Airbus Backs Plane-Upgrade Strategy in Face of Boeing 737 MAX Woes
21 May 2019 - 9:02PM
Dow Jones News
By Robert Wall
Airbus SE (AIR.FR) executives on Tuesday backed the process of
upgrading older-model planes to offer airlines efficiency
improvements in favor of always pursuing brand-new designs after
two Boeing Co. (BA) 737 MAX crashes raised questions about whether
legacy planes can evolve safely.
Boeing's 737 MAX has been grounded globally since mid-March
after two fatal crashes of the model in less than five months. The
model has drawn fire from some lawmakers in the U.S. and elsewhere
for having its roots in a 1960s plane design that has been
repeatedly updated. Safety approval since the start has largely
focused only on the features that have changed incrementally.
But Airbus plays down the idea that the latest version of its
competitor's planes was flawed because it was another upgrade.
"The MAX is not one stretch too many," Airbus Chief Commercial
Officer Christian Scherer told reporters.
Airbus has made upgrading existing planes a core part of its
product strategy too, and is working on upgrading its A321LR,
itself an upgrade of an earlier version of the company's largest
narrowbody. Mr. Scherer says upgrading planes still makes sense in
cases where incremental improvements don't warrant a brand-new
design. The A321 could be further upgraded even beyond the
so-called A321XLR that is now in the concept sage, he said.
Mr. Scherer reiterated Airbus's position that the MAX's
grounding hasn't been beneficial for the European plane maker. And,
echoing his chief executive, expressed concern the MAX crisis could
dent public confidence in the safety of commercial air transport at
large.
At a briefing to reporters, Airbus said it has devised upgrades
for the A220 single-aisle plane it acquired from Canada's
Bombardier Inc. (BDRBF). The change will allow the plane to carry
2.3 metric tons more weight, which translates into more fuel and
around 450 nautical miles of additional range. That capability
should be available from the second half of 2020, Airbus said.
Mr. Scherer downplayed concerns that soft order bookings at both
Airbus and Boeing so far this year suggest that demand for new
planes is slumping.
"It is only natural that you see ups and downs," he said. "I do
not believe we are at the end of a cycle."
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
May 21, 2019 06:47 ET (10:47 GMT)
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