The A320NEO family is the best selling new generation narrow body aircraft available on the market today. However, due to supply chain difficulties, caused by continuing issues with deliveries of the Pratt & Whitney PW1100G engine, the company has been forced to alter its plans substantially. NEO Deliveries in 2017 are shown in the chart below, and illustrate how far Airbus is off its goals from 2012 and even what they called for at 2016’s Innovation Days. Note that the planned production rate of 60 is the top line of the chart, and the gap has remained substantial so far this year.
The Initial Plans were for an Aggressive Transition
Back in 2012, Airbus
had planned a short transition from its current engine option to new engine option aircraft, with an initial supply chain build of parts for 44 aircraft per year. Klaus Roewe, A320NEO family Senior VP, indicated “we have no room for delays and recovery during the cut over from the old aircraft to the new, which is very fast.” That planned short transition did not occur and has sent Airbus and its supply chain back to the drawing board to adjust scheduled CEO deliveries forward and push NEO deliveries back. While NEO deliveries are slowly improving, they continue to fall well short of Airbus plans in 2017.
By 2016 at Innovation Days, Airbus was indicating a plan for 50% CEO and 50% NEO variants, but with delays, results weren’t even close for 2016, in which 68 of 545 aircraft were NEOs, hardly near a 50/50 proposition at only 12.4%. Airbus also announced in 2015 plans to reach a production rate of 60 narrow-bodies per month starting with the 1Q of 2017. Clearly, that goal has also not been met.
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