According to an Airbus spokesperson, the demand for A321neo planes has been “much higher than we originally anticipated.” Initially, the A320 series of aircraft accounted for only 20% of Airbus (AIR/PA) business, but increased demand has pushed that number to 40%.
The fact is, in the shadow for Boeing’s (BA) 737 MAX issues, Airbus is being challenged by the increased demand for its single-aisle aircraft. Not only do they compete directly with Boeing’s beleaguered 737 Max, but they are also replacing aging and less efficient two-aisle aircraft.
One trend is increased demand for single-aisle aircraft on longer routes that had been flown by wider, more expensive two-aisle wide-body aircraft.
Sash Tusa, an analyst in London said, “The A321 matters because…it should be by far the highest-margin aircraft of the Airbus narrow-bodies.”
While Airbus facilities are being challenged to meet demand, the company is planning an additional production facility, perhaps collocated as part of the A380 superjumbo facility in Toulouse, France, especially since the A380 is no longer in production.