Airbus mulls A320 output hike to 50/month from 2017 -source

PARIS, Feb 24 (Reuters) - European planemaker Airbus is discussing with suppliers the possibility of raising production of its popular A320 family of jets to 50 a month as early as 2017, narrowing a gap with rival Boeing (NYSE: BA - news) , a senior industry source said on Tuesday.

Airbus has asked suppliers to be ready to adjust to production of 48 aircraft a month during 2016, rising to 50 a month in 2017, the source said, asking not to be named.

The increase would stretch an existing target that calls for an increase in output to 46 of the single-aisle jets by the second-quarter of 2016, up from a current rate of 42. There can be a lag between supplier schedules and aircraft production.

However, no final decision has been taken, and it remains unclear, following an internal debate within the planemaker over the timing of output increases, whether Airbus Group (Swiss: AIR.SW - news) will announce new levels alongside 2014 results due on Feb. 27.

A spokesman for Airbus declined to comment. (Reporting by Tim Hepher; Editing by James Regan)