Airbus jetmaking CEO sees early decision on higher A350 output

TOULOUSE, France, Oct 14 (Reuters) - Airbus AIR.PA plans to decide "sooner rather than later" on increased production capacity for its A350 wide-body jet, its commercial CEO Lars Wagner said, part of a trio of relatively near-term decisions for the planemaker as its rivalry with Boeing intensifies.

The world's largest planemaker is also actively studying launching bigger versions of the A350 as well as its smallest model, the loss-making A220, with decisions on both projects expected towards the beginning of a five-year planning period.

"The decision for an increased rate on the A350 is inevitable. We're going to do it because the market clearly demands more aircraft," Wagner told a news briefing.

"It's a big decision, so we need to bring it to the board of directors. But this is going to happen rather sooner than later."

Airbus has one assembly line for the carbon-fibre jet, designed to compete with Boeing's lightweight 787 and delayed 777X. The plant was designed to handle 12 to 13 jets a month. Going higher would need a new line and industrial system, Wagner said.

Separately, he said, there is "clearly demand" for a longer A350 with more seats, widely dubbed the A350-2000, and a bigger version of the roughly 130-seat A220, known as the A220-500.

The former MTU Aero Engines CEO, who took the helm of Airbus' largest division this year, declined to say whether Airbus might loosen Rolls-Royce's RR.L position as sole engine maker on the A350 when it comes to powering the new version.

Industry sources say Airbus has toyed with using an engine from GE Aerospace for the roughly 400-seat A350-2000, but that the engine maker has so far shown limited interest in joining.

Wagner reiterated that Airbus was confident of reaching its year-end delivery goals despite recent industrial quality flaws.

Longer term, Airbus continues to look at a "notional" date of 2030 for launching an all-new single-aisle jet, he said.