Crisis Briefing - 16-Oct-08

Airbus defers industrial ramp-up

Airbus, with some 3,800 aircraft on backlog, is clearly nervous the global financial crisis could cause more aircraft deferments and cancellations. The manufacturer has shelved its plans to increase aircraft production rates, which will result in 48 fewer narrowbodies and 12 fewer widebodies rolling off the production floor after 2010. The manufacturer is also keen to protect aircraft values - and appears to have listened to lessor pleas to "go slow". With Boeing workers enjoying an extended Summer break, a slowdown in production is a good development for the industry - but enormously frustrating for some airlines keen to take advantage of market opportunities and competitor weakness as storm conditions intensify.

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