Airbus plans to outsource half of A350 production

Singapore: Airbus plans to outsource more than 50% of A350 production and is taking note of the global supply chain difficulties that have caused delays in rival Boeing's 787 program. "We are studying carefully the lessons we should take on the 787," . CEO Tom Enders said. "Obviously the supply chain is a concern. . . We are in very close contact with our suppliers, many of which supply both Airbus and Boeing."
The manufacturer has blamed the declining value of the dollar compared to the euro for much of its recent financial woe and it views global outsourcing of A350 production as critical to keeping costs down. "We are outsourcing and offshoring suppliers to an unprecedented extent," Enders said. "We are increasingly not just outsourcing aerostructures but also engineering."
He noted that the company opened an engineering center in Bangalore last year, adding, "I'm certain Airbus will increase its footprint in India in coming years, but that doesn't necessarily mean opening a final assembly line there." Though he emphasized that there are no current plans to launch an FAL, he said, "Everything is possible in India. If they are able to graduate more engineers, then a lot of things are possible."
21/02/08 ATWOnline, US

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Categories: Foreign Feb 2008