Airbus bets small is beautiful as A220 chases post-COVID sales

Monthly jet production at Mirabel plant set at 3 and one in Alabama

Airbus SE is seeking to spur demand for its smallest jetliner by pitching the A220 model as a tool for cutting costs and trimming capacity in the post-coronavirus travel market.

The European company, which took control of the former Bombardier Inc. jet in 2018, is also promoting its ability to fulfil multiple roles spanning short hops between cities to longer trips on routes with limited demand, Antonio Da Costa, Airbus’s marketing chief for single-aisle planes, said in an interview.

“We can’t say we’re in a seller’s market, but we do see good prospects,” he said. “The A220 is well placed because it offers low operating costs, a flexible platform for long and short missions, and is building on a good market basis.”

Still, the company has put plans to boost production on hold given current volatility, he said, and will limit A220 output to three a month at the main Mirabel site in Canada and one in Mobile, Ala. Increases had been planned as part of moves to lift output at the plants to 10 and four a month respectively by the middle of the decade.

The A220 suffered a setback this week when Air Canada cancelled 12 of its 45 total orders and deferred 18 planes. At the same time, almost 100 per cent of the current A220 fleet has returned to service, a figure that’s ahead of other models, according to the executive.

“In a pandemic airlines go for the most efficient, lowest cost,” Da Costa said. “This was the aircraft of choice, it was flying around most of the time.”

While the focus is on securing deliveries of the 507 aircraft in the A220 backlog, Da Costa said Airbus is talking with airlines about new orders for the jet, which comes in two versions, one seating up to 120 people and the other as many as 150.