Airbus CEO Guillaume Faury, at a new A321neo assembly line opening, urges EU and France to slash regulatory costs and boost competitiveness to avoid falling behind global rivals in the aerospace race.
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| Airbus CEO Guillaume Faury delivers a speech to employees during the inauguration of the new Airbus A320 /photo/AFP |
Airbus CEO Guillaume Faury called on France and the European Union to confront rising regulatory costs and declining industrial competitiveness on Monday, arguing that Europe risks losing ground to global rivals unless policymakers take more decisive action.
Speaking at the inauguration of a new A321neo final assembly line in Toulouse, Faury said Europe’s aerospace success depends not only on engineering excellence but also on an economic environment that enables manufacturers to compete with companies in the United States and China.
“Whenever I come back from the U.S. or China, I get very irritated with Europe because we are moving too slowly and are not sufficiently aware of the enormous challenges facing our industries,” Faury said during the ceremony attended by employees, government officials and industry representatives.
The new production line is designed to accelerate output of the A321neo, Airbus’ best-selling single-aisle aircraft that has become the backbone of the company’s commercial aviation business. Demand for the longer-range, fuel-efficient jet has surged as airlines increasingly favor narrowbody aircraft capable of serving medium-haul routes with lower operating costs.
The facility is the second A321neo assembly line established inside the Toulouse complex that once housed production of the A380 superjumbo, reflecting the industry’s dramatic shift away from very large aircraft toward more versatile single-aisle jets.
Airbus has been reconfiguring former widebody manufacturing space as it seeks to satisfy an order backlog stretching years into the future. Its chief rival, Boeing, is pursuing a similar strategy by expanding production capacity for the 737 MAX family as both manufacturers race to meet strong airline demand.
Faury said Europe’s competitiveness challenge extends well beyond labor costs, pointing to expensive energy prices and what he described as an excessive regulatory burden.
“The cost of labor is very high in France and Europe. Energy costs are significantly higher than in the United States or China, and the regulatory burden has become extremely heavy,” he said.
His remarks represented one of the strongest public appeals by the head of a major European industrial company for policymakers to prioritize competitiveness. Faury argued the issue should become a central topic during France’s next national election campaign, warning that Europe should avoid repeating mistakes made in other manufacturing sectors.
“We must not do to aviation what happened to the automobile industry,” he said. “For years everything appeared to be going well, but today the sector faces serious difficulties.”
French Transport Minister Philippe Tabarot welcomed the opening of the new production line, describing it as an important milestone that would strengthen Airbus’ manufacturing capabilities and help meet growing customer demand.
The inauguration comes as Airbus continues working to stabilize its global supply chain after years of disruption. Although shortages have gradually eased, the manufacturer still faces delays involving Pratt & Whitney engines, which have affected deliveries of certain aircraft.
Speaking to Reuters on the sidelines of the event, Faury said there had been “no change” regarding engine supply issues. Several completed aircraft remained parked near the Toulouse facility awaiting powerplants before they can be delivered to customers.
The newly opened 490-meter assembly line completes Airbus’ global network of 10 production lines capable of building the A321neo, the most profitable variant of the A320 family. Two additional production lines in Toulouse remain dedicated to assembling the smaller A320 and will continue operating for the foreseeable future.
Beyond France, Airbus manufactures commercial aircraft in Germany, the United States and China, giving the company a broad international production footprint as it competes in the world’s largest aviation markets.
Despite persistent supply-chain constraints, Airbus remains committed to increasing narrowbody production from roughly 60 aircraft per month currently to between 70 and 75 by the end of 2027. The manufacturer expects output to stabilize at around 75 aircraft per month during 2028.
Boeing is also seeking to accelerate production as it continues recovering from recent industrial and safety challenges.
The U.S. manufacturer is currently increasing monthly 737 output toward 47 aircraft while evaluating a longer-term increase that could eventually lift production to as many as 70 jets per month.As both aerospace giants ramp up manufacturing to address record order books, Faury argued that Europe’s long-term industrial success will depend as much on policy reforms as technological innovation, saying competitive conditions must improve if the continent hopes to remain a global leader in commercial aviation