Airbus may need state aid for its future aircraft project

Airbus could turn to state aid to continue the aircraft program that replaces the A320. Guillaume Faury, CEO of Airbus, stated that the company has the means for program development but might consider seeking support.

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In an interview with Financial Times, Faury mentioned that the company is working on two projects for future aircraft. One is the natural replacement for Airbus’s flagship, the A320, and the other is a hydrogen-powered aircraft with shorter range.

According to Faury, Airbus has the financial means for these programs due to its robust order book. However, he told the Financial Times, «We might need support.»

Ongoing Programs

Currently, Airbus is receiving research funds from European governments for developing new technologies for the aircraft that will succeed the A320. Speculations suggest this aircraft will enter service in the second half of the 2030s.

Additionally, the European manufacturer is working on a hydrogen-powered aircraft with a shorter range than the A320. Its tentative entry into service is set for 2035. Both projects are in the initial development phase, with no official launch by Airbus.

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Legal Issues

Airbus and Boeing have been in conflict for years over financial assistance from their respective governments. In 2021, both companies signed an agreement to end their trade disputes.

See also: End of the tariff war between Boeing and Airbus

The support mentioned by Faury could revive this conflict between the world’s two major aircraft manufacturers. In the signed agreement, both companies committed that future research and development funding would not harm the other party.

Since 2021, both Airbus and Boeing have been working on new developments to replace their flagship aircraft, the A320 and the 737.

Airbus’s Current Situation

Airbus is facing a decline in monthly deliveries, with 64 aircraft delivered in November, a 6% decrease from the same month in 2022. With one month left in the year, Airbus has delivered 623 aircraft, putting it 97 deliveries away from the company’s 2023 target of 720.

The challenge for Airbus in December is to increase deliveries by just over 40% to reach the annual goal. This task is not impossible, as the European manufacturer has averaged 93 aircraft delivered in December over the last three years. In the three years before the COVID-19 pandemic, Airbus achieved an average of 131 aircraft dispatched in December.