Airbus on Tuesday said it beat rival Boeing in aircraft production in 2009, maintaining its place as the world’s largest planemaker, but warned that a troubled military transport program is endangering the rest of the company. CEO Tom Enders said Airbus should cancel the delayed and over-budget A400M project if customer governments fail to commit more funds soon because it is swallowing money and valuable resources. The issue overshadowed the news that Airbus delivered a record 498 aircraft in 2009, above its 2008 tally of 483 and Boeing’s score of 481. The increase masks what Enders called a “big disappointment” with Airbus’ newest plane, the A380 superjumbo, which has suffered from costly delays. Airbus only managed to deliver 10 A380s last year, well below its initial goal of 18.
South Carolina to sell Boeing bonds
South Carolina lawmakers want to borrow $270 million to build a new Boeing airliner assembly line in South Carolina. The Legislature’s Joint Bond Review Committee approved the bonds Tuesday morning just hours before lawmakers returned for a session where they will have to fill a massive budget hole. Senate Finance Committee Chairman Hugh Leatherman says the bonds are worth issuing because Boeing’s North Charleston plant will create jobs and attract other industries to the state. In the short run, the bonds will add $23 million to the state’s annual debt payments. Boeing Inc. is also getting tax breaks for the $750 million plant that it says will create 3,800 jobs in seven years.
Job competition intensifies in U.S.
The competition for jobs is intensifying as companies are reluctant to hire new workers, leaving millions of unemployed Americans chasing fewer job openings. There were nearly 6.4 unemployed workers, on average, for each available job at the end of November, according to Labor Department data released Tuesday. That’s up from 6.1 in October and a record high. There were 1.7 jobless people for each opening in December 2007, when the recession began. Job openings fell sharply to 2.42 million in November from 2.57 million in October, according to the department’s Job Openings and Labor Turnover survey.
Fed issues new credit card rules
The Federal Reserve on Tuesday issued sweeping new rules to better protect Americans from sudden hikes in interest rates on credit cards. The new rules, which take effect on Feb. 22, generally bar rate increases during the first year after an account is opened. After the first year, companies must provide customers with a 45-day notice before bumping up rates. Some lenders have pushed through rate increases ahead of the new rules. That irked lawmakers in Congress who had wanted to speed up implementation of the Fed’s rules. The new rules also will ban — with a few exceptions — increasing the rate on existing credit card balances.
From Herald news services
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