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Rising yuan does not affect Airbus sales

7-Apr-2011 6:03 PM

Airbus China President Laurence Barron stated the rising Chinese yuan does not affect the manufacturer's sales as its aircraft are sold in US dollars, though a stronger yuan makes aircraft cheaper for Chinese airlines (Dow Jones, 07-Apr-2011). Currency movements do affect the company, because "aircraft worldwide are sold in dollars, and it has an impact on our results because some of our costs are in euros," he said.

Airbus China: "If we accept any other currency other than the dollar we have to address two issues. One is, most importantly, who takes the exchange risk. We are talking about long-term contracts. Some aircraft sold today could be delivered 10 years away, so it becomes difficult to hedge that far out. So the currency risk issue needs to be resolved, and of course if we accept anything except the dollar we need to be certain of convertibility. I don't think it is impossible in the future for us to consider accepting currencies other than the dollar but those issues need to be addressed," Laurence Barron, President. Source: Dow Jones, 07-Apr-2011.