Airbus plan for new A321 jet plant in France

Airbus has shelved plans to add a French assembly line for its A321neo just 10 weeks after the expansion was launched, as the coronavirus fallout spreads to its best-selling jetliner.

The move heralds the start of a politically sensitive drive to cut investment and overheads after eight years of production growth.

Airbus announced plans for an extra assembly line in January when its problem was meeting record demand for the A321neo from its site in Hamburg, Germany, which has suffered production bottlenecks.

That would redeploy jobs threatened by the imminent demise of the A380, the world's largest jetliner whose popularity with airlines has slumped in favour of smaller models.

Although the plan remains on the table, the impact of the coronavirus pandemic now means Airbus must cut output of single-aisle jets such as the A321 by a third, sources said.

"Our plans for an A321 line in Toulouse are paused, on hold," an Airbus spokesman confirmed. "When we see rates going up again, we will reconnect to the plans."

That leaves a question mark hanging over its massive Lagardere A380 production plant in Toulouse, where the last superjumbo is due to roll off the line in coming months. French unions said they would fight for the plant.