Airbus may forced to cut back production, board chief says available later (Roundup)

Oct 30, 2009, 10:56 GMT

Hamburg - European planemaker Airbus may be forced to make further production cutbacks because of the weak financial state of some airlines, board chairman Thomas Enders said.

Next year production would more likely be reduced than increased, Enders said at a function on Thursday evening, pointing out that many airlines faced problems because of reduced liquidity.

Enders sais Airbus had already cut back production of planes with a single aisle from 36 to 34 per month, and for long-distance aircraft from 11 to eight.

Airbus has orders for more than 3,400 aircraft and plans to deliver 483 planes this year, the same number as last year's record volume, he said.

'That is a success in view of the crisis in the aviation industry,' Enders said.

Air France on Friday became the first European airline to take delivery of the A380, the world's biggest passenger plane.

Some 600 guests watched the roll-out at the Airbus production facility in the Hamburg suburb of Finkenwerder, including 200 who were flown in from France.

All A380s destined for European clients are delivered in Hamburg, and not in the main Airbus production centre in Toulouse, France.

Nineteen of the double-decker aircraft are already in operation with Singapore Airlines, the Gulf airline Emirates and Australia's Qantas.

Some 25 of the superjumbos were due to be delivered in 2009, before the number was cut back to 13. Enders declined to say whether all 13 would would actually be rolled out.

Airbus ran into financial turbulence in 2006-2007 because of cabling problems with the A380, forcing a delay in production.

It introduced a massive cost-cutting programme, which Enders said was well on its way to reaching its target of saving 2.1 billion euros (3.1 billion dollars) by 2010.