PARIS (Reuters) – European planemaker Airbus (AIR.PA) plans to cut production of its A380 superjumbo from 2017 as it struggles to revive sales of the world’s largest passenger jet, two industry sources said.
It has told its suppliers to slow production to support the assembly of 1.7 aircraft a month from next year, compared with production of just over two a month now, the sources said.
The exact month in which the slowdown would be felt in the Toulouse assembly plant was not immediately clear.
Airbus declined to comment on talks with suppliers.
“We can’t comment on any discussions which may or may not have happened,” a spokesman said.
The company does not publish production figures for the world’s largest airliner, but only targets deliveries.
Sales of large four-engine airliners like the 544-seat A380 have been hit by improvements in the range and efficiency of smaller two-engined models, which can be easier to fill.
Airbus, which has delivered 143 A380s since it began service in 2007, says the double-decker is becoming more attractive due to lower oil prices and helps to solve airport congestion.
But because of long lead times the sources said Airbus had been forced to ask suppliers to slow the flow of parts.
Depending on the exact timing of the change, any slowdown could test the company’s ability to continue to break even on the jet, after stemming losses for the first time last year.
Last year it delivered 27 A380s and has said it expects to continue to break even based on a similar level of deliveries in 2016.
It meanwhile continues to cut costs in an effort to lower the breakeven point to as low as 20 aircraft a year.
Based on a full year, which Airbus counts as 11.5 months, the new production rate would yield 19.6 superjumbos a year.
In February Airbus Group Chief Executive Tom Enders said it had between 20 and 30 A380s on its delivery list for 2017.
(This version of the story corrects second paragraph to read “suppliers” instead of “supply chain management”).
(Reporting by Tim Hepher; Editing by Greg Mahlich)
