Alexander Cornwell and Tim Hepher

DUBAI, (Reuters) – A flurry in plane orders received at Dubai Airshow added weight to Airbus’ hopes to boost output. But, Airbus’ top executive indicated that it isn’t yet ready for the plunge.

Airbus SE, (OTC:), secured 265 orders from the Middle East Event. It is now a clear lead over Boeing (NYSE:). This year Boeing had been in command as sales of the 737 MAX recovered after a safety crisis.

Another 139 provisional orders raised Airbus’ Dubai count to over 400, and Boeing received a firm order of 72 MAX.

Airbus’ CEO Guillaume Faury announced that Airbus had agreed to more than 65 single-aisle planes per month in 2025. That is up from 45 per quarter.

Airbus asked suppliers to look at rates for 70 and 75 in the early 2024s, but did not make a decision.

Some suppliers have criticized the plans and worried that recovery from the pandemic is slow.

Faury stated that they are currently in the “phase of assessing need” interview with Reuters this week.

“What took place in Dubai (In Dubai) was important because, together with the other potential deals or prospects to follow, it gives substance…evidence that the rate of 70 and 75 we are seeing will last for many more years.”

According to him, the inside-out view of demand is based upon Airbus’ orders as well as its assumptions and discussions with airlines. It matches the market outlooks for Airbus published at the event.

Not yet

Forecasts for the next 20 years are based on straddle category forecasts and cannot therefore be used as a way to estimate near-term model output. Faury stated that the most recent report was in line with the demand for A320-family jets of “maybe 70 to 75” per month during this decade.

Faury explained that “So, if these simulation tools, and those sensors remain as robust as in the past. We think 70, 75 seems reasonable but we are not yet there.”

According to industry sources, Airbus will make a decision in the middle of next-year to allow suppliers time to respond.

Faury indicated that he has received positive feedback from French and German supplier group groups in recent negotiations.

Some suppliers believe it will be more difficult. According to a senior industry source, “I think most people still believe that it will go bumpy.”

Airbus deliveries have fallen in the last three months partly due to problems in the supply chain.

Faury indicated that overall the burden of the supply chain has decreased due to the drop in demand for wide body jets.

He refused to comment on the recent dispute with engine manufacturers who opposed plans to increase monthly output of A320-family engines beyond 65 to make room for revenue on repairs to older planes, which could otherwise lead to early retirement.

Faury stated that he respects their concerns as well as the lessors’ and would make any decision “as a whole community”.

Airbus is worried that disputes about output plans could deter suppliers making the necessary investments to get to 65 per month. This would be roughly equivalent of pre-pandemic output.

“We will be 65. This is a decision. We’re executing it. Faury added that they haven’t decided any further.