Looks To Smaller Planes To Improve Its Fortunes

For all the problems Airbus currently faces with its largest planes, such as the upcoming A350 and flagship A380... the manufacturer is enjoying strong sales for its immensely popular A320-family of smaller, single-aisle airliners.

To meet the demand, Airbus announced Monday it is ramping up production of its narrowbody airliners. Currently, the company delivers about 30 A320s per month... a number Airbus wants to see increased to 36 by December 2008.

Management at the European planemaker approved the ramp-up last week, according to Airbus spokesman Justin Dubon. "The reason is that the backlog for A320 aircraft is so huge," he told The Associated Press. Airbus currently has approximately 1,800 A320 orders in its backlog.

Speeding up production should also free up delivery slots -- which are currently out until 2010.

There is some question, however, whether its suppliers will be able to keep up with the busier workload... a trap Boeing fell into in the 90s, when it attempted to speed production of its 737. But that's a risk Airbus is willing to take, especially for its most popular model line by far.

Delivering more A320s, sooner, will also pump needed cash into Airbus coffers -- money the planemaker can then use to support its larger aircraft programs.

Airliner manufacturers take deposits when planes are ordered... but they don't collect the full bill until those planes are in the hands of customers.

FMI: www.airbus.com