Middle East unrest could cost Airbus 60 orders
Airbus President Middle East, Habib Fekih, stated unrest in the Middle East and North Africa may cost the manufacturer up to 60 orders in the region in 2011 (Bloomberg, 11-Apr-2011). This equates to 40% of the total expected orders in the region. Airbus had projected up to 150 orders in the region this year, but has revised its estimates to 90-100 aircraft. The manufacture may also review a “limited number” of deliveries in the region. Mr Fekih predicts that the political turmoil will lead to sales being delayed rather than lost completely. He also stated that demand from the Middle East is still higher than in Europe and Asia, even though “nothing so dramatic happened” in those regions.
Airbus: “I believe we can get close to 90 or 100 orders. Before the unrest I would have said 150, easily. The potential was there at the beginning of this year in some countries where there is unrest today. This unrest will have a limited effect but will not impact growth in the long run. Of course I’m concerned, and it will have consequences, geopolitical and economic, but whatever happens the traffic will not disappear. The region has such huge potential for development and growth,” Habib Fekih, President Middle East. Source: Bloomberg, 11-Apr-2011.