January 9, 2020 / 4:54 PM / a month ago

Airbus boosts output at U.S. plant amid tariff dispute

The logo of Airbus is pictured at the aircraft builder's headquarters of Airbus in Colomiers near Toulouse, France, November 15, 2019. REUTERS/Regis Duvignau/File Photo

PARIS (Reuters) - Airbus will increase production of A320-family jets at its Mobile, Alabama, plant to seven a month by the beginning of 2021, adding 275 jobs, the European planemaker said on Thursday.

Airbus currently produces close to six single-aisle jets a month at the plant and expects to reach that level in the next few weeks.

The increase comes as Airbus faces U.S. tariffs on aircraft assembled in Europe in a dispute over aircraft subsidies. Aircraft assembled at its U.S. plant and delivered to U.S. airlines are currently exempt from the 10% duties.

Airbus has previously said it envisages total capacity of eight aircraft a month in Mobile, where it began assembling aircraft from sections shipped from Europe in 2015.

Airbus reiterated on Thursday it aims to increase overall A320-family production to 63 a month in 2021.

It has begun producing the smaller A220 aircraft in Mobile and expects to make the first delivery in the third quarter, rising to four a month by the middle of the decade.

Reporting by Tim Hepher; editing by David Evans

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