Airbus Urges A320 Suppliers to Slash Prices by 10% to Boost Sales

Europe’s giant aircraft manufacturer, Airbus, has asked suppliers on its A320 jet programme to slash prices by at least 10 per cent by 2019.

This move is expected to make the company’s fast selling plane more competitive, three people familiar with the matter said.

Airbus’ cuts are one part of an internal efficiency program called SCOPe+ that also seeks savings through a close look at procurement.

Airbus has told suppliers that the prospect of increased volumes and a longer lifespan for its best-selling jet, which has enjoyed a surge in sales due to an important makeover, means it is time to “review all options” in its supply chain.

The aircraft manufacturer is also looking at further shifting its business model to allow airlines less choice over accessories that they previously ordered direct, known as Buyer Furnished Equipment.

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By 9jatravel / Administrator, bbp_keymaster

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on Sep 29, 2015

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