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Airbus Set to Fulfil Aircraft Backlog, Leveraging Malaysia’s US$350 Mil Annual Supply Chain

KUALA LUMPUR: Airbus is on track to deliver a backlog of 400 commercial aircraft comprising single-aisle and wide-body models to Malaysia within the contractual schedule. According to Airbus Executive Vice President International, Wouter van Wersch, Airbus has a global backlog of 8,500 aircraft and plans to produce 770 aircraft of all types in 2024.

“At the same time, we are also working with our suppliers closely to mitigate and meet our scheduled wrap-up goals,” he said at a media roundtable with Airbus.

Airbus said aircraft production was cut by 40% from 863 units in 2019 due to the Covid-19 pandemic but has steadily risen since, with production levels at 566 aircraft in 2020, 611 in 2021, 661 in 2022 and 735 in 2023.

The plane manufacturer plans to ramp up production for its commercial aircraft, specifically a total of 14 for the A220 in 2026, 75 a month in 2027 for the A320 family and raise the production rate to 12 a month for the A350 passenger aircraft in 2028.

“The pandemic was a big interruption (for us). We reduced production by 40% but we are (now) working to ramp up and increase our production rates. So that’s very positive,” van Wersch said.

Demand has risen tremendously post-pandemic, with the recovery being driven by the Asia Pacific region, especially Malaysia, due to its strategic location in ASEAN.

“We have a large supplier base in (Malaysia). We work with 14 companies, including Composites Technology Research Malaysia (CTRM), Spirit Aerosystems Malaysia Sdn Bhd and SME Aerospace Sdn Bhd,” he said, adding that the Malaysian supply chain is valued at about US$350 million per year.

Currently, Airbus has over 280 commercial aircraft in service with Malaysian carriers, nearly 100 civil and military helicopters, 4 military transport aircraft and 2 satellites supporting national defence and development.

Airbus aims to build new partnerships in sustainability as it sees significant potential for Malaysia to be a key source of feedstock in the region to produce sustainable aviation fuel (SAF), van Wersch said.

“Current feedstocks being studied include sources such as algae oil and seaweed. We are also working on a wide range of projects in Malaysia, especially with the Aerospace Malaysia Innovation Centre to define potential opportunities in developing and enhancing decarbonisation,” he added.

The company is also taking the lead to ensure a sustainable future for the industry based on several pillars, including replacing older aircraft with the latest generation, increasing production and use of SAF as well as ultimately introducing new energy sources such as hydrogen.

— BERNAMA

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