Airbus looking to suppliers, productivity to save on A220 costs
As Airbus increases its footprint in Mirabel, the aircraft manufacturer says it wants to save over 10 per cent in costs on each A220 it produces.
The Airbus A220 assembly line is seen at the company's facility Monday, January 14, 2019 in Mirabel, Quebec.	Ryan Remiorz / THE CANADIAN PRESS
MIRABEL — As Airbus increases its footprint in Mirabel, the aircraft manufacturer says it wants to save over 10 per cent in costs on each A220 that comes off the assembly line.
A majority stakeholder of the project since July 1, the European company held a press conference Monday in the Laurentiens as part of a tour of its North-American sites and outlined its latest goals.
"We have a lot at stake here," said Philippe Balducchi, director of the A220 program. "It's clear this will be a challenge."
He said a significant source of these savings will come from the aircraft's supply chain, given that Airbus is negotiating hard with suppliers to get the best possible prices.
Meanwhile, an increase in productivity and accelerated production timelines should also cut costs, he added.
"We estimate that (the reductions) could be US$3 million per airplane," said Benoit Poirier, an analyst with Desjardins Marchés.
In hopes of accelerating the process, Airbus transferred 10 workers from its A350 program to the Mirabel plant.
Last year the production on the A220 nearly doubled as 33 of the aircraft were delivered to clients — 13 by Bombardier and 20 by Airbus. The European manufacturer hasn't unveiled its 2019 targets.
Airbus, which may offer the plane in a 160-seat configuration, has 537 orders for 19 clients.
In an interview with Presse Canadienne, Balducchi said it would take two to three years to significantly reduce the program's cost.
"Is it fast enough? It's never fast enough," he said. "We're not late but we aren't ahead either. I'd say we're on track."
In the meantime, the conglomerate of Airbus, Bombardier and the Quebec government confirmed a US$30 million investment this spring to add hangars to house the aircraft.
Simon Jacques, head of Canadian operations for the multinational, mentioned the possibility Monday that Quebec will host a fighter plane assembly line and satellite construction plant if Airbus manages to win federal contracts in Canada.
A call for tenders for 88 new fighter planes is expected from Ottawa before the start of the 2019 election campaign in a bid to replace the government's aging CF-18s. Airbus makes the Eurofighter Typhoon.
Boeing, Lockheed Martin and Saab are all in the running alongside Airbus for the federal contract.
Jacques said the construction of a new assembly line would not pose a logistical challenge given the extra space at the Mirabel plant.
He stressed the need for a "Canadian solution," given that the call for tenders would include local content requirements.
According to Jacques, Canada is "really committed" to "stimulating competition," which may open a door to a manufacturer other than the U.S.-based Boeing.
Airbus executives also said they may turn to Quebec for satellite construction if its proposal is accepted up by Telesat Canada, a satellite operator.
The company had solicited offers from Airbus and the France-based Thales Group as part of an Internet service project tied to the launch of "between 300 and 500 satellites," Jacques said.
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