Airbus invests $900 Million into A220 program

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The A220 program was partially acquired by Airbus in 2017 when they bought 50,01% from Bombardier. At the beginning of 2020, Bombardier exited the program completely and left Airbus with 75% and Quebec with 25% of the program.

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Those two parties have now come together to invest $1,2 Billion into Airbus Canada to build a new production line for the A220 program. This investment will protect 2,500 jobs in Mirabel, but will also create up to 500 new positions at Airbus Canada. This comes with the A220 rapidly gaining popularity since Airbus took over the program.
The A220 currently stands at over 600 orders and the trust of aviation giants such as ITA and Qantas has shown the potential of the aircraft in combination with other Airbus family aircraft.

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However, recent events have left something to be desired. In a growing number of cases, the A220 lost potential orders due to its limited availability. Potential investments by Southwest and Allegiant were prevented due to the output rate being too low. This situation has improved since Airbus opened the Mobile Production plant, but the A220 is still lacking behind other aircraft.

Airbus has now set the goal as 14 produced A220s per month by 2025. An increased production rate will drive down the individual unit cost for Airbus which will, in turn, help them to turn the A220 program profitable, which it hasn’t been since it was launched.

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Wishes for a stretched A220 by Air France, Air Baltic, and Luxair for example have shown that Airbus’ trust in the program can pay off once it’s profitable allowing for further models to be designed. Other developments such as A220-300s with auxiliary fuel tanks for Breeze Airways are underway at the moment already.

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Good news !

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what? SW was gonna take Airbus?

From what I understood they could take the A220 bit since the delivery wouldn’t be as quick as they want they went back to B737max. I could be wrong

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They considered the A220 as an 737-7 competitor, but eventually decided for the 737 due to availability and other reasons.

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