Airbus Output Target Uncertain Over Pratt & Whitney Deal

Key Production Goals at Risk

Airbus's primary aircraft production target is facing significant uncertainty due to an unresolved engine supply agreement with RTX-owned Pratt & Whitney. The lack of a deal for 2026 and 2027 creates a major challenge for the planemaker's future output goals.

Overview of the Supply Dispute

The core of the issue is a dispute over the allocation of engines between new Airbus production lines and the maintenance shops serving airlines with existing fleets. Pratt & Whitney supplies engines for approximately 40% of the benchmark A320neo-family jets. While engines are currently supplied on a short-term basis, the absence of a long-term contract complicates production planning.

Impact on Production and Deliveries

This supply uncertainty directly threatens Airbus's target of producing 75 narrowbody jets per month by 2027, a significant increase from the current rate of about 60 per month. The challenge is already visible in delivery figures, with Airbus delivering 19 planes in January, a decrease from 25 during the same period last year.

Conclusion

While the president of Pratt & Whitney’s commercial engines division has expressed confidence in reaching an agreement, the clock is ticking. The industry is closely monitoring the negotiations, as a resolution is vital for Airbus to solidify its production forecasts and maintain stability in the aviation supply chain.

FAQ

Q: What is the main issue between Airbus and Pratt & Whitney?
A: The central conflict is a disagreement over allocating engines between new aircraft manufacturing and maintenance support for airlines.

Q: How does this affect Airbus's production target?
A: It jeopardizes the goal to produce 75 narrowbody jets monthly by 2027, as Pratt & Whitney is a key engine supplier for the A320neo family.

Source: Investing.com