Airbus says it is “on track” towards its goal of generating $10 billion of annual services revenue within the next decade.
The European aircraft manufacturer reported $3.7 billion of services revenue in 2018, 14% higher than the previous year, and is confident about further growth following a busy Paris Air Show for its aftermarket products.
At the show, SriLankan Airlines became the latest carrier to sign up for Airbus’s Skywise Health Monitoring application, while Aircalin and China Express opted for the OEM’s component support via long-term Flight Hours Services (FHS) contracts.
Training also proved popular in Paris with Chilean carrier SKY Airlines and Spanish airline Volotea choosing Airbus’s pilot training.
Airbus is also working hard to consolidate A220 support within its wider services offering. Steps taken include a shift to Airbus tools and methodology (from those inherited from previous aircraft program owner Bombardier) to compute aircraft reliability and other performance metrics, and the provision of Airbus filed service representatives to support the in-service fleet.
Furthermore, A220 parts support will transfer to Satair and the Airbus FHS product, while Airbus maintenance teams will take over from Bombardier’s mobile repair teams. In the meantime, Airbus Canada and Bombardier maintenance staff will support customers until the Airbus teams are fully operational on the A220.
Another prong of Airbus’s services strategy is tie-ups with specialist MRO providers. For example, Airbus and AFI KLM E&M have agreed to a technical and commercial partnership to co-develop and manage a virtual engine run-up A320 maintenance PC-based training solution.
With so much going on, it is easy to forget that Airbus’s revenue target for services is only one-fifth of Boeing’s goal of $50 billion turnover by 2027.
Many believe that Boeing will struggle to achieve that, although a slew of acquisitions in the aftermarket means that the U.S. company is already well ahead of Airbus on services sales, with Boeing Global Services reporting $17 billion revenue in 2018.