Airbus's decision to cut output of its best-selling jet by a third amid coronavirus marks a huge shift for the European planemaker, which has enjoyed virtually unbroken growth since it began competing toe-to-toe with Boeing almost 20 years ago.
But with all but a handful of airlines shunning deliveries as they hoard cash to survive the crisis, several industry officials and economists suggested the rate may be optimistic. "It is a first step," said Rob Morris, chief consultant at UK-based Ascend by Cirium, adding more reductions could be needed because of a large potential jet surplus.
On Wednesday, Airbus was forced by the scale of the crisis to act as Boeing's 737 MAX remained grounded for safety reasons - having also played an unplanned role in curtailing supply that one source likened to a"spent shock-absorber". According to Ascend by Cirium, the new Airbus target assumes every plane delivered this year will replace an older one being taken out of service. That suggests borrowing some demand from future years when some of those jets were due to be retired.
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