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American dreamBy the middle of 2016, an Airbus aircraft will roll off the production line on American

soil for the first time. Martin Riversreports on the significance of this from Mobile, AL

News analysis

JetBlue Airways is lined up to receive the first

US-made Airbus aircraft, followed later in the

year by American Airlines. Both carriers have

ordered A321s, though Airbus's new $600 million

facility in Mobile, AL which opened amid much

fanfare on 14 September will also produce A319s

and A320s. Its output is due to reach four aircraft permonth by late 2017.

The opening of the new final assembly line and

delivery centre brings Airbus a step closer to its goal of

producing 60 narrowbodies per month up from the

present output of 42. Another facility in Tianjin, China,

already contributes four units to that quota, while the

majority of A320 Family jets start their life in either

Hamburg or Toulouse.

Airbus's new production line also carries benefits

in the form of lower costs and less stringent workers'

rights protection a useful bargaining chip for the

manufacturer as it sizes up with powerful trade unionsback in Europe.

Arguably the biggest advantage for Airbus, though,

is the ability to stamp its aircraft with a proverbial 'Made

in the USA' seal of approval. That endorsement should

resonate among American carriers and travellers,

deepening the company's footprint in the world's most

developed aviation market. Today, Airbus accounts for

just 19% of America's narrowbody fleet, compared withBoeing's 63%.

By setting up shop on the Gulf Coast, Airbus and its

250 Mobile-based employees are voicing a powerful

message about the manufacturer's aspirations and

identity within the US marketplace.

"Our commercial aircraft production in Mobile

signifies two things: that Airbus has become the first

truly global aircraft manufacturer; and that Airbus is

now also a truly American manufacturer," says Chief

Executive, Fabrice Brgier.

He describes the opening of the facility as an "historic

event for Airbus", explaining how "it enables us to growour already significant presence in America the largest

JetBlue will receive the first

US-made Airbus

(photo: Airbus)

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News analysis

single-aisle aircraft market in the world and to be

closer to our US customers and key supplier partners. At

the same time, the expanded industrial capacity gives us

more flexibility to increase production across Airbus to

meet global demand."

In addition to JetBlue and American Airlines, theMobile facility will be a boon for Airbus operators

such as Delta Air Lines, United Airlines, Virgin America,

Spirit Airlines, Air Canada, FedEx and UPS. More than

1,300 Airbus jets are currently operated by North

American carriers.

Speaking to journalists shortly before the opening of

the assembly line, Barry Eccleston, President of Airbus

Americas, estimated that the region will require 4,700

new narrowbodies over the next twenty years. By

extrapolating Airbus's existing order-book, he claimed

that this translates into demand for "well over 100 [A320

Family] aircraft a year just to feed the US alone. So youcan see very well that, even at four a month, the Mobile

facility is still only providing a small part of that large and

growing North American market."

Airbus says the assembly line could double output

with a relatively minimal capital outlay, noting that its

Honeywell-built power plant is capable of supporting

eight deliveries per month. Nonetheless, Eccleston

stopped short of committing to an imminent ramp-up.

The opening of an additional production line in

Hamburg subsequently announced in October has

already put the company on-track for its target of 60

global narrowbody deliveries per month by 2019.Sprawled over 53 acres, the Mobile facility consists

of a transhipment hangar; a final assembly line hangar;

a gauging canopy; a paint shop; and a delivery centre.

Major component assemblies destined for

the factory are constructed by Airbus in France,

Germany, Spain and the UK, before converging in

Hamburg and making the 21 day oceanic journey

to the Port of Mobile.

As well as allowing Airbus to compete with Boeingin its backyard, the new facility promises huge

economic benefits for the industrial city of Mobile. At

full production Airbus will employ around 1,000 people

at the plant, lifting Alabama's gross domestic product

by $409 million annually.

Mobile and Airbus first forged ties a decade ago

during the manufacturer's failed bid to supply aerial

refuelling tankers to the US Air Force. Despite initially

winning the $35 billion contract under a joint-venture

agreement with Northrop Grumman, Airbus lost the

commission in 2011 after Boeing mounted a successful

appeal. The US manufacturer is now due to deliver itsfirst KC-46 Pegasus tanker in 2017.

"When we lost the tanker deal, we found we had

made a great friend in Mobile and we were not giving

that up," Airbus Group Chief Executive, Tom Enders,

recalled. "We scratched our heads and thought, 'If not

military, maybe civil'."

The Toulouse-based manufacturer, however, is not

alone in seeking to globalise its production line. Just

one week after the opening of the Mobile facility,

Boeing announced its own plans to build a Boeing

737 completion centre in China. The smaller factory

due to be jointly operated with Comac, China'sstate-owned manufacturer will install interiors and

paint liveries, delivering narrowbodies to customers in

the Asian powerhouse.

VIPs present at the Airbus

US manufacturing facilitys

inauguration ceremony

(photo: Airbus)