AIRBUS SE — EXECUTIVE MEMO
"Scaling Production: Supply Chain and Manufacturing Excellence"
To: Executive Committee From: Chief Executive Officer Date: June 2030
SITUATION
Airbus has successfully scaled production to 950+ aircraft annually (up from 735 in 2025). Demand remains strong. Backlog exceeds 10,000 aircraft (4+ years of production).
Challenge: supply chain is the limiting factor. We can sell more aircraft but cannot manufacture them due to supplier capacity constraints.
CURRENT STATE
Deliveries: 950+ (vs. 735 in 2025) Backlog: 10,000+ aircraft Revenue: €71B (up 25% since 2025) Operating margin: 6.8% (up from 5.2%) Constraint: supply chain capacity
KEY DECISION
Supply Chain Scaling Strategy: - Option A: Invest aggressively in supplier relationships, help suppliers scale (€5B capex support) - Option B: Vertical integration (acquire suppliers, bring in-house) - Option C: Demand management (accept supply chain constraints)
Recommendation: Option A. Help suppliers scale capacity through partnerships, long-term commitments, and selective capital support. This is faster than vertical integration and more efficient than demand management.
Action: - €5B supplier support fund (capital, technology, training) - Target: scale production to 1,200+ annually by 2035 - Geographic diversification: expand suppliers in India, Southeast Asia
BOARD APPROVAL REQUIRED
- Supplier support program authorization (€5B)
- Geographic supplier diversification
- Production scaling targets (1,200+ annually by 2035)
Confidential board memo