Airbus boosts production rate at Alabama assembly line

Jan 9, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

European plane manufacturer Airbus said it will boost production at its new assembly plant in Mobile, Alabama.

The airframer said it will produce seven A320s per month at the plant by the end of 2021, up from the current monthly rate of five.

“This increase in commercial aircraft production in Mobile is an exciting expansion of our significant industrial investment in the U.S., and it continues Airbus’ positive contribution to American aerospace,” Jeffrey Knittel, Airbus Americas’ CEO said in a Thursday statement announcing the increase.

Sign up for the free daily TPG newsletter for more airline news.

According to the manufacturer, the increased production rate, coupled with recruiting for the A220 manufacturing team there, will result in an additional 275 jobs in Mobile in the next year.

Airbus had long been the second-largest commercial airplane maker in the world, behind U.S. giant Boeing. But, with the ongoing grounding of Boeings 737 MAX fleet, the European company surpassed Boeing to claim the title for 2019.

Airbus’ Mobile facility opened in 2015, giving the European manufacturer the ability to assemble its A320 family jets in the U.S. as the European company looked to make inroads in the American market against the presence of homegrown giant Boeing. Airbus’ A220 assembly line in Mobile began operations over the summer, and the first U.S.-built version of the plane should be delivered to Delta in the third quarter of this year, according to Airbus.

Some industry analysts however, see the move as a way for Airbus to add to its political capital in the U.S., and as vehicle to avoid tariffs meant to hinder foreign plane makers in the American market.

“There are ways to defend yourself against antiglobaliztion measures, and this is one of them,” said Richard Aboulafia, a vice president of analysis focusing on aviation at Teal Group.

Featured photo by Luke Sharrett/Bloomberg via Getty Images

Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points


CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
  • Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Regular APR
15.99%-22.99% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.