Airbus chief: 2 more bad years; A350 launch aid

Published 12:09 pm Friday, September 18, 2009

Airbus may have to cut its commercial jet production next year since airlines still are struggling with lower air traffic and a difficult credit market.

Airbus chief executive Tom Enders told the Wall Street Journal that he expects another two difficult years in the commercial jet business.

While the European jet-maker still expects to meet its jet delivery goal this year, it expects airlines to have a tough time taking aircraft deliveries next year.

Like Boeing, Airbus may dig into its own pockets to finance some jet deliveries, Enders said.

“But we’re not going to stupidly pump as many aircraft as possible into the market by essentially buying our own products,” he said.

In other Airbus news, the jet maker is expected to give even more work for its new A350 to Spain than originally planned, Reuters reported.

Boeing and its supporters are closely watching what Airbus does with the A350 in terms of government handouts. The World Trade Organization recently sided with Boeing and the U.S. in ruling that Airbus had received an unfair advantage through European government launch aid. Airbus will receive A350 start-up money from several European countries, including Spain, France and Germany.

Boeing backers argue the WTO ruling should influence the upcoming U.S. Air Force tanker competition.

Here’s Boeing’s statement on the matter:

Our position as a company has been that the government subsidies Airbus receives are indeed market-distorting and a violation of WTO rules, and we strongly back U.S. government efforts to end them. Airbus, however, continues to disregard these international rules by seeking additional launch aid subsidies for its products, including the A350. Whether it’s in commercial or military markets, including the U.S. Tanker program, what we seek is a fair competition on a level playing field where everyone is held to the same standards and transparencies.