Airbus is implementing a hiring freeze and cost-reduction measures in response to the competitive landscape posed by lower-priced aircraft manufacturers from China.
The reigning European aviation industry leader is actively
seeking to enhance operational efficiency and minimize production costs per
aircraft in anticipation of the impending influx of exports from the Commercial
Aircraft Corporation of China (Comac). Comac’s strategic objective is to firmly
establish its position as a prominent participant in the Western commercial
aviation sector.
Some Airbus positions may be eliminated, but the “Lead”
initiative does not constitute a formal redundancy program, according to a memo
sent to employees by management.
The internal memorandum, which was verified by the
organization, emphasized Comac’s substantial governmental support and sizable
domestic market. However, it also cautioned that Boeing is likely to emerge
from the present safety crisis surrounding its 737 Max model with increased
strength.
The Comac C919, a direct competitor to Airbus’s highly
successful A320, commenced commercial operations approximately one year ago
following an extensive 15-year planning phase. To date, the C919 has garnered
close to 1,000 orders or commitments, predominantly from Chinese carriers and
leasing companies.
Airbus is currently facing challenges in achieving its
production targets due to constraints experienced by critical suppliers, which
is impacting the planned monthly production rates.
Last month, the European corporation reduced its annual
delivery projection from 800 aircraft to “approximately 770” and postponed the
goal of producing 75 A320s per month until 2027.
The delay has constrained Airbus’s capacity to diminish a
six-year production backlog for the A320. Consequently, it has become
challenging to accommodate new orders for the aircraft, presenting an
opportunity for Comac and Boeing, whose 737 is the primary competitor to the
A320.
An Airbus spokesman said: “In view of the continued pressure
in the supply chain as well as the overall complex economic situation, there is
a need to concentrate our efforts on the fundamentals.
“Airbus has therefore launched an improvement programme.”
The spokesperson mentioned that certain non-essential
internal projects might be temporarily suspended, and personnel may be
reassigned to crucial departments to enhance production output.
Airbus, headquartered in Toulouse, France, operates jet
assembly lines in Germany, the United States, and China. Wing production and
design are conducted at facilities near Chester and Bristol.
Comac is optimistic that more airlines will consider its
aircraft as a cost-effective and accessible alternative to Western models.
It is anticipated by regulatory authorities in both Europe
and the United States that the C919 aircraft may require several years before
it can secure the necessary approvals. Furthermore, it is possible that
additional advancements to the model will be essential before it poses a
significant competitive challenge to established industry leaders such as
Airbus and Boeing on a global scale.