Jetrader - Spring 2016 - 15

Among the A320 Family production
components being shipped from Hamburg,
Germany, to Mobile, Alabama, is the forward
fuselage section for a JetBlue A321ceo aircraft
to be delivered in 2016.

backlog. And between now and 2034, there
will be a need for 32,500 new large aircraft,
both passenger and freighter. Any talk of an
unsustainable order bubble is overstated.
The world's airlines are extremely profitable, and the demand for air travel continues to grow. And in some regions, like Asia,
the growth is phenomenal. We will deliver
on our production plans.
JT: With just two manufacturers of large
jets in the market, is there a need to
compete in all market segments? Would
the bottom line of the OEMs benefit from
a "live and let live" policy? For example,
is there an absolute need to develop an
A350-1000XL to compete with the 777-9?
JL: Airbus has thrived on competition,
and we welcome it. As I said earlier, competition breeds progress. Product launches
are based on sound business decisions. The
A350 XWB has the advantage of being an
entirely new design, and the A350-1000
was designed to compete directly with the
older 777-300ER, having a similar size, more
range and burning 25 percent less fuel.
There are about 950 aircraft in this market
that will need to be replaced, and we forecast good continued demand for aircraft
of this size.
JT: When do you think the world will see
a third manufacturer of twin aisles that
are attractive to operators worldwide?
JL: All manufacturers continue to look
at opportunities in the market, and in the
decades to come, new competitors will
inevitably challenge the established order,
but I don't see them as an immediate threat
to Airbus. At least not for the next 10 years.

JT: With now close to half of the orders
directly and indirectly coming from lessors/investors, should the focus shift
from developing aircraft purely for the
airlines to a product strategy that will
preserve the value for investors?
JL: The aircraft financing market is stronger now than it has ever been. We develop
aircraft that preserve value for every customer, be it airline, lessor or second market
customer. Our family philosophy and bringing incremental efficiencies to the market
maintain the investment worthiness of our
successful, well-designed aircraft.
JT: Airbus projects a need for 32,585 new
passenger aircraft - valued at US$ 4.9
trillion - over the next 20 years, based
on its latest forecast. What makes the
next 20 years so different than the past
20 years in terms of need for new aircraft?
JL: 20 years ago China only had 400 mainline passenger aircraft in-service; today it's
2,300 aircraft. The emerging economies
have emerged over the last 20 years. There
is debate regarding "bubbles," but over the
next 20 years, airlines in emerging markets
will continue to drive growth in our industry as they mature and reflect the size of
their national economies.
JT: Airbus has expanded its final assembly facilities outside of Europe to China
and now to the U.S. with the Mobile,
Alabama, facility preparing for its first
delivery in the coming months. How was
this decision made, and what impact does
it have on the commercial business?
JL: We could not be prouder to be manufacturing our aircraft in the United States -
the sun never sets on Airbus is our new
mantra - our Alabama facility allows us to
make our planes 24 hours a day around the
world. Mobile is part of our global manufacturing strategy - we are the first truly
global aerospace manufacturer. The global
manufacturing presence brings a number
of advantages, not the least of which are
greater manufacturing capacity and stronger
ties with our customers and suppliers. It
also benefits the U.S. economy by creating
more jobs and greater competition there.
As far as why we chose Mobile.... When we
were looking for the original site back in the
tanker program search, we needed an airport
and a deep water port, because we were going
to ship our major component assemblies by

We looked all over for
the right place, but
Alabama had it all.
It had the facilities,
the training programs,
people with the right
skill sets, and the
right attitude from the
governor on down.
ocean barge. The tanker was based on the
A330 airframe, and we were dealing with
pretty big pieces of equipment. When we
changed to the A320 Single Aisle program,
which is a better deal for us, and for Mobile,
we had already built up a good relationship
with all the relevant people. In addition, our
Engineering Center there already had a strong
foothold in the community. People knew who
Airbus was and what we brought to the local
area. That said, it took the better part of a
year to develop the business case for putting the A320 Family manufacturing facility
there. We looked all over for the right place,
but Alabama had it all. It had the facilities,
the training programs, people with the right
skill sets, and the right attitude from the
governor on down.
JT: Boeing talks a lot about the middle of
the market aircraft. What are your ideas
about this? Is the A321neo already such
a middle of the market plane, or is there
room for a small twin aisle?
JL: Boeing talks about a market they
are unable to satisfy with their current
products, namely the 737 and 787. Airbus
offers airlines the A321LR with 757 range
but 25 percent lower fuel burn and the
A330-800, depending on the flexibility they
require. The A330 Family is undisputedly
the best regional widebody aircraft, and
the A330neo takes efficiency to the nextgeneration level.
JT: In your travels around the world selling aircraft, what deals stand out as the
most memorable?
JL: From my very first deal to my most
recent, each is memorable for a different
reason. I'd rather not single out any particular sale, but let our sales history speak
for itself.
Jetrader * Spring 2016 15

Jetrader - Spring 2016

Table of Contents for the Digital Edition of Jetrader - Spring 2016