Winging It Without Boeing: How Airlines Are Adapting Their Fleets
Winging It Without Boeing: How Airlines Are Adapting Their Fleets - Airbus Expansion – A Boon for Airlines Amidst the Boeing Drought
The prolonged Boeing 737 MAX grounding has left airlines scrambling to meet demand amidst aircraft shortages. But while Boeing struggles, its European rival Airbus is capitalizing on the opportunity. Airbus has seen surging demand for its popular A320 family of jets, which compete directly with the 737 MAX.
Airbus was already producing the A320 at full capacity before the MAX grounding. But with airlines desperate for narrow-body jets, Airbus has ramped up production even further. The company now produces over 50 A320 family aircraft per month - an unprecedented rate for a commercial airliner.
This production expansion has thrown struggling airlines a much-needed lifeline. Carriers like American Airlines and United Airlines have delayed retirement of their aging fleets and deferred new deliveries while waiting for the MAX to return. Meanwhile, Airbus has helped fill the void.
The A320neo is proving an able stand-in for the grounded MAX. Its updated engines offer 15-20% better fuel efficiency, allowing airlines to serve similar routes as the MAX while reducing operating costs. For airlines strained by high oil prices, the neo's fuel savings are hugely attractive.
Airbus has also brought new customers into the fold. VietJet, which flies an all-Airbus fleet, has taken advantage of the MAX grounding to accelerate expansion plans. The Vietnamese carrier has nearly 200 Airbus jets on order, including the A321neo which overlaps with the MAX 200 model.
The flexibility of Airbus' production facilities has been crucial to meeting this booming demand. With plants in Europe, North America and Asia, Airbus has adapted nimbly to airline requirements. This geographical diversity helps Airbus mitigate supply chain disruptions and labor shortages.
Of course, troubled Boeing still has cards to play. Its forthcoming 737 MAX 10 aims to match the A321neo's range and passenger capacity. And early-2020s debuts like the long-range A321XLR may be joined by rumored Boeing equivalents.