Airbus Eyes Controlling A220 Jet Costs Amid Pricing Pressure From Suppliers: Report

Airbus SE EADSY reportedly plans to control the costs of its loss-making A220 jet while supporting its supply chain.

The company is trying to reduce the production costs of its smallest jet but is grappling with pricing pressure from suppliers in the broader industry, Reuters reported citing a statement from an interview with Airbus Canada CEO Benoit Schultz. 

The latest news follows Boeing Co BA CEO Dave Calhoun's recent statement at the Bernstein conference, where he reportedly said that the company's progress on resolving supply chain problems has been "frustratingly slow."

Related: Boeing's Frustrating Supply Chain Saga: From Progress to 'Surprise Issues'

The suppliers are trying to pass higher raw materials and labor costs to Airbus. The A220 jet is produced both in the Canadian province of Quebec and in Mobile, Alabama, the report mentioned.

"Cost optimization on a program never stops. I'm not going to pretend that this is going to stop on the A220," Schultz told Reuters on the sidelines of the Paris Airshow.

"But quality cannot come at the cost of compromising the efficiency of the aircraft on the cost side," Schultz added.

Also Read: It's Official - Airbus Confirms 500 A320 Family Aircraft Order From IndiGo

Price Action: EADSY shares closed down by 1.22% to $35.52 on Wednesday.