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Monday, June 4, 2018

The Airbus A-330 Program Has Some Concerns

Its an A-330 market crumble. They had customers but few in number relative to the few orders received. In fact, the A-330 book stood at 300 units in its backlog after Hawaii canceled its batch with Airbus. Then the Iran deal and Trump closed off another 32 A-330 NEO 900's and another 4 of its CEO A-330-200s. Out of 36 A-330 booked it will have snuck two units out for delivery to Iran before the embargo began.




If Airbus makes fifty A-330's a year with this standing order book the program closes its doors in four years provided it gains more orders and doesn't lose any more orders. The pinnacle moment was when the Iran deal closed out 34 orders already booked by Airbus. Dropping those dead orders lowers the 300 unit cushion it had made down to 266 units for filling until its end. The notion Airbus will sustain this program by selling hundreds of A-330 in future years becomes a risky notion. 

More customer may convert orders over to Boeing if it announces its own NMA this year. The A-330 has had only one order in the first four months of 2018 which signals an ailing program unless Airbus has more bookings yet announced or unrevealed during the month of May.

Airbus cannot withstand a sub 50 unit order year for the A-330. A  trend has started with Boeing as it low balls its 787 fleet offerings against anything Airbus offers. If the current market trends are maintained for another several years, then the A-330 NEO program becomes a big Airbus failure.  

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