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<\/figure>\n\n\n\nMONTREAL (Reuters) – Europe’s Airbus is looking for a “significant double-digit” percentage reduction in costs for a recently acquired Canadian jet program, as it expands production capacity to cope with anticipated demand for the former Bombardier jet.<\/p>\n\n\n\n
Philippe Balducchi, head of an Airbus-led venture which took over production of the loss-making A220 last year, indicated the bulk of the reduction in costs would come from the supply chain as Airbus uses its greater clout in negotiations for parts.<\/p>\n\n\n\n
Other savings would come from more efficient operations as workers gain experience of building the lightweight 110-130-seat jet, whose deliveries doubled to 33 aircraft last year.<\/p>\n\n\n\n
But overall economies will go “way beyond” what Airbus can achieve internally on the assembly line, Balducchi said.<\/p>\n\n\n\n
“Our focus is to sell, ramp up (production) and reduce costs on the A220,” Rob Dewar, head of engineering and customer support, added during a media briefing on the jet, which was known as the CSeries until Airbus took control in July 2018.<\/p>\n\n\n\n
The A220 consortium, which also includes Bombardier and the Quebec government, is spending some $30 million to expand its Mirabel production plant outside Montreal and will break ground this week on a new assembly line in Alabama for U.S. airlines.<\/p>\n\n\n\n
Airbus meanwhile said the Canadian-developed A220 jet had won approval to fly up to three hours away from the nearest airport in the event of a shutdown of one of its two engines – a safety standard which underpins its use on longer-range routes.<\/p>\n\n\n\n
The green light has been given by Canada, while approvals in the United States and Europe are pending, Airbus officials said.<\/p>\n\n\n\n
The extended operations or ETOPS approval affects the number of routes the plane can fly over water or remote areas.<\/p>\n\n\n\n