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Airbus A330 Production: To Cut Or Not To Cut?

In one of my previous articles I looked at the Boeing 777, which has been Boeing's bestselling model but will be replaced by the Boeing 777X in 2019. Currently there are more orders needed to fill the gap between supply and demand.

The Airbus ([[OTCPK:EADSF]]/[[OTCPK:EADSY]]) A330ceo (current engine option) is facing a similar challenge. The Airbus A330neo (new engine option) is expected to enter service in Q4 2017, with a first flight in mid-2016. So in essence Airbus should accumulate enough orders to keep producing the Airbus A330ceo until the introduction in December 2017 and preferably beyond that point until somewhere in 2018-2020 when production of the neo model picks up pace. In this article I will look whether Airbus will be able to fill the gap.

For the analysis I make the following assumption(s):

  • The gap that has to be closed goes all the way to December 2017. Assembling