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 Airbus Freezes Output Rise But Says Demand Strong
Aviation European planemaker Airbus has suspended plans to increase its passenger jet production due to the global financial crisis, a spokesman said on Wednesday, confirming a newspaper report. Airbus produces 36 single-aisle aircraft and 10 wide-body A330/A340 aircraft a month and had planned to boost this to 40 and 11 respectively by 2010 to keep pace with record order backlogs. But doubts have been raised over the production rate as some airline customers defer or cancel orders due to the combined effects of the credit squeeze and high fuel prices. "We are leaving production where it is for the time being until market conditions improve," the spokesman said. Airbus sales chief John Leahy told the Wall Street Journal earlier that it had been forced to re-examine its production plans due to the deteriorating global financial situation. "But we still have very strong demand, and we are confident that these aircraft are needed," the paper quoted him as saying. In July, Airbus chief executive Tom Enders said he would review production levels of the A320 single-aisle aircraft family later in the year. Production at rival Boeing meanwhile remains halted by a five week-old machinists strike. A senior Boeing executive said in Paris on Monday that the planemaker would not discuss its own production or delivery plans ahead of its quarterly results on October 22.
  Posted on Sunday, October 19 @ 08:01:40 PDT by akzah
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