Guillaume Faury (2:59)

Not to a major extent. We are not significantly exposed to this situation. Again, the main challenges we have are really on the delivery of aircraft, not on the certification of them we have recently certified. I mean last year, the XLR that's behind us. And the accelerate, the A321 accelerator is a great airplane that is now in service, that's behind us. And the next certification moving forward will be for the A350 freighter. But that's not today a short term bottleneck. We have to start flying with the aircraft. That will be the case in 2026. So certification is for later. We plan enter into service in 2027. So we hope in the meantime we will be able to restart or to have appropriate and efficient certification work with the faa, the primary certification authorities, easa. And we are currently working with EASA for preparing the certification file of the.

Nathan Hager (4:02)

350 freighter with regards to your operations here in the United States. Whether it has to do with the certification, whether it has to do with the shutdown or the broader issues. What are the deliveries, the timeline for deliveries coming out of the plant in Alabama?

Guillaume Faury (4:20)

Well, Alabama is one of our production sites. You know that for the A 320 family, we are now relying on Mobile in in the US in Alabama, in Toulouse and Hamburg in Europe, and in on changing in China for Mobile. We have recently inaugurated the second final assembly line for the 320. So we are clearly ramping up proportionately more in the US than in the rest of the world. And we have an A220 final assembly line. So Mobile, Alabama will soon become the fourth largest production site of commercial aircraft in the world. And it's a neighbor site in the US but basically we're ramping up a320 globally towards the right 75. And Mobile, Alabama will take its share.

Podcast Host / Interviewer (5:09)

And you mentioned the A220. When it comes to your production target, you actually lowered that as well. And I would love a little bit more detail on what led to that decision and when, you know, we might see some of these supply chain challenges that you're dealing with beyond snarl when it comes specifically to that body.

Guillaume Faury (5:27)

I like to to highlight the fact that we are not reducing production, we are reducing the speed of ramp up on the A220, we are actually doubling production roughly within two years from 24 to 26. And we have decided to go from what we were anticipating for next year that was rate 14 to actually rate 12. So moving up from rate 6 a few quarters ago, few years ago to the right 12, we are on that trajectory. Things are moving forward quite well in 2025, but right 12 is a challenging target. We have to integrate as well the work packages from spirit on the 220, the wings and other smaller work packages. So we have a lot on our plate. We are also introducing progressively engine improvements to to improve the durability of the engine for customers. So a lot of work on the 220, very fast and steep ramp up and we think that's good enough in terms of quantity of work and challenges moving from 25 to 26.

Nathan Hager (6:30)

I have to ask you about the defense business. Obviously that was a bit of a boost for you in the most recent period. Guillaume, is this a long term story or a one off?

Guillaume Faury (6:40)

It's a midterm story for sure. Maybe a long term one as well. You know that Europe has relied on the United States for a very long time when it comes to security of Europe and we are now in different times. Europe is really ramping up in its ability to secure itself, to defend itself, which means significant increase in defence budgets for the main countries of Europe and the NATO members in Europe. So from that perspective, it's a mid term or even long term perspective. And on the short term it comes with orders for more equipment, for development of new ones. And indeed we have a tailwind of when it comes to our numbers and our growth coming from defense against that backdrop.

Podcast Host / Interviewer (7:25)

And we should also talk about your your ambitions when it comes to space as well. And to compete against Elon Musk's Space X. I know that you're merging some of your operation with regional peers, trying to create a regional venture. That project expected to be running in 2027. Guillaume, would you anticipate though you might run into any sort of regulatory challenges here or is Trans 2027 looking like a firm date?

Guillaume Faury (7:49)

Well, we just signed the memo on the above understanding with Dallas and Leonardo to create that European player that is able to or will be able to compete at scale on the global competitive landscape. So that's really good. We are not only willing to compete with with Space X and Starlink. Obviously that's a big player and a fast moving player, but we are serving many other needs, including defense and across the world that creates a company that has the potential to be very competitive, to serve the interest and the the needs of the European players and more global players. As I said, we have to go through the regulatory process to the antitrust. That's something that is now ahead of us. Well, I think Europe has moved forward as well, understanding that it needs to be able to compete globally.

Nathan Hager (8:45)

Yeah.

Guillaume Faury (8:45)

And we hope that we will be supported for what we're doing with we have to demonstrate compliance with the European regulations and other regulations. We're starting that work now.

Nathan Hager (8:54)

All right, Guillaume, really appreciate you taking time for us, the CEO of Airbus there. Guillaume, for on the heels of the earnings just out most recently, but a big focus right now on potential delivery.

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