There has been quite  a lot of publicity over Airbus’ decision to build an A320 final assembly plant in Mobile, Alabama, the same location it planned to use for an A330 tanker conversion site.  Pro Boeing people decry the decision as silly and pro Airbus people see it as Airbus gaining on Boeing.

I see it as neither.  Airbus building A320s in the United States isn’t going to help it sell aircraft from the “made in the USA” perspective.  Airlines are businesses and its customers here in the US long since gave up caring whether or not they were on an Airbus or Boeing with aviation fans being the incredibly tiny exception.

It might help a tiny bit in that Airbus may be able to open some production slots for airlines that want aircraft sooner than later.  However, that could just as easily be realized from one or two airlines deferring or cancelling orders over the next year.

It does help Airbus with profits as these aircraft will be dollar denominated aircraft but we’re only talking about an initial production rate of 4 aircraft per month . . . not a lot to realize here.  And should Airbus need to slow production, guess who is likely to be the first to shut down?  Yes, Alabama.  Labor laws in that state will make it far easier for Airbus to shut down a US based plan than one in Europe.  Their plant in China is politically driven and therefore likely to stick around despite the fact that it, at best, operates at a break even point rather than as a profitable enterprise.

Is it treading on Boeing turf?  No, not really.  Boeing needs to focus on its customers and keep its eye on the ball when it comes to delivering aircraft on time.  Reacting to this move by Airbus is just silly.

Does Boeing need to build elsewhere?  Again, no, not really.  They have their production figured out and while it may prove to be smart one day to move some production off-shore, they have a handle on their needs at present and there is no driving need to search elsewhere.  Besides, they have moved their production “off shore”.  They started an assembly line in South Carolina.

I don’t think Airbus has made a mistake but I also don’t see this as giving them any real advantage in the marketplace and only a tiny lift on profits which Airbus could stand to realize.

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