X - a new version of its established wide-body airliner - could make its first flight in the next few days.
The 777X was initially scheduled to take to the air last year but problems with its engines delayed the maiden flight.