Page 7 - AAA MAY - JUNE 2018 Online Magazine

very good yield and returns – so perhaps IndiGo is also a possibility for a A330-900 buy. Airbus has not
now an order for 200 airplanes doesn’t seem secured any orders for the A330neo orders this year and the
that far-fetched and if rumors are right, then manufacturer announced in April it would trim total deliveries
Airbus and Boeing will definitely have reason to 50 in 2019, compared to 67 in 2017. At the recent IATA AGM
to cheer at Farnborough.” in Sydney, Australia Airbus chief commercial officer Eric Schulz
conceded to AirlineRatings.com’s Editor Steve Creedy that the
Widebody Appeal route proving flights held just before Farnborough was when the
n widebodies Bernstein sees rubber hit the road. “So far we are extremely satisfied with the
good news yet challenging news performance of the plane. After the first phase of flight tests,” he
for Airbus with the A350 clearly said. “In terms of delivery, we are working very closely with TAP
Othe key. “The good news here is but we are within the last delivery dates we made public before
that the program appears to be roughly on so there is no change. If anything, the program is doing quite well
plan in terms of production rate and cost. now,” Schulz told Airlineratings.com. On the question of demand,
This means that breakeven profitability is
expected by 2020 and that the production
rate should be at 10/month by the end of
2018,” says Bernstein.
While the A350-900 is a winner and well
received Bernstein says it continues “to
have questions on the A350-1000, which we
believe to be short on range due to engine
performance. The order book for the A350-
1000 remains soft.” Overall this program
should be a positive driver of free cash flow
as losses are reduced. Next decade, it should
be a major contributor to earnings and cash
flow, as gross margins rise it adds.
But it cautions that the A330neo has
“been slow to capture orders and entry-in- Schulz acknowledged Airbus had suffered two defeats in a row
to-service has been delayed due to the with Hawaiian and American and the losses were unfortunate.
engine (Rolls’ Trent 7000). We believe that “In this particular case, I am not particularly anxious about the
the price has been substantially discounted future of the 330neo,” he said. “Just here over the last three
in order to gain traction.” “The airplane lost days I’ve seen many, many customers very interested about the
out to Boeing’s 787 at American Airlines, neo and we have deals in process. I am quite hopeful that we
which Airbus attributed to aggressive pric- will continue to find our place in the market.”
ing by Boeing,” says Bernstein. But on the Schulz said the North American market had also been difficult
upside, it suggests that it’s likely that the for the A330ceo and he would focus on other markets. “I think
66 A330-900 order from AirAsiaX will go when people will start to see what has been done with that
ahead despite rhetoric about a 787 order. airplane and the capability, the extra range it offers, the extra

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