Airbus eyes 'significant double-digit' cost cuts for Canadian A220 jet

|About: Airbus SE (EADSF)|By:, SA News Editor

Airbus (OTCPK:EADSF, OTCPK:EADSY) says it is looking for a “significant double-digit” percentage reduction in costs for the recently acquired Canadian A220 jet program, as it expands production capacity to cope with anticipated demand for the former Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) jet.

Philippe Balducchi, head of the Airbus-led venture which took over production of the loss-making A220 last year, says most of the cost reduction would come from the supply chain as Airbus uses its greater clout in negotiations for parts, with other savings coming from more efficient operations as workers gain experience of building the 110-130 seat jet, whose deliveries doubled to 33 aircraft last year.

Airbus also says the Canadian-developed jet won approval to fly up to three hours away from the nearest airport in the event of a shutdown of one of its two engines, a safety standard which underpins its use on longer-range routes.

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