Airbus has backed up the Farnborough declaration by chief salesman John Leahy that the global recession is officially over, confirming that it will ramp up A320 output to 480 aircraft a year within 18 months.
Boeing is already pushing up 737 production by 10% to 35 units a month and looks set to follow its European rival imminently with further rate increases.
The production boosts come in the wake of a raft of orders from lessors - somewhat ironic as it was these very same organisations that not long ago screamed for output to be slashed in fear of over-capacity.
While these demands were ignored, Airbus and Boeing did peg output rather than continue with ramp-up plans. The dreaded over-capacity didn't really materialise, primarily because many airlines accelerated the phase-out of fuel-thirsty older jets, replacing them with shiny new ones. This policy continues, with carriers like Southwest Airlines planning to keep fleet growth static despite an influx of new aircraft.
So with the world apparently back on an even keel, output hikes planned two years ago are once again being pursued. As well as keeping customers that want near-term slots happy, the rises should ensure that Airbus and Boeing can "pile'm high" in the face of competition from new entrants like the Bombardier CSeries.
But the increases won't look half as smart if that much vaunted double-dip recession becomes a reality.
Source: Flight International
