Airbus eyes bigger A350 in race to shape aviation’s next era

Airbus is moving closer to a decision on whether to develop a larger version of its A350 wide-body jet, a move that could create one of the world’s biggest passenger aircraft and put Boeing’s delayed 777X under direct competitive pressure.

The European planemaker is considering lengthening the A350 fuselage to accommodate more passengers, according to Tufan Erginbilgic, chief executive of Rolls-Royce, the aircraft’s exclusive engine supplier. A decision could come within the next 12 months, potentially allowing the aircraft to enter service in the early 2030s, CNBC writes.

The possible A350 expansion comes as Airbus and Boeing begin planning their next generation of commercial aircraft. However, both companies say their immediate priority remains delivering the planes already ordered by airlines, amid persistent production and supply-chain challenges.

Boeing CEO Kelly Ortberg said July 20 that the company still needs “a couple more years” to put its finances in a position to support a new commercial aircraft program.

“We think about three things that have to happen,” Ortberg told CNBC’s Phil LeBeau. “First of all, we have to be ready, and part of that is getting our financial house in order, and we’re working on that. It’s going to take a couple more years to get where we want to be.”

Ortberg said the technology must also be ready and that airlines must be prepared to move beyond Boeing’s current aircraft lineup.

“The market’s got to be ready. Right now, the customers are telling me, ‘focus on your existing product line, we really want to see better maturity of the existing product line before we move to a new airplane.’”

Airbus, meanwhile, has already outlined a timetable for its next-generation single-aisle aircraft. CEO Guillaume Faury said the company is targeting a program launch around 2030, with entry into service in the second half of the 2030s.

“We’re a long-term industry,” Faury said. “It takes time to prepare the technologies, to launch a program for the product, for the production system, [to] enter into service with the certification, do the ramp up.”

The two manufacturers are currently dealing with significant production pressures. Boeing is working to increase output of its 737 Max while recovering from a series of manufacturing and quality problems. Airbus has also adjusted production plans because of engine availability issues, particularly involving Pratt & Whitney, although Faury said the situation had stabilized.

For investors, the immediate focus remains on execution. Boeing must increase production of the 737 Max and 787, complete certification of the Max 7 and Max 10, improve margins and generate cash. Airbus is under pressure to provide a clearer path toward its A320 and A350 production targets.

Airbus has a backlog of more than 9,000 aircraft, while demand continues to exceed available supply. Its A320 family remains the main driver of deliveries and future earnings growth.

At Boeing, the 737 Max program remains central. Certification work on the Max 7 and Max 10 was reported to be 95% and 98% complete, respectively, while the Max 10 had 1,533 aircraft on order.

Boeing is also investing about $1 billion in a fourth 737 Max production line in Everett, Washington.

As Airbus and Boeing plan aircraft that could define commercial aviation for decades, airlines continue expanding with existing models. The competition over the next generation of narrow-body aircraft may ultimately reshape the industry, but for now, both manufacturers face the same challenge: delivering the planes they have already promised.

By Sabina Mammadli