Airframer wants more countries participating in production for new programmes to boost sales, starting with A350

Airbus plans to boost outsourcing of aerostructures packages on new programmes to upwards of two-thirds of production in a bid to expand in markets such as China, India and Russia.

Airbus chief executive Gustav Humbert says the European aircraft manufacturer is outsourcing significantly in a bid to target expansion in new markets with potential for future orders.

“A 30-33% share [of the value chain] suffices, when we still hold the core competencies in our own hands,” Humbert said last week in Toulouse.

Airbus has only recently said it intended to outsource about 5% of A350 production to China, and roughly 3% to Russia. Speaking earlier this month at the official launch of the A350, Humbert said that in addition to tapping into a greater foreign engineering resource, the role that the aerospace industries within those countries could play in the development costs of the A350 in terms of risk-sharing would also be greater.

According to Humbert, total risk-sharing participation in the A350 – where partner companies assume complete responsibility for a part of a programme, from design to manufacturing, including the corresponding investment and profit sharing – would amount to 40% of the development costs.

“At 40%, the risk-sharing partnerships on the A350 will represent a much greater share than on the A380 and will be very much be concentrated on the airframe,” said Humbert.

Clarifying the chief executive’s remarks, Airbus says that the increased outsourcing will be “an increase in packages – mainly aerostructures – which will go out to risk-sharing partners as design and build”. It adds that a figure of 60% is more likely, and that its objective is to retain core competencies, including final assembly.

“Obviously, the opportunity to outsource will be greater on new programmes such as the A350. Existing programmes will however retain their existing workshares,” says the company.

The €4.35 billion ($5.2 billion) A350 programme was launched earlier this month by Airbus shareholders EADS and BAE Systems.

AIMEE TURNER/LONDON

Source: Flight International