Airbus CEO Confirms Bombardier Jet Program Takeover Proves Worthwhile

Guillaume Chevasson, the newly appointed CEO of Airbus Canada Limited Partnership, has reaffirmed the company’s commitment to the Bombardier jet program takeover. This move, which granted Airbus control of the C Series jet program in 2018, is deemed strategic for the company. Despite facing challenges, Chevasson expresses optimism about the A220 aircraft’s profitability and growth potential.

Airbus Commitment to A220 Program

Airbus took over the C Series program, now known as the A220, with the aim of enhancing its portfolio. Chevasson leads approximately 5,000 employees at Airbus’s Mirabel facility in Quebec and emphasizes the importance of the A220 within the Airbus family. He states, “There is no debate. There is no doubt” regarding the program’s value.

Production Challenges and Targets

• Airbus aims to produce 14 A220 jets per month to achieve break-even.
• Recent adjustments have set a target of 12 jets per month by 2023.
• Current output stands at 7-8 jets per month.

Significant challenges, including supplier bottlenecks and manufacturing delays, have hindered achieving these production goals. Recently, Airbus indicated that reaching the ambitious 14-jet target would not happen according to earlier plans for 2026.

Engine Issues and Customer Trust

The A220’s engines have presented notable challenges. Pratt & Whitney, the engine manufacturer, reported a widespread defect linked to contaminated materials. This defect affected the operational status of many A220 jets; as of last October, around 18% of the global fleet was inactive.

Restoring trust in the A220 is essential. In 2022, Airbus secured orders for 49 A220 jets, a modest improvement from 17 orders in 2021. However, delays for repairs could keep aircraft grounded for extended periods.

Future Developments

Airbus’s strategic move to take on A220 work from Spirit AeroSystems in Belfast aims to enhance production efficiency. Chevasson highlights that these changes should enable a smoother production ramp-up, with an emphasis on improving engine issues with Pratt & Whitney.

Investment and Market Outlook

• Quebec initially invested $1 billion in the C Series program.
• The province’s stake in the partnership increased from 16% to 25% post-takeover.
• Current valuation of Quebec’s investment is approximately $300 million.

Chevasson notes that while the immediate financial recovery of Quebec’s investment remains uncertain, Airbus’s operations have created 2,000 jobs and strengthened local aerospace capabilities. Airline interest in a larger, stretched version of the A220 is alive, with carriers eager for the 180-passenger option.

Conclusion

As Airbus navigates through its challenges in the A220 program, the future remains promising. Chevasson looks forward to exploring new opportunities in Quebec. The unique capabilities of the Mirabel facility position Airbus well for future growth and innovation in the aerospace sector.