Airbus said to boost A320 Neo production to meet demand

Airbus and its suppliers have agreed to lift the target production rate for its A320neo in response to strong demand for the narrow-body aircraft, according to people familiar with the matter. The European planemaker now aims to produce 63 jets a month by Q2 2019, up from a previous goal of 60, said the people. The company has previously said it could lift rates to as high as 70 a month, based on market demand, and was in talks with its supply chain. The company has faced pushback on rates predominantly from the plane’s two engine makers, CFM International and Pratt & Whitney, with both signalling that capacity is likely too stretched to meet the upper level target. Both turbine manufacturers have battled to meet production goals, with Pratt’s most recent engine-seal hiccup stalling deliveries until later this month. An Airbus spokesman declined to comment specifically on the rate increase but said the company is studying its options, and has a “strong backlog, which supports our ramp-up ambitions.”<br/>