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Airbus plans to cut output in favor of financing
Airbus plans to cut output in favor of financing

If the economy continues to plummet, Airbus is willing to cut output to boost company financing. This marks the first time the aircraft manufacturer has ever done so, since the 9/11 attacks in the United States.

With the extra revenue, Airbus will help airlines with financing and purchases, as credit becomes scarce. This was mentioned by the aircraft manufacturer’s chief executive—Tom Enders—in a related press release.

The financial crisis follows up a spike in oil prices—something Airbus barely recovered from. That’s why the company anticipated a decrease in orders for 2009.

In October 2008, Airbus canned a plan to increase production by as much as 10 percent, which is designed to trim down pending order backlogs. However, an unpredictable credit crisis and decreased air travel threatened the company with deferrals and cancellations.

“We are not in a bad position as we go into this (financial crisis) situation but we do not exclude further action if the situation deteriorates further,” Enders mentioned in a recent press meeting.

“Much depends on how long credit squeeze lasts,” Enders continued. “In principle financing will remain lucrative as aircraft are mobile assets, especially modern, fuel efficient ones.”


/ Новости

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