Airbus could increase single-aisle airplane production to 50 a month in 2017

EVERETT — There’s another potential single-aisle airplane production rate increase on the horizon.

Reuters is reporting that Boeing’s rival, Airbus Group NV, is talking to suppliers about stepping up production of its A320 family of aircraft to 50 airplanes a month as soon as 2017.

Airbus declined to comment for the story. The European planemaker is releasing its annual financial results on Friday.

The consortium already makes 42 of its single-aisle jetliners a month. It plans to go to 46 a month by the second quarter of 2016, and the company has asked suppliers to prepare for 48 a month that same year, according to Reuters.

Aerospace analyst Scott Hamilton, owner of Leeham Co., says Airbus has told suppliers to get ready for 54 a month in 2018.

In late 2015, Airbus plans to add an overhauled version of the A320 to its assembly lines.

Boeing has similar plans for its competing 737 program, which currently produces 42 a month at the company’s Renton plant. The rate will go up to 47 in 2017 and 52 a month in 2018.

Boeing is talking to suppliers about going to 58 a month, Reuters reports.

Hamilton says the company is considering goiong to 63 a month in 2020.

Boeing figures that is the highest rate it can get without physically expanding its Renton plant.

The two aerospace giants dominate the single-aisle market, with Airbus picking up about 55 percent of new orders.

There is some concern that Airbus and Boeing are flooding the market.

Goldman Sachs recently downgraded Boeing stock from neutral based in part on the company’s exposure to any downturn in demand.

Dan Catchpole: 425-339-3454; dcatchpole@heraldnet.com; Twitter: @dcatchpole.

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