Thursday 30 December 2010

A380 Build Rate and Rolls-Royce Trent 900 Rate Readiness

Found a newsreel article on the Aviation Week website regarding deliveries of the A380. Airbus has fallen short of its reduced delivery target of 20 aircraft in 2010 due to Trent 900 deliveries from Rolls-Royce, for the 20th aircraft, being impacted by the Quantas in-flight failure. 
Ironically, this aircraft is destined for Quantas and will now be delivered in the first weeks of 2011. A further aircraft for Singapore has also been deferred due to business class seat shortages.
But, the article goes on to detail an Airbus statement which reads as follows:

"In a note to employees, Airbus CEO Tom Enders notes that by “implementing the operational improvement actions we decided a year ago, we have achieved huge progress on the A380 program this year. Outstanding work and lead-times in our [final assembly lines] have been reduced considerably, production costs have come down and our ramp-up from two to three aircraft per month is well underway."

So, taking the positives from this statement, Airbus are close to a build rate of 3 per month and with approx. half of 2011's planned deliveries being Trent 900 engined, that is an average 6 engines per month required from Rolls-Royce.
Elsewhere, Airbus should still achieve a record 500 plus aircraft deliveries in 2010 (461 as at 30 Nov), and have taken 50% more orders than expected so, with Boeing having also delivered 386 aircraft (as at Oct), the Aerospace sector is sounding healthy despite the 787/A380 issues.

Link to Aviation Week 

3 comments:

  1. Hi Merchant, I just thought I would leave a comment, keep up the good work, I read with interest. In fact I have a question for you.
    With an austere 2011 in front of us, VAT on the increase, people having less to spend I fear inflation will be on the rise in Q2,the dollar will remain weak. I have invested in tranches of gold mining over the last eighteen months or so.
    What are your thoughts over 2011?

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  2. Hi Chris, thanks for showing an interest. Tricky question which I will try to pick up on in an article. Good call on Gold mining but, going forward, keep a close eye for any switch in investor sentiment should economies and the dollar begin to show real momentum. Should this be the case then the safe haven reason may go away leaving the increase in Asian wealth and scarcity as the remaining drivers. Is there a bubble forming, who knows? It isn't so long ago that $200 for a barrel of oil was being touted!

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  3. Do you or any of your readers have a feel for when the 3 per month build rate for the A380 will kick in?

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