Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: And pleased to say that joining us now is the
Speaker 2: Airbus CFO Thomas Hopeford. Tomas, thank you so much for
Speaker 2: joining us now. As Nina said, we'll get to some
Speaker 2: of those risks coming up, but we have to start
Speaker 2: with the earnings here and now some concern there on
Speaker 2: your deliveries. How far away are we from supply chain
Speaker 2: snags being resolved in getting anywhere near back to the
Speaker 2: peak of twenty nineteen.
Speaker 3: Well, I would say we're getting close to it. So
Speaker 3: first of all, I think the good news is we
Speaker 3: had a delivery target of seven hundred and seventy planes
Speaker 3: for twenty twenty four.
Speaker 4: We got very very close to it with.
Speaker 3: Seven hundred and sixty six, So that shows we were
Speaker 3: able to deliver on what we had promised for twenty
Speaker 3: twenty four. And you said it, we have a delivery
Speaker 3: target of around eight hundred twenty planes for twenty five,
Speaker 3: so that is an uplift of over twenty planes. But
Speaker 3: more importantly, it's fully in line with the trajectory that
Speaker 3: we've given ourselves. Also for the year to come, we
Speaker 3: want to go to a monthly production rate of seventy
Speaker 3: five aircraft for our best selling A three twenty model,
Speaker 3: and we're in on the trajectory to achieve that.
Speaker 4: Now to your.
Speaker 3: Question, supply chain definitely is still the limiting factor, and
Speaker 3: that is true for a number of items. Maybe engines
Speaker 3: is the most prominent one, but it really goes far
Speaker 3: beyond that. It's also cabin, interior, aerostructures, et cetera, et cetera.
Speaker 3: And therefore, yes, we're very, very focused to be super
Speaker 3: close to our Tier one but also Tier two and
Speaker 3: Tier three suppliers to support them and detect if there's
Speaker 3: any issues that we can resolve with them together. And therefore, yes,
Speaker 3: that is clearly what we're absolutely focused on to make
Speaker 3: sure that the vamp up is really happening.
Speaker 1: Thomas, you delivered about one hundred and fifty aircraft to
Speaker 1: the US last year. We're wondering, if you're looking at
Speaker 1: what we're hearing from the White House every day from
Speaker 1: Donald Trump, what are your thoughts on airbus level of
Speaker 1: preparation for potential terriffs and also what are the scenarios
Speaker 1: that you're working with as you're trying to prepare for
Speaker 1: such an environment.
Speaker 3: Yes, I think I think clearly, it's quite difficult to
Speaker 3: prepare for a concrete scenario. But I think part of
Speaker 3: the answer is to remind you that we have a
Speaker 3: production site in Mobile, Alabama. We've got over five thousand
Speaker 3: people in our US team, and we're extremely proud of
Speaker 3: that team. So we're delivering out of the United States
Speaker 3: into the US from our Mobile site, and we're not
Speaker 3: only producing the A three twenty, but also the A
Speaker 3: two twenty at that site. So therefore, I would say
Speaker 3: the global footprint that we have with a very very
Speaker 3: strong presence in the United States that we've built over
Speaker 3: the recent years, is already part of the answer. But
Speaker 3: it's true, Nina, if you think about teriffs for the industry,
Speaker 3: it will have a negative impact in our view, because
Speaker 3: the entire aerospace industry is a global industry. It has
Speaker 3: a very global, highly integrated supply chain that is in
Speaker 3: the phase of ramping up, and therefore tariffs would certainly
Speaker 3: be on the one hand and negative for the industry,
Speaker 3: but we also think that in the end it will
Speaker 3: affect negatively our customers. So ultimately the tariffs, it is
Speaker 3: the airlines that will have to pay for it, and
Speaker 3: therefore it would be a double negative in our.
Speaker 4: View in terms of level of preparedness.
Speaker 3: I think we've done a lot in the past through
Speaker 3: our footprint and we're waiting for the exact scenario that
Speaker 3: will then finally play out.
Speaker 1: Could you expand the existing facility that you have in
Speaker 1: the US in order to potentially produce more aircraft here
Speaker 1: in the US. And has Airbus been in touch with
Speaker 1: the Trump administration at all?
Speaker 3: I think we're looking forward, of course to work with
Speaker 3: the administration. That question on whether we're expanding really depends
Speaker 3: on the exact regime that will then be be specified
Speaker 3: and decided. As I said, it's a highly complex and
Speaker 3: integrated supply chain, also with parts coming in from Canada
Speaker 3: for example in our mobile site, So the effects really
Speaker 3: go both ways, and the question of whether it makes
Speaker 3: sense to expand it or in other ways rebalance our
Speaker 3: production really depends on what finally is decided in terms
Speaker 3: of the terriff regime.
Speaker 2: Tomas, just quickly there. I want to fall up on
Speaker 2: what Nina said. Have you spoken to the Trump administration
Speaker 2: you or the rest of the team in trying to
Speaker 2: work out any sort of exemptions or deals.
Speaker 3: No, I think we're not working specifically on exemptions for Airbus.
Speaker 3: We're absolutely respecting whatever will be taken in terms of decision.
Speaker 3: We're in contact, but quite frankly, I think it's really
Speaker 3: the US administration who has to come to a decision,
Speaker 3: but clearly making our point that in our view it's
Speaker 3: not about Airbus only, but the entire industry would not
Speaker 3: be positively affected through terraffs TAMAS.
Speaker 2: The other thing this industry has to contend with, and you,
Speaker 2: especially sitting in the heart of Europe, is what it
Speaker 2: means for this new world of European defense, one in
Speaker 2: which Donald Trump calls Voladimir Zelensky a dictator and Europe
Speaker 2: feels more on its own when it comes to defense.
Speaker 2: I know you've had had some snams when it comes
Speaker 2: to some of your military aircrafts, but do you see
Speaker 2: more demand? Will your defense business be growing in Europe
Speaker 2: as a result of this geopolitical moment?
Speaker 4: I think the clear answer is yes.
Speaker 3: If you look at the order intake in our defense business,
Speaker 3: we have had a record order intake in twenty twenty
Speaker 3: four with sixteen point eight billion, and it's actually the
Speaker 3: second year in a row that we have a record
Speaker 3: in terms of order intake, So it shows that we're
Speaker 3: well positioned with our products with a eurofighter in our
Speaker 3: military air business, but also with our satellites and other
Speaker 3: military devices that we produce. So therefore we stand ready
Speaker 3: to step up in what I think is a clear
Speaker 3: need for Europe to be more self sustained in a
Speaker 3: sovereign ability and therefore Airbus clearly is prepared.
Speaker 4: To help here.
Speaker 3: And we're also seeing good science in terms of the
Speaker 3: order intake that we had in twenty twenty four.
Speaker 1: Thomas, you're a German working at a large European company
Speaker 1: that has a US competitor.
Speaker 4: What's your outlook for.
Speaker 1: The European economy and also for Germany where we'll have
Speaker 1: elections this Sunday.
Speaker 3: Well, I think it would clearly be helpful for Europe
Speaker 3: as a whole if we will have more stability. I
Speaker 3: think that's true for Germany, where I think it is
Speaker 3: about time that we have clarity about who will be
Speaker 3: the new government, but also more stability in other countries
Speaker 3: in Europe would certainly be helpful. I think we as
Speaker 3: an industry are ready to support many of the proposals.
Speaker 4: That have been made.
Speaker 3: I refer, for example, to the Dragon report, which has
Speaker 3: a special chapter not only in defense but also on space,
Speaker 3: calling for more consolidation not only on the supply side
Speaker 3: in Europe but also on the demand side. So I
Speaker 3: would say the proposals also from that perspective around the table,
Speaker 3: we clearly support it and it would be good if
Speaker 3: now there is also the political will and power to
Speaker 3: put some of these things now into practice.
Speaker 2: Jama's just quickly here and look, we've been hinting at it,
Speaker 2: but it feels like a moment of step change for Europe,
Speaker 2: especially with transatlantic relationships, both from an economic point of
Speaker 2: view with tariffs and geopolitical you having been at the
Speaker 2: helm of industry in Europe for some time now, is
Speaker 2: Erope prepared for this moment?
Speaker 3: Well, I think it's hard to say whether it is prepared.
Speaker 3: I think Europe has the ingredients that it needs, both
Speaker 3: from an industrial site, but also of course from the
Speaker 3: let's say, the GDP power that we have in order
Speaker 3: to step up. What I think it takes is a
Speaker 3: political will and the ability to now implement those steps.
Speaker 4: To your question, is it prepared, I think it is
Speaker 4: fair to.
Speaker 3: Say that what happened in the recent past is a
Speaker 3: clear wake up call, and I'm hopeful that Europe will
Speaker 3: act on that call. The level of preparedness I think
Speaker 3: could probably be better, but I do see promising signs
Speaker 3: that Europe is taking up the challenge.
Speaker 2: Tomas, thank you so much, time, so much for spending
Speaker 2: your time with us this morning. We really appreciate it.
Speaker 2: That is the Airbus CFO to us Hofer and Bloomberg's
Speaker 2: Nina Trentman