Airbus Faces 8,000-Plane Backlog and Competition from China

Airbus is working hard to meet the strong global demand for its planes, with a goal of delivering 720 planes this year. However, it also faces a long-term challenge from China’s growing aviation industry.

The European plane maker has a massive backlog of 8,000 planes, which will take years to clear. The demand comes from both industry growth and shorter replacement cycles for older aircraft, according to Airbus Americas Chairman and CEO Jeff Knittel.

Knittel spoke at the Skift Aviation Forum in Fort Worth, Texas, on Wednesday. He said that Airbus has improved its delivery times and supply chain partnerships since the pandemic. He also said that Airbus offers a wide range of products, from single-aisle to wide-body planes.

Sustainability Over Speed
Airbus is prioritizing sustainability over speed in its plane design. Knittel said that Airbus is investing in hydrogen-powered planes, which aim to achieve carbon neutrality by 2035. He also said that Airbus is not interested in supersonic planes, which have a smaller market and a higher environmental impact.

“Our focus is sustainability,” he said. “We’re going toward more an approach of density.”

Autonomous Flights and Cybersecurity
Airbus has also experimented with autonomous flights, using its wide-body A350 without a pilot controlling it. However, Knittel said that pilots will still be needed for safety and public confidence reasons.

As the aviation industry becomes more digital, Airbus is also spending a lot of money and time on cybersecurity. Knittel said that cyberattackers are very innovative, so Airbus has to protect not only itself but also its supply chain.

Competition from China
Knittel acknowledged that China’s plane makers are a potential threat in the future. China is developing its first plane, the Comac C919, which will compete with Airbus’s single-aisle planes.

Knittel said that China will first sell its planes to its domestic airlines, then to other countries that have trade relations with China. He estimated that this process will take 15 to 20 years, after which China will be more competitive globally.

“It’s going to be a process, but the Chinese have been known for their patience,” he said.

Sources: AirGuide Business airguide.info, bing.com, skift.com