How Will Airbus’ U.S. Manufacturing Unit Impact Boeing?

Airbus will formally inaugurate its new U.S. manufacturing facility in Mobile, Alabama on September 14th, 2015. This will be Airbus’ fourth A320 family assembly line after France, Germany and China. The new production line will also impact Boeing as Airbus’ plant will further challenge Boeing’s position in the U.S. single-aisle aircrafts market. Also, Airbus will start delivering A320neos as early as 2015, two years before Boeing’s competing version, 737MAX is rolled out. Furthermore, Airbus’ entry into different markets outside of Europe gives it a flexibility to reduce the production rate, if the need be in future. It won’t be easy to do that in Europe due to strict labor laws and unions. On that note, we discuss below the impact of Airbus’ new production line on Boeing.

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