Airbus and Boeing are increasing production rates for their single aisle aircraft dramatically. Boeing has already committed to growing the 737 production rate to 47 per month in 2017, and to 52 by 2018. Earlier this year, Airbus announced it was going up to 46 A320-family aircraft per month in 2Q16, and is examining rates between 48-50 should it perceive the need to match Boeing.   Combined this means the two big OEMs will be able to deliver 100 narrow-body aircraft per month, an unprecedented increase in supply. The Economist also picked up on the long tail impact of this decision.

Once at 100 per month, Airbus and Boeing will deliver more single aisle aircraft in six weeks than Bombardier and Embraer produce in a year.

%d bloggers like this: