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Airbus Provides Update on March Commercial Aircraft Orders & Deliveries and Adapts Production Rates in COVID-19 Environment

Issue 4 - 2020
Airbus Provides Update on March Commercial Aircraft Orders & Deliveries and Adapts Production Rates in COVID-19 Environment

 Business impacted by COVID-19 pandemic 

 21 net orders and 36 deliveries in March 2020 

 290 net orders and 122 deliveries in Q1 2020 

 Production rates revised downwards adapting to new market environment 

After a solid commercial and industrial performance at the beginning of the year, Airbus (stock exchange symbol: AIR) is now revising its production rates downwards to adapt to the new Coronavirus market environment.

 In Q1 2020, Airbus booked 290 net commercial aircraft orders and delivered 122 aircraft. A further 60 aircraft were produced during the quarter, highlighting the solid industrial performance, however they remain undelivered due to the evolving COVID-19 pandemic. 36 aircraft were delivered in March across the different aircraft families, down from 55 in February 2020. This reflects customer requests to defer deliveries, as well as other factors related to the ongoing COVID-19 pandemic. 

The new average production rates going forward have been set as follows: 

 A320 to rate 40 per month 

 A330 to rate 2 per month

 A350 to rate 6 per month

 This represents a reduction of the pre-coronavirus average rates of roughly one third. With these new rates, Airbus preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves. Airbus is working in coordination with its social partners to define the most appropriate social measures to adapt to this new and evolving situation. 

Airbus is also addressing a short-term cash containment plan as well as its longer-term cost structure. 

“The impact of this pandemic is unprecedented. At Airbus, protecting our people and supporting the fight against the virus are our chief priorities at this time. We are in constant dialogue with our customers and supply chain partners as we are all going through these difficult times together”, said Airbus Chief Executive Officer Guillaume Faury. “Our airline customers are heavily impacted by the COVID-19 crisis. We are actively adapting our production to their new situation and working on operational and financial mitigation measures to face reality.” 

In its effort to support the fight against the COVID-19, Airbus has carried out extensive work in coordination with social partners to ensure the health and safety of its employees. This has been achieved by implementing new stringent work standards and processes. Airbus is contributing to the development, sourcing and ferrying of medical equipment, including facemasks and ventilators, in support of medical health services.

Airbus adapts Commercial Aircraft Production and Assembly Activities in Northern Germany and Alabama Sites in COVID-19 Environment

06 April 2020 – Airbus is temporarily adapting commercial aircraft production and assembly activity at its German sites in Bremen and Stade and pausing production at its A220/A320 manufacturing facility in Mobile, Alabama in the United States. These actions are being taken in response to several factors related to the ongoing COVID-19 pandemic including high inventory levels in the sites and the various government recommendations and requirements which impact at different stages of the overall industrial production flow. Airbus remains committed to meeting customer demand. Commercial Aircraft production and assembly activities in Bremen will be paused from 6 April until 27 April inclusive, with key business support services continuing on the site. Airbus in Stade will pause production and assembly from 5-11 April inclusive, with some additional pause days in the weeks that follow in selected production departments. Key business support services will also remain active on the site. In Mobile, the pause in production begins this week and is expected to last until 29 April. Certain activities will continue on site, including building and installation maintenance, aircraft maintenance, some critical product safety and customer driven operations, receipt and control of materials and components, critical administrative support and preparation of activity restart. All ongoing work in Bremen and Stade in Germany and Mobile, Alabama U.S. will be done in adherence to the required hygiene measures and social distancing. Airbus is supporting efforts globally to tackle the COVID-19 crisis and has carried out extensive work in coordination with social partners to ensure the health and safety of its employees. This has been achieved by implementing stringent health and safety measures, while securing business continuity across the company. During the past two weeks, Airbus paused production and assembly work in France and Spain for four days to implement the necessary stringent health and safety measures. Production and assembly in France has resumed gradually since 23 March. Commercial aircraft wing production operations in the UK and commercial aircraft production activities in Spain and Canada have been temporarily paused reflecting stock levels and latest government restrictions. Airbus continues to closely monitor and respond to the changing environment to maintain business continuity across its global industrial stream 


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