Airbus' Big Problem: Is It Just Too Popular?
ฝัง
- เผยแพร่เมื่อ 10 ก.ย. 2024
- A few weeks ago, Airbus reported its half year results following the quarter that ended on June 30th, 2024. While consolidated revenue increased slightly compared to last year, it reported a decline in adjusted operating profit in the second quarter.
Supply chain challenges amid a fast-growing backlog have presented the company with a big dilemma. Indeed, the company’s CEO says that it has been unable to deliver aircraft in a timeframe desired by customers, forcing it to REFUSE orders.
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Airbus suffering from success
Boeing: “Must be nice” 🙃
😭🙏🏼
@@d.b.cooper1Boeing will be sold out soon to, the supply chain is already suffering so they can’t make planes fast enough
@@tjanson1 Doubt it. Boeing simply is too bg too fail. Even if you take out the military contracts. The government would never allow it to be touched.
Airbus is doing the smart thing by not making promises they can't deliver. If the airlines want a quality product, they'll simply have to wait. Airbus is also clearly learning from Boeing's failures by not stretching and redesigning the a320 but rather acknowledge that it's time for a clean design to replace the a320 entirely. Boeing needs to be taking notes at this point.
The thing people don't understand is Boeing was working on a clean sheet replacement for the 737. The introduction of the NEO from Airbus turned the market on it's head and forced Boeing to scrap the project to respond to Airbus unless they were to lose almost their entire narrow body market share. That's the TLDR version of how we got where we are today and why we got stuck with the MAX.
Exactly, the Boeing 737 MAX 10 is so stretched out, Boeing needed to make special landing gear so the tail doesn't scratch the runway 😂
@The_Timer_Guy Airbus did the same with A321 stretch + XLR
they could improve their output by cutting corners, ignoring paperwork, and threatening staff to work faster. Nothing could possibly go wrong
EU regulations gonna be on their ass for just thinking about it
That's how you know you're doing well as a company 😂
Naa fam,
This is due to duopoly
Boin## have lost customer/industry trust.
My son was flying to Portugal. As he is a big fellow, he was assigned a seat next to an emergency exit. That was not the first time. He got the explanation of how to open such a door in case of an emergency before. Awaiting departure he saw a flight attendant coming to him, so he asked: "When will they tell me how to operate this door?". The flight attendant looked at him and said: "Don't worry, this is an Airbus".
That was an unacceptable statement by the attendant. No safety comparisons are to be had in the aviation industry by those who work in it. You may have a point of view at home but no comparisons when working!
@@filledwithvariousknowledge2747 Chill out
😂😂 nice joke @@filledwithvariousknowledge2747
One of the disadvantages (to customers) of the duopoly
do you really wanna fly on a chinese aircraft?
@@JingJao if you are referring to the comac planes, I would 👍
Embraer and Mitsubishi should make bigger airliners
@@CatBot007 how much investment and time would that call for?
@@MM-np4md The c919 is made with western parts.
A FULL Chinese plane? HELL NO
Russian planes are actually good. I trust Russia.
Airbus is part of a duopoly. It never considered that it could become a monopoly, neither did it's subcontractors. Now that it's being forced to become one it can't adapt fast enough. That's why Boeing getting it's act together, or being completely replaced by another new company, is so important.
Being replaced sounds better.
@@wadehiggins1114 unfortunately there isn't a replacement. No company that I can think of has the capability, both in terms of engineering abilities, capital and political backing to make it happen. COMAC...well it will be a long time before the west buys it.
Airbus isn't becoming a monopoly lol.
@@eniolafolorunso1095not by choice but Boeing’s own failures have given Airbus the market dominance without even needing to try.
@@eniolafolorunso1095 Airbus has 2250 more plane to build than Boeing (~8500 vs ~6250)
If Airbus get +500 more a320 orders in 2025 they are 💀💀 so they need to slow down orders
sad to think Airbus is unable to take new orders at present, but this just highlights how successful the company and this plane is
I'm a bit afraid, if Airbus wants or will ramp up production, they will go the same way as Boeing.
More pressure on their employees is asking for trouble.
Don’t worry they won’t. They aren’t American.
No because for now there are no DEI policies enforced like in Seattle compared to Tolosa. Therefore there is no such risks because they hire basing on meritocracy not DEI.
@@alessiosem2238 I hope you are right, but what means DEI policies?
@@arienoordzij3823employing women and minorities(LGBTQ++++...) just for the sake of diversity(to suit political ideologies and speeches) and not based on qualification and competence.
@@alessiosem2238 You obviously don’t know how airbus operates and how work rights function on France. Airbus was founded like one big “Dei” company to a multiple european aircraft manufacturer, so it has been investing in its own corporate uni and training a lot and trains a lot new workers
Given the 737 Max fiasco, I am surprised Embrayer hasn't been making a move and designing a competitor to the 320 family, especially as I find monopolies unhealthy for industry.
They're unwilling to take on that risk of certification cost.
It’s a very very big step to challenge the big 2. It’s at geo political level too, not that Brazil is not important, but not at level yet
Designing a new aircraft and a production facility is a years-long process, close to a decade if you're doing it clean-sheet like Embraer would have to. Bombardier started development of the CSeries in 2008, for example.
Even if they did take that risk, they would probably also be waiting on some of the same suppliers, but have less priority than Airbus or Boeing.
Bombardier really tried with the C series but got cold feet, sold it to Airbus and now it's the A220 which is not quite a 737 or an A320 competitor.
Embraer has the E2 series and that's kind of up there with the A220, but not quite.
COMAC is really trying to be the 3rd major airplane manufacturer, but they have a long way to go before they have the production, parts network, and certified aircraft before they are good to go.
Well, at least the A330neo still can be ordered
Ordered a dozen after reading your comment. Before theA330neo becomes the next item like toilet paper during the pandemic.
Glad to see Airbus refuse new orders, instead of sacrificing build quality of their products. I could easily see another manufacturer pushing their planes out of the assembly halls, even if bolts are missing!
At least AIRBUS is being honest about not being able to keep up with the damand. That’s not an easy thing to say.
Also happy to know that Airbus is designing a new clean sheet narrowbody. Boeing shoud do the same as soon as the 777x is certified to focus on designing a new clean sheet norrowbody that replaces the Max.
it already is - look up the TTBW project with nasa
It makes it a lot easier for Airbus to be honest, in the knowledge customers can't go anywhere else at the moment. But I agree, being honest will always be a winner, despite the world we are living in!
I’m sure they are after all the issues with the 737 MAX it’s obviously just not public
The trouble is that Boeing probably no longer has the cash to do that. Which is why they keep BSing everyone that they don't need to do it .
I’m sure that Kelly Ortberg the new CEO will keep working with NASA in working on their collaboration on a new aircraft type. I’m also hoping that he’ll look into designing an NMA that Boeing so desperately needs.
Suffering from success is crazyyy
Can’t help but feel like the situation at Airbus and Boeing, with seemingly unlimited demand for new planes and orders being placed so far out in the future, is essentially a bubble. One that sooner or later will burst. Considering the current condition Boeing finds itself in, and with Airbus now having to turn away orders I wonder if we are starting to see the beginnings of the bubble bursting already. All I hope is things turn out well for Embraer and they start benefiting from this. Even though their planes aren’t selling the way Boeing and Airbus’ have they make fantastic aircraft, have great engineers, and the regional market is still a very important part of the industry
Making commercial airplanes always has been a notorious boom-and-bust business. We are in the boom phase for sure so, yes, the bust will come some day, some how. But no-one can predict when, or how big it will be. So it is absolutely the right thing for everyone for Airbus to try and make hay while the sun shines.
Given these lengthening delays in supplying new aircraft, the airlines will need to get better at refurbishing their existing aircraft. Even if it burns more fuel an older aircraft will still make them more money than not flying at all.
Hence why there must be more than one reliable supplier. I know people want to drive that other supplier into the ground as much as they can, but it’s not good for anybody, including the airlines us passengers use. Higher fuel bills we have to pay, older cabins that are less comfortable, potential unreliability with older jets, the list goes on
That means these few years is the perfect time to ride vintage aircraft - not from the 70s/80s but the 90s/00s. Lufthansa is flying a variety of quadjets, even Cathay Pacific/hkexpress are clinging on to a few 20-ish year old A320s and A330s.
These are luxury problems for Airbus
Embraer should really try to sell itself and its largest jets as a quicker delivery product and try to competw at the shorter haul for now... if it can get its own manufacturing working solidly.
Airbus needs to vertically integrate: buy the suppliers causing the bottlenecks and increase their efficiency.
I think Airbus needs new lines, they need to ramp up the production.
Do you have a couple billions to start up new factories moron?
Too big a risk of sacrificing quality. Don't want to be known as the European Version of Boeing.
New lines are in the works, but for now the main issue is supply chain
Airbus will build a new assembly line in Tianjin, China in 2028
But it is not assembly lines that are the bottleneck. It is part supply - they have over 1,000 suppliers for a jet. And they can't afford to pressure those suppliers to build quicker for fear of them doing a Boeing and sacrificing quality for quantity.
airbus needs a new factory to build more a320neos
...maybe you didn't watch the video but the issues are mainly down to the supply chain, not assembly. Building a new factory isn't going to help them if the supply chain throughout remains the same.
Airbus will build an assembly line in Tianjin, China in 2028
which is the assembly line for A320 neo family
Boeing is literally a flying coffin.
😂👍🏿
That is over-exagerated. The real problem is being a company that has a number one prioritiy to satisfy stockholders. Greed is the problem. The engineering is there. Piroities are set wrong.
They will be fine as long as they keep building them right
boeing laughed at Airbus. Who's laughing now? 😂
Maybe Airbus should just buy Boeing and use Boeing’s facilities to build more Airbus aircraft.
Boeing is worth more than Airbus….
@@tjanson1 So ?
@@jonpetter8921 he said maybe Airbus should just buy Boeing, Boeing is worth more so that does not make sense
@@tjanson1 I see. I thought he talked about Boeing facility, not Boeing itself.
But Airbus buying the civilian division of Boeing is kinda feasable ? If you take away the military division ?
Airbus has too much demand and can’t keep up, meanwhile Boeing is going entire months without getting a single order.
What I don't understand: Why doesn't Airbus raise the prices for it's aircraft to a level where supply meets demand?
Because Boeing will always be ready to offer those customers a lower price. IAG for example has already begun ordering 737 MAXs despite airlines in the group like BA and Aer Lingus already being big A320 operators.
Besides that would not look good among the customers - greed would be punished !... we must think beyond tomorrow !... we are not in the vegetables market !...
Airlines might delay buying new planes because of it because it would make it more economical to keep flying older planes. And when they finally do end up buying new planes they might be going to Boeing and not Airbus.
Actually A321NEO (LR/XLR in particular) is already substantially costing more than MAX9/10 - but given it can do what MAX can't do many airlines still flock to it, including MAX customers.
Also it's not like MAX queue is shorter either, especially after the certification delay and production cap.
They actually did. They arent offering the massive discounts that they used to simply because they dont have to.
Having to turn down customers because of overwhelming demand is a luxury problem for any company.
When this happens because the main competitors planes keep falling apart or out of the sky, is a tragedy.
But criticizing Airbus for this situation just shows ignorance unless there is a hidden agenda behind this video?
Please explain how this video appears critical of Airbus? The video explains the company's situation, taking quotes from Airbus executives as its foundation.
@@LongHaulbySimpleFlying "Airbus' Big Problem"
Has anyone else noticed how Airbus workers are always in uniform and look professional while Boeing workers wear whatever they want and looks like a backyard company?
I don't see anyone commenting on the fact that industry giants like Airbus are weary of industry fluctuations. It is ludicrously expensive (and time consuming) to build out new facilities. When covid hit, suddenly all orders were cancelled. Same as for 9/11 and the recession of 08-09. Right now Airbus is "losing" some money due to not having enough production facilities. But facilities standing still? That's way more costly
very true!!
Its a good problem to solve
Considering airlines are returning their Airbus products probably is a bigger issue than production.
It is a perfect example of " suffering from great success "
Airbus need to double or triple USA A220 production
It can’t with all the issues with A220s now
I think this is a great opportunity for Embraer to expand.
In theory they could develop new planes, but it usually takes years+billions in development. I red somewhere, that they have necessary staff to do that, but they want to focus on their regional planes. And I think their financial situation is not great to invest billions in a completely new plane.
Embraer would get tariffed to death like Bombardier, selling military aircraft is a better bet.
Airbus should rent Boeing's facilities & resources to streamline their production
To think as well that Egyptair handed back its 220s and there is a waiting list up until 2030.Bet they were snapped up but who took them ?
Perhaps the company should open a line or two in the UK.
Why on Earth would they build a new assembly plant in Europe in a *non-EU* country? They already have assembly plants in Germany and France, they will just expand those (as well as the American and Canadian ones).
Besides, most (if not all) wings are made in the UK.
Airbus makes plane parts all over the EU, this is a vestige of how Airbus came to be in the first place as a European Aircraft consortium. The UK is where they make wings.
Hopefully another company will be able to compete with airbus and Boeing in the next years 🙏🏽
Boeng is busy finding ways to bring back the 2 austranout…plan for 8 days trip, end up have to stay there for 8 months.. really sucks..
Sounds like the premise for Gilligan's Island!
"Wait, u guys could refused orders?"
- Boeing 😭
My first thought was "ok, luxury problem", but if Airbus can't keep up with production, they cannot capitalize properly on Boeing's current relative weakness, which might hurt them in the future.
Just a simple thought....Is the A330-800, which is horrible to sell, built at the same line as the -900?
IF NOT, would there be a 2th chance to upload this type for sale, due the fact of the long waiting list of planes bought from Airbus? Maybe a new less efficient plane, 'tomorrow' instead of waiting 5 or 10 years for the one you want!
I mean they might as well accept orders just tell customers that they won’t get their planes until 2030
Why is taking so long airbus & Boeing to fix the supply chain issues, when most other industries have recovered
It's commercial jet planes. It is not easy to make these more as it needs extremely large facilities for its assembly.
Things take time. Especially in a ruthless duopoly that has for decades forced suppliers to operate on bare thing margins. The industry isn’t made for a switch off/on event like covid. And unlike other industries there’s generally less suppliers supplying the duopoly.
duopoly. because they can. they know they still have an upper hand over customers who are left with very little to no options. this is where China is needed to shake things up.
It's because the commercial aircraft business isn't a business that easily scales up or down. It requires a lot of time and money because the standards for commercial aircraft parts are high and it takes literal years of full time OJT and book work to train the workers for certain jobs. It's not like producing Coca-Cola or coffee mugs at all.😊
That's not a cake factory. It's jet, very sophisticated pieces of machine with a lot safety mesures to satisfy to ensure people's safety. Look the result at boeing with over capitalism thinking? For me it's just a call for a 3 player in the game. Embraer should think of entering the game for the benefit of customers and the whole industry
This is the problem with commercial aviation essentially being a duopoly. Wishing Embraer all the luck from this!
Lets go COMAC! Move!
I find it interesting that on the heels of Smaller twin aisle & larger single aisle trend… airplane maniufactureres are unable to keep up with the demand - compounded by “profit first” operational mindsets that led to production short comings. No wonder Delta is still flying 30+ year ol A320’s
Maybe the CFM Leap 1C that’s on the C919 can be a second option for the A220?
leap 1c is leap only in name, it is a generation behind on purpose (due to unwillingness to give the chinese a top of the line jet engine)
Moreover adding an engine option is a big expense.
@@oadka Gotcha, thx! I also remember reading about the C919 not being able to go as far either.
meanwhile the comac 919 and the MC-21 sit in the background watching the shitshow lmao
C919 engines are french, avionics US, landing gear german,,....
I'm sure they are working on making it 100% chinese one day but they are far from it right now (look at the russian superjet story, many western parts, sanctions, trying to build 100% russian, crash)....and most likely will need new certicication after such a large number of changes.
The mc21 might never fly...
Meanwhile they will be limited by suppliers capacities at least as much as Boeing & Airbus
"MC-21" 🤡🤡🤡🤡🤡
MC-21 is the biggest disaster for over 20 years…
@alexandervt641 Sure you aren't talking about the Il 96? MC-21 is barely 18 and that's including the pre production phase.
@@No-mq5lw Since 2006 „developed“ as MC-21, before as Yak-242. A never-ending story…
Embraer have an opportunity if they're brave enough to make the leap.
A wish Embraer will get much more orders for their awesome E2 planes…
When customers start pushing pressure that’s when mistakes starts to happen because of rushing things…why can’t the airlines just be patient"? At the end of the day it’s better to have a good product late but with no issues than having it n a rush way and then peoples life are lost…
Quality vs quantity. Choose quality. (look what happen to the other guy)
A good problem to have
Boeing is crying in the corner
These guys better not cave into the pressure to rush. Enough whistle-blowers have "fallen out of windows"
This duopoly is bad for the industry. I want to see a new player enter the market. Embraer must be thinking about how they can build a plane that can compete against the 737 and the A320. Who else might be able to step up?
My thoughts exactly.
I would say Comac, since they have the backing of the Chinese government. Their domestic market is enough to build another giant in the industry.
Its just like the vw buzz.
I bet that even 2025-26 stock has been sold & even if they could make more then having parts in stock for extra production isnt possible
Pls start production in india... Or expand the vadodara facility...
Just ordered few dozens of A320s for future 👍
Could this mean increased demand for the E195-E2?
maybe airbus should consider building more plants for a320, brazil or mexico seem to be good options
Makes sense why companies are ordering the max
Good luck ordering the Max
@@jonpetter8921 something is better than nothing i guess
@@bp900 Not in this case
The problem with success
They have to production in india
selling like hot cakes
Guillaume is pronounced ‘Gee-Yem’, with a hard G at the start
Just do like the auto manufacturers. Deliver them without engines, to be retrofitted at a later date 😂
Damn, Boeing really be seeing China catching up and decided to help Comac out
Right now Comac's production rate is nowhere near that of Boeing or Airbus. And apparently their order book is also filled to the brim.
That will open way for the Chinese airlines
COMAC Chance?
Still short on models and certification, but if situation continues...
The union will strike if they open up another production facility
The target of 14 had been set with the previous ~$1b investment in the A220. It was never reached so now they have to invest another $1b nto it. Will this second billion investment to ramp up production work this time?
Are you sure? I think it's still the same plan. The only difference is that Airbus reached a deal with the Canadian government to co-finance the project.
@@RM6737 Canadian government is not involved, it is the Québec (provincial) government. The newest $1b in investment is the same plan to reach 14/month, except that this had been expected to be achieved with the first $1b invested and it didn't come close. Because the A220 is cash negative, it can't self-fund any of the investment to raise production.
@@RM6737 restarting after having lst comment.
01-SEP-2016 CSALP created to own C-Series. Bombardier 51.5%, Québec 49.5%
xx-OCT-2017 deal to offer 50% to Airbus announced.
01-JUL-2018 Aibus owns 50.1%, Québec 19% Bombardier 31% (others submets such as 24$ and 16% were bandied about at some point).
19MAR2019 CSALP Renamed Airbus Canada Limited Partnetship (LP)
12-FEB-2020 Airbus pays $591m to Bombardier to raise stake to 75%. Québec donates buildings/infrastrcuture to CSALP to raise its stake to 25%.
04-FEB-2022 Québec ($300m) and Airbus (900m) invest $1.2b to productise the A220 and target 14/month. This investment was needed because Bombardier couldn't do its share and had to sell its shares in 2020 and it took that long to convince Québec government to waste more money into project. (Bombardier was supposed to invest to finish developping since 2016 and just got to first delivery and left assembly in "pilot project assembly" state).
23-JUL2024 Québec ($300m) and Airbus (900m) invest ANOTHER $1.2b to raise A220 production to 14/month
@@jfmezei Thank you for your reply. I didn't know that.
Its boeing faults
What a waste! Cebu Pacific have spend ₱1.4 billion for more A320neos and A321neos!
They can build more factory,!
Airbus will build a new assembly line in China in 2028
Boeing murders there own employees to silence them
Use Boeing's Everett assembly plant for Airbus production because there isn't much going on in that big building now.
Boeing is a virus now so nope!
I am worried Airbus will "Rest in its Laurels"
witnessing the Fall of Boeing
Definitely not. That's what they do stateside.
Good job airbus , china and russia new planes
Buy Chinese planes instead
3rd
Airbus is literally popular, besides the huge backlog makes other airlines forced to buy older and worse plane like the A320ceo families
You must be american. The A320 CEO is still better than the max.
It's soo nice that airbus pays the media to talk sooo good about them man. Hope they can fix the production issues they're having with the A220.
Airbus has a backlog of over 8,000 orders. They don't have to pay the media anything.
The only thing the A220 needs is an option to those unreliable Pratt geared turbofand.
Typical american
Airbus is 💩
American will always trust their Boeing even thou they murder a few people before
I think that's the worst take I've ever heard
Least extreme Boeing fan:
C’mon man let’s be serious, I’m Boeing guy all the way but you can’t deny airbus is seriously killing it these days.
@@dajuanvariste4751 yea, Airbus is definitely killing it these days, the only things Boeing is killing is... well, you know🤐
Hahah - this video is sponsored by Boeing😅🤣