Oct. 19 - Airbus predicts it will double the $12 billion is currently spends on US procurement by 2020 as it gears up to build a new U.S. plant. Hayley Platt reports.
$24bln is today's daily digit in Europe - the amount of money Airbus predicts it will be spending in the US by 2020. Last year it paid $12bln to US suppliers of the parts and services it needs to build its planes. It's doubling that because it's gearing up to build a new plant in Mobile, Alabama. Airbus, which is part of the EADS group, is spending $600 million on the new plant - it will assemble Airbus' A320 and medium distance planes. Southern California is likely to be a big winner - the $1bln it currently spends is also likely to double. But Airbus executives say they'll have to compete for it with other states and countries. They calling for better educational institutions to bring on the skilled workers the aerospace industry will need. Airbus spends more than 40 percent of its procurement budget on U.S.-based suppliers. It predicts air travel will more than double over the next 20 years - to justify that $24bln procurement bill. Hayley Platt, Reuters