Chief Executive Officer, Airbus SE
Airbus CEO Guillaume Faury Talks Next-Gen Single-Aisle Aircraft | Bloomberg Talks
Airbus CEO Guillaume Faury says the company aims to launch the next generation of single aisle aircraft in 2030 with entry into service in the second part of the decade, while speaking to BTV's Guy Johnson at the Farnborough International Air Show on Bloomberg Open Interest. Faury also says that aircraft demand remains strong and that the conflict in the Middle East is increasing demand for fuel-efficient aircraft, and reaffirmed that Airbus would get to rate 75.
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About Guillaume Faury
Guillaume Faury, CEO of Airbus, stated at the Farnborough International Air Show that the company aims to launch its next-generation single-aisle aircraft in 2030, with entry into service in the second part of the following decade. He said the aircraft would offer a fuel burn benefit of around 25%. Faury noted that aircraft demand remains strong, with a backlog of more than 9,200 aircraft, and that the conflict in the Middle East is increasing demand for fuel-efficient aircraft due to high oil prices. He reaffirmed that Airbus would reach a production rate of 75 aircraft per month. Regarding defense, Faury commented that Europe wants to rearm and become more self-sufficient, which he said is also expected by the United States within NATO. He called for better collaboration on defense spending in Europe, stating that it is important for money to be "well spent in Europe" through partnerships.
Transcript (35 segments)
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Host0:00
Airbus continues to outpace Boeing in China. Fresh orders from Air China and Hainan Airlines worth about $18 billion add to the plane maker's momentum at this year's Farnborough Air Show. Bloomberg's Guy Johnson joins us now with the CEO of Airbus. Guy, take it away.
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Guy Johnson0:15
Thank you very much indeed. Yeah, Guillaume Faury is here. He is the CEO of Airbus. Nice to see you.
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Guillaume Faury0:21
Nice to see you.
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Guy Johnson0:22
How's it going? Is the demand story looking okay at the moment? I've got a golf war that's getting worse. I got an oil price that's at 90 bucks a barrel. Any sign at this show that consumers are starting to get a little bit more cautious again?
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Guillaume Faury0:34
Well, it's the first day of the show and it started very strongly. We still see a very strong demand for our products. We have a backlog of more than 9,200 aircraft and we continue to get fresh orders for our short distance aircraft and for the long range aircraft. The Middle East crisis is actually fueling some demand because price of oil is very high and fuel efficient aircraft are in more demand.
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Guy Johnson1:01
Do you like the economy right now? Do you get a sense that what we're seeing at the moment is sustainable? Or are you starting to get a little bit nervous?
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Guillaume Faury1:09
Well, it's a very complex economy. It's a very complex world, very fast changing, very unpredictable, but we have more visibility than others with the backlog we have, with a very strong demand for transport, for commercial aviation, and with defense. So, I think given the environment, we can't complain. We have quite a bit of visibility.
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Guy Johnson1:28
So, you got a really big backlog particularly of the narrow body aircraft. You'd like to produce more of them, but you're struggling. You've got well documented engine issues. You and I have joked in the past about building gliders. You'd like to produce a rate 75 but you probably can't. So what rate can you produce at? What are you doing right now?
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Guillaume Faury1:47
No, we have a plan to go to rate 75 and we are equipped. We have made the investment and we have the support from the supply chain to get there. So there is absolutely no doubt in my perspective that we'll get to rate 75. When we look at what we have achieved already in the first half of this year, we have increased by 15% compared to the first half of 2025. So we are progressing well. We are doing what we wanted to do and we keep targeting around 870 aircraft for 2026. That is very consistent with rate 75, close to rate 75, or at rate 75 for the end of next year.
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Guy Johnson2:25
Okay.
I understand somebody told me that tomorrow you're gonna have an investor day and you're going to give some pretty aggressive targets in terms of deliveries. If I assume that that is correct, that you are going to deliver those quite aggressive targets, do you think you're going to be through the Pratt & Whitney engine issues fairly soon? Like when do these issues, these supply chain issues, finally get resolved?
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Guillaume Faury2:46
Well, let's not think that the Pratt & Whitney situation means that we have supply chain issues everywhere. That's not the case. As I told you, we are ramping up. It's the case on all our programs. We have already given targets in terms of rates for the A320 rate 75, for the A350 rate 12, for the A330 rate 5, and for the A220 as well. So we are on the ramp up everywhere, but we are consistent, in line with our ramp up objectives for this year and we intend to continue to stay in line with our objectives, delivering to our customers.
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Guy Johnson3:21
Let's talk about the story that everybody's talking about here at Farnborough and that is when does the next generation of narrow body arrive. I spoke to your friend in Seattle a little bit earlier on. He told me that Boeing is probably looking at the back end of next decade. Guillaume, can you get there first? Can you get to the market first with the next generation of aircraft?
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Guillaume Faury3:42
Well, we want to be going to the market in the right timing when we're ready, when the technologies are ready. We have already said and we confirm that we want to launch the next generation single aisle in 2030 for an entry into service in the second part of the next decade. So that's a bit more than 10 years away, which in our time frame is almost tomorrow. So we're preparing the next generation of single aisle. It will come with a fuel burn benefit of around 25%, which is contributing to what we were discussing at the beginning.
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Guy Johnson4:19
Is that open fan rotor technology?
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Guillaume Faury4:21
We have to decide on a number of technologies. We are not at the point of deciding that; it will be the next couple of years. And indeed an important choice is whether we maintain the traditional geared turbofan or if we go for an open rotor which has better fuel efficiency but comes with other types of risks. So we are assessing those risks at the moment.
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Guy Johnson4:40
What do you think?
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Guillaume Faury4:41
We see. We have to be fact-based.
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Guy Johnson4:43
Okay, let's talk about jet fighters. Europe wants to produce a new generation of jet fighters. We have the FCAS program which you were part of, and we've got the GCAP program.
The FCAS program you're no longer part of. When do you join the GCAP program? When are you going to make that decision?
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Guillaume Faury4:58
Well, it's slightly more complex actually. We're still part of the future combat system that is more than a sixth generation plane. But indeed the sixth generation plane as it was structured at the beginning is no longer there. So we have to find a way forward to the next sixth generation fighter for Europe. At Airbus we want to continue to be part of it. Therefore, your question: but again FCAS is a broader thing, and the French president and the German chancellor have decided last week to continue to work together, for instance, on the network, on the so-called combat cloud that is so important for connecting the different things that will be flying in the air and in space. So FCAS is more than a plane, it's also a plane, and we have to find a way forward.
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Guy Johnson5:42
Still part of FCAS?
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Guillaume Faury5:43
Of course we are still part of FCAS.
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Guy Johnson5:46
So you will stay there? I'm seeing your good friend over at Leonardo tomorrow morning. Do you think he's talked about the fact that maybe you could join the GCAP program?
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Guillaume Faury5:56
Again, FCAS is a broader thing than the sixth generation fighter. We have to find a way forward for the sixth generation fighter. It's mostly the decision of governments to decide with whom they want to partner. We will serve that project anyway for Germany and Spain, as we are the industrial partner of Germany and Spain for the sixth generation fighter.
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Guy Johnson6:14
What do you think about can Europe rearm without the Americans?
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Guillaume Faury6:20
I don't think so. I think the Americans are allies of Europe. Europe wants to rearm. Europe wants to be more self-sufficient. And that's also what the Americans are expecting from Europe in NATO. And when it comes to the industry, we're supporting that effort. So, I think Europe is not saying that they will in the future do everything themselves in defense, but they want to be able to do more by themselves. And a company like Airbus is contributing to this effort.
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Guy Johnson6:46
The UK's got a new prime minister today. What do you think the message should be from this show, from the defense industry should be to that new to Andy Burnham, the UK prime minister? We wait and see. And we'll be discussing with the prime minister when the prime minister is appointed.
Okay. But do you think the UK, what are the priorities you think that he should be looking at?
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Guillaume Faury7:03
The priorities for the UK, I think when it comes to defense are similar to the priorities of Europe: better contribution to NATO, to the security of Europe, and the willingness and the ability to work through partnerships because defense is an industry that works at the right scale. And obviously Europe, the EU needs the UK and vice versa.
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Guy Johnson7:22
Do you think we can get 5% defense spending?
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Guillaume Faury7:25
Don't ask me, ask the governments.
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Guy Johnson7:27
I know, but you're the guy that's going to have to deliver some of that. Do you think
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Guillaume Faury7:30
I think it's really important that there is more money that comes to defense and that's obviously part of the going to 3.5% or 5%. I think it's important that the money is well spent. And well spent in Europe means working together, collaborating. So we're really calling for collaborations that work when it comes to defense.
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Guy Johnson7:47
It's been a great pleasure as always. Thank you very much indeed for your time here at Farnborough. Guillaume, for the CEO of Airbus.