[CNBC Television] Airbus has a great product portfolio and the lion’s share of the narrow-body jet market: BoA
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Ben Heelan of Bank of America Merrill Lynch discusses Airbus’ Q4 results, and whether both Airbus and Boeing can win and/or lose at the same time in what’s become a duopoly in the aviation market.
Europe’s Airbus is planning to ramp up production of its A320neo single-aisle jet, putting the squeeze on Boeing shortly after its U.S. rival registered its worst annual orders in decades.
Airbus is widely thought to be well-placed to benefit from Boeing’s protracted demise. The U.S. aviation company has been embroiled in a crisis since its best-selling 737 Max airliner was grounded last March, following two deadly crashes.
Earlier this week, Boeing reported zero plane orders for new airplanes in the month of January. It also recorded a negative order rate for 2019 for the first time in decades, as customers either canceled or converted orders.
In contrast, Airbus reported Thursday that deliveries of the A320neo aircraft — the direct competitor to Boeing’s 737 Max — rose by 43% year-on-year to 551 in 2019.
The “ramp-up” continued for Airbus Cabin Flex (ACF) version of the A321 plane too, the company said, with almost 100 more deliveries than in 2018.
The aerospace group also confirmed it was discussing “further ramp-up potential” for the A320 program beyond a rate of 63 planes per month. It already sees a “clear path” to further increase the monthly production rate by one or two planes that would mean it could produce 67 planes per month, by 2023.
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