Airbus has announced that it will build a new assembly plant in Alabama where it will assembly its line of narrow body airplanes. The airplane manufacturer said it will employ about 1,000 workers at the plant which is expected to begin production in 2016-2017.
Airbus said it hopes to be able to roll out four planes a month by 2017, and that the plant will assemble its A319, A320 and A321; all of which compete against Boeing's 737 models.
"The decision to locate an assembly facility in the U.S. was more marketing and political than for sound business revenue purposes", says Jared Smith, an aviation industry expert.
Boeing has long complained that Aribus unfairly received subsidies from European countries, a violation of WTO rules according to Boeing. But Boeing is not without controversy, with Airbus charging the same thing against Boeing. The two have been embroiled in a long and costly legal battle over this issue for more than 10 years.
Boeing currently employs about 2,700 in Alabama for various aviation related jobs.