Page 14 - Flight International (January 2020)
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AIR TRANSPORT
                                             Stealthy 5GAT has
                                             ambitious targets
                                             Defence P16

        PROGRAMME JON HEMMERDINGER MONTREAL
        A220 gains lift under new ownership



        Airbus flags sales successes since adopting narrowbody as efforts towards cutting cost and boosting output continue

            ne year ago, Airbus execu-
        Otives in Canada laid out
        broad strokes of a plan to make
        the A220 a commercial success.
          Chief among the company’s
        goals: to boost A220 production,
        land sales with major airlines,
          reduce costs and, ultimately,
        make the aircraft profitable.
          Twelve months on, the pro-
        duction rate is up and several                                                       Air Canada received its first   Air Canada
        major airlines have signed signifi-                                                      -300 in December 2019
        cant sales agreements.
          However, the degree to which   “We are on the normal path of   Balducchi now says the air-  ed significant new orders – the
        the airframer has achieved cost   an aircraft programme at this   framer aims to reduce the A220’s   types of sales Bombardier so badly
        and profitability goals remains   stage,” he says.      costs by 20%, but declines to dis-  needed. The Airbus-led deals
        unclear. But Airbus Canada chief   In January 2019, six months   close more details or say whether     include: 60 A220-300s to Air
        executive Philippe Balducchi in-  after Airbus acquired the A220   the A220 is closer to profitability.  France-KLM, 70 A220-300s to Jet-
        sists the A220 programme is pro-  programme from Bombardier, Bal-  “We have been progressing on   Blue Airways, and 60 jets to former
        gressing as expected.       ducchi set out his A220 goals at a   the cost reduction. We have had   JetBlue founder David Neeleman’s
          “The journey to get the cost   media event in Montreal.  significant progress with some   US start-up, known as Moxy.
        down has started [and] is on [a]   He pledged to make the A220   suppliers. Some are still under
        good track,” Balducchi said at a   profitable and said his team had   discussion,” Balducchi says.  LEASE DEALS
        15 January event in Montreal   initiated a broad cost-cutting effort   Financials aside, the A220 pro-  Balducchi also notes that Airbus
        during which Air Canada un-  that included seeking concessions   gramme has gained momentum   has secured A220 commitments
        veiled its first A220-300. He adds   from suppliers. The team would   under Airbus. Since acquiring the   from major aircraft lessors Air
        that Airbus expects to achieve   also work to improve production   programme, then called the   Lease Corporation and Nordic
        more cost reductions “in the   efficiency, partly by adopting Air-  CSeries, from a struggling Bombar-  Aviation Capital.
        coming months and year”.    bus’s processes on the A220.  dier in mid-2018, Airbus has land-  At the time it was acquired by
                                                                                          Airbus, the programme had
                                                                                          logged some 406 orders, which
                                                                                          by the end of 2019 had risen by
        INTRODUCTION
        Carrier heralds arrival of aircraft that ‘almost did not make it’                 47% to 595 aircraft.
                                                                                            Airbus has made progress
        Air Canada revealed its first   new markets. It will allow us to   makes transatlantic passenger   boosting production, having de-
        Airbus A220-300 to reporters and     expand our already extensive   flights possible. But, due to op-  livered 48 A220s in 2019. By com-
        business partners on 15 January,   North American network and   erational limitations, Air Canada   parison, the Montreal site shipped
        the day before it placed the     support our global strategy.”  has no intention of seeking the   33 A220s in 2018 and 17 in 2017.
        Quebec-made twinjet into      Air Canada operated its first   extended twin-engine operations   Airbus also opened a second
          revenue service.          revenue A220 flight on 16 January   approvals needed for such   A220 assembly line in Mobile,
          Executives described the   between Montreal and Calgary.   flights, Galardo says.  Alabama, in 2018, which will de-
        A220’s introduction as a victory   In total, the carrier has ordered   Weight restrictions on transat-  liver its first aircraft this year.
        for Canadian industry, noting that   45 A220-300s, equipped with 137   lantic and transpacific flights   Balducchi declines to say how
        the Montreal-based airline is the   seats in a two-class layout. It will   would significantly limit passen-  many A220s Airbus expects to
        first carrier in the country to   use them partly to replace 14   ger counts – perhaps to as few as   produce in 2020, but notes that by
          acquire the small narrowbody.   Embraer 190s scheduled for   40 – effectively making transoce-  mid-decade it expects to build 14
          They also insist the A220 will     divestiture by year-end.   anic A220 flights a “luxury niche”   per month: 10 in Montreal and
        help transform Air Canada’s   Powered by Pratt & Whitney   product, he says.      four in Mobile.
          network by driving down costs   PW1500G geared turbofans, the   Rovinescu calls the A220 “a   Balducchi insists supply chain
        and enabling it to launch   A220-300s will burn 20% less fuel   product of innovation, of risk, of   issues are no longer stifling Air-
          previously untenable routes.  per seat than the E190s, says Air   disrupting the market, of staying   bus’s ability to get A220s off the
          “The arrival of a new aircraft is   Canada vice-president of   power” – a nod to the many strug-  assembly line. “Right now we are
        always a major event for an air-    network planning Mark Galardo.  gles, financial and legal, that the   following a normal, pretty aggres-
        line… The A220, especially so,”   “This aircraft fits Air Canada’s   original manufacturer Bombardier   sive ramp-up,” Balducchi says.
        says Air Canada chief executive   needs almost perfectly,” he says.  faced when developing the twin-  “There is nothing holding us
        Calin Rovinescu. “The capacity   The A220-300’s 3,350nm   jet. “The aircraft programme al-  back… It is a normal part of ma-
        and range of the A220 will open   (6,200km) range theoretically   most did not make it,” he says. ■  turing [the] industrial system.” ■

        flightglobal.com                                                        28 January-3 February 2020  |  Flight International  |  15
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