Daily Insight – 17 January 2019 – AIRBUS INVESTS IN MIRABEL AND MOBILE FOR A220

News:  Airbus has broken ground for a new A220 final assembly line in Mobile as well as undertaking a major expansion in Mirabel, Quebec.  The A220 has finally broken into the big leagues, with major orders from Air Canada, Delta, JetBlue, and Moxy, as well as repeat orders from Air Baltic and Delta.  The aircraft has been well received by operators, is performing better than promised, and has been well received by customers.

Analysis:  Airbus has substantial orders in the US market, with 90 firm plus 60 options at Delta, 60 for JetBlue and 60 for Moxy.  At a capacity of four aircraft per month, this should provide adequate backlog at Mobile for more than four years, and Airbus is actively seeking additional orders.  The facilities at Mirabel are being expanded as well, for the international market, and we anticipate major orders for this aircraft in the near future outside the US.  Paris 2019 could be interesting for the A220.2019 could be the year that begins to define the competitive balance between A220 and E2