1. Airbus SE has delivered the first aircraft from its second A320 final assembly line in Tianjin, underscoring China’s growing role in the European aircraft-maker’s production network. The A320neo jet was handed over to China Eastern Airlines Corp. Ltd., a long-time customer and one of China’s “big three” state-owned airlines, less than a year after the second A320 assembly line began operations. This new facility is a key part of Airbus’s strategy to expand narrow-body aircraft production capacity and achieve a target of building 75 A320 family jets a month by the end of 2027, amid a post-pandemic surge in demand. [para. 1][para. 2][para. 3]
2. Airbus currently operates 10 final assembly lines for the A320 family worldwide, located in Tianjin, Toulouse, Hamburg, and Mobile. Erik Buschmann, Airbus’s global senior vice president and chief operating officer for China, told media that the second Tianjin line is crucial for the company’s expansion plans, as both Airbus and its major rival Boeing Co. face persistent capacity constraints. Together, they hold a combined backlog of over 15,000 unfulfilled orders. Data provided by Airbus showed a backlog of 9,368 unfulfilled orders as of the end of August, with the A320 family accounting for more than 80% of these orders, equating to 7,577 jets. [para. 5][para. 6][para. 7]
3. The decision to expand narrow-body production in China is primarily driven by local demand. Buschmann noted that China is Airbus’s largest single-country market, characterized by strong demand and competitiveness, with the aim of producing locally as many of the aircraft ordered by Chinese customers as possible. Airbus currently has more than 2,200 aircraft in service on the Chinese mainland, representing a market share of about 55%. According to a forecast, China will account for more than 20% of total global demand for new passenger jets over the next two decades. Between 2025 and 2045, the world will need approximately 42,000 new aircraft, including 8,830 for China—of which 7,480 will be single-aisle narrow-body jets—compared to 33,170 for the rest of the world. [para. 8][para. 9]
4. The second Tianjin assembly line is a natural progression given the foundation of the city’s first A320 assembly line and the presence of numerous local suppliers, with local support and the Chinese supply chain being key reasons for the capacity expansion. Since its launch in 2008, the first A320 line has assembled and delivered more than 800 aircraft. Chinese suppliers are increasingly integrating into Airbus’s production system, providing components that include titanium and aluminum alloys, rudders, seats, wing ribs, and passenger doors. Buschmann noted that the share of the Chinese supply chain has grown significantly over the past 10 to 15 years and continues to rise, and Airbus is very satisfied with the quality. [para. 10][para. 12][para. 13]
5. While the new line and Chinese supply chain boost capacity, achieving Airbus’s production targets requires synchronized expansion across the entire global supply chain. Airbus does not have a fixed localization rate target, as procurement is a continuous, global process. According to Buschmann, the biggest constraint is coordinating this global industrial system, which requires immense effort to mobilize for increased production. [para. 14][para. 15]
6. Meanwhile, Chinese aircraft manufacturer Commercial Aircraft Corp. of China Ltd. (COMAC) is catching up with Airbus by building its own local supply chain. Buschmann welcomed the competition, calling COMAC a highly respectable rival and adding that such competition is necessary to drive Airbus to continuously develop and improve. [para. 16]
AI generated, for reference only
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