Bloomberg Audio Studios, podcasts, radio news. We do want to stay in the transportation space and take a look at the European planemaker air Bus, the world's largest plane maker, the reported second quarter earning earlier today, and the big concern was the big cash burn I had a chance to catch up with the CEO of the air Bus earlier today, Keonfoi. Here's what he had to say.
What we see in the first half of the euro is a number of delivery that is at three hundred and six. But we have also to have in mind that we have sixty aircraft sitting on the ground fully finished but with engines missing.
We call them gliders.
So if you look at what we've been able to produce, including the gliders, actually we are mostly on track with.
What we expected to do in the first half.
So we count on engine makers mainly CFM and to a smaller extent PRAT to recover on their engine deliveries to Airbus, so we can be back on track with a number of deliveries. So actually the negative free can show that we have recorded for the first half reflects mainly those missing deliveries and engine missing leading to aircraft on the ground, although we have confirmed our guidance because we believe we will get those engines and we'll be back to where we need to be.
Are the delays in getting those engines? Is that related to labor issues or is that more for parts and just some hold ups in the supply chain.
Well, that's more the latter.
Actually, these are more short term issues that we are generated in the first half of the year. When we look at the CFM situation, ge faced industrial difficulties in the beginning of the year. They delivered their course the hot section of the engines late to the other partner, which is and then Suffa faced a strike seven week strike that impacted very significantly the ability to deliver home time.
They are recovering now, so it's really a timing issue facing industrial challenges and we believe they are in the situation now to deliver us back to normality till the end of this year.
So that's the outproof for the next part of the year.
With regards to the backlog of orders, I am curious as to what adjustments, if any, you have had to make in light of some of the lord demand coming out of the US, the restructuring of the order book over with as well as a few other customers that at least for right now, might be on the sidelines.
Actually, what we face at Albus is a very high level of demand.
Overall.
We have by far more demand than the ability to supply. We have a very strong backlock, the biggest backlog in the industry, and this backlog keeps going up, keeps growing, So we are not looking at it as a risk for our business moving forward. The other global demand keeps growing and we are doing our very best to ramp up to serve that demand.
How manear is that? And more importantly, Gil, there's a big question here about whether some of your customers are actually asking for an acceleration and delivery of their order book.
Well, actually most of them, if not all of them, are asking for an acceleration in the delivery. As I said earlier, we are held back by the ability of engines. We are ramping up on the eight three twenty family, which is the bulk of what we do, up to a production rate, a monthly production rate of seventy five aircraft a month by twenty twenty seven, that will be the highest ever achieved for a commercial aircraft. So that's
the challenge we have in front of us. It's a good challenge because it reflects the strong demand we have for our products.
You gave guidance and for investors here that explicitly did not take into account the framework of a deal between the United States and the European Union. When do you think you'll have a little bit more confident of factoring in that trade deal into your guidance.
Well, that's an important question to us.
We had the news over the weekend of the agreement and the fact that civil aviation will be back to the so called zero four zero meaning nor taris. That's something we have enjoyed since nineteen seventy nine and drives the success of this industry. We need something papered out and implemented. We need an agreement in forced as soon as possible to be able to be back to normal operations.
That's something important to us. But we welcome the agreement.
We hope it's going to be inforced as soon as possible, and iddly more a matter of weeks than a matter of months.
Kay on Bori, they're the CEO of the world's largest plane maker, air Bus. They reported earning a little bit earlier in the day. The shares over there in France I fell slightly in the cash session, and their adr here in the US a little bit more than that