Business

June 29, 2012

Airbus plans factory in Alabama

by Joshua Freed
Associated Press

European plane maker Airbus intends to build its first U.S. plant in Mobile, Alabama, a person with knowledge of the plans told The Associated Press.

Airbus will assemble its A320 jet there, according to the person, who requested anonymity because a public announcement has not been made. The A320 is a widely used plane flown by U.S. airlines including Delta and US Airways.

An Alabama plant would enable Airbus to produce planes squarely in the territory of archrival Boeing. It would likely mean lower production costs compared with Airbus’ European A320 production lines in Toulouse, France, and Hamburg, Germany. The company also makes A320s in China.

The plan was reported June 27 by The New York Times, citing anonymous sources who said that an announcement could come as soon as July 2.

Airbus has said it wants to expand, and that it favors a site in the Southern United States.

“We have made no secret of our hopes to expand our global footprint, including in the U.S., as we have a very strong market here,” said Airbus spokeswoman Mary Anne Greczyn, who added that no decision has been made by the company’s board.

An Alabama state legislator, speaking on condition of anonymity, said he’s been asked by state officials to be in Mobile July 2 for an industrial announcement involving an airline project.

Airbus is aiming to boost A320 production. The 150-seat plane is generally used on short- and medium-haul flights, and Airbus makes more of them than any of its other planes. They retail for $88 million, although discounts are common for big customers.

Similarly, Boeing is ramping up production of its 737, which competes directly with the A320. Both companies are putting new, more fuel-efficient engines on the planes, hoping to extend their appeal as airlines try to cut their fuel bills. Airbus made its new-engine decision earlier than Boeing and got a big jump on orders.

The U.S. is a growing market for Airbus. American Airlines ordered 260 A320s last year, and US Airways is buying them as well. However, Delta Air Lines went with Boeing 737s in a 100-jet order in August.

Airbus already has a facility in Mobile that employs about 230 people designing and installing interior items such as seats and cabin equipment for its big planes, the A330, the superjumbo A380, and its planned A350.

It has had its eye on possible U.S. expansion for several years. Mobile is where Airbus parent EADS planned to put its assembly line for an aerial refueling plane it wanted to build for the U.S. Air Force, before losing that long-running duel to Boeing in Feb. 2011. The tanker would have been based on the A330, a larger plane than the A320 slated to be built there now.

In March 2011, then-EADS CEO Louis Gallois said that if or when EADS made a move into the U.S., the South would be its favored destination. At the time he said possible locations were Alabama, Mississippi and Texas.

The plan by Airbus executives to open a plant in Alabama comes a few weeks after Fabrice Bregier took over as Airbus CEO on June 1. The CEO of EADS is now Tom Enders, who previously ran Airbus.

Mobile is already home to several aerospace companies, including ST Aerospace Mobile, Goodrich Aerospace and Star Aviation, and much of the business is based at the 1,650-acre Brookley Aeroplex.




All of this week's top headlines to your email every Friday.


 
 

 

Headlines December 19, 2014

News: SpaceX’s attempt to land rocket on floating barge postponed - It’s set to be one of the most groundbreaking moments in humanity’s six decades of space exploration. Obama signs $1.1 trillion spending bill into law - President Obama signed the $1.1 trillion federal spending measure into law Dec. 16, officially ending any threat of a government...
 
 

News Briefs December 19, 2014

Trial set for ex-Navy engineer in military secrets case A former Navy civilian engineer is scheduled to stand trial next summer on charges of trying to steal aircraft carrier schematics. Media outlets report that 35-year-old Mostafa Awwad of Yorktown, Va., pleaded not guilty Dec. 17 to two counts of attempted exportation of defense articles and...
 
 
Army photograph by C. Todd Lopez

Army to launch cruise missile-detecting aerostat at Aberdeen Proving Ground

Army photograph by C. Todd Lopez The Army plans to launch an aerostat, part of the “Joint Land Attack Cruise Missile Defense Elevated Netted Sensor,” in late December 2014. The JLENS aerostat will be tethered to the...
 

 
Air Force photograph by SrA. Jordan Castelan

AF delivers Iraqi F-16s for training in US

Air Force photograph by SrA. Jordan Castelan Iraqi air force captain Hama conducts preflight inspections while inside a new to service Iraqi F-16 Fighting Falcon Dec. 17, 2014, located at the nearby Tucson International Airport...
 
 
Air Force photograph by SSgt. Derek VanHorn

Short-notice: A new way to exercise

Air Force photograph by SSgt. Derek VanHorn Airmen from Kadena Air Base, Japan, prepare for an aeromedical evacuation exercise on a KC-135 Stratotanker Dec. 5, 2014, at Misawa Air Base, Japan. The operation was executed in supp...
 
 
Lockheed Martin photograph by Andy Wolfe

Japan, Australia to provide F-35 maintenance sites in Pacific region

Lockheed Martin photograph by Andy Wolfe An F-35C Lightning II joint strike fighter carrier variant prepares to launch from the aircraft carrier USS Nimitz in the Pacific Ocean, Nov. 6, 2014. Japan and Australia will be sharing...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>