Airbus said to cut the production rate of its A330 to 50 jets a year as it continues to lose orders to Boeing’s wide-body jets. Airbus has been forced to cut the A330 production form 67 jets last year to 60 this year and 50 from next year as it faces soft demand for the A330 jets.
Airbus felt a setback last year when the Hawaiian Airlines ordered 10 Boeing 787s instead of the A330 and later when American Airlines ordered 47 Boeing 787s valued at $12.3 billion at list prices, cancelling order of 22 Airbus A350 jets.
A330 passenger version comes in A330-200, A330-300, A330-800neo and A330-900neo variants. Though A330-200, and -300 gathered substantial orders, the A330-800neo left with no orders as airliners opted for Airbus’s newer A330-900neo jets.
“The A330 going down to 50 (a year) is overtly bad news, but we have suspected for some time the A330’s slow sales could mean A350 production moves up at some point,” said Jefferies analyst Sandy Morris in a note to Reuters.
Boeing aims to seize the slow selling A330neo market segment by increasing 787 sales and increase the production rate of 767s.
Boeing physically delivered a record 763 airplanes while Airbus delivered 718 jets in 2017. However, Airbus expressed confidence that it will reach this year’s target of delivering 800 jets.