ATW Daily News

Airbus sees 12 January cancellations; Udvar-Hazy projects major production cuts

Monday February 9, 2009

Airbus revealed Friday that it had 12 order cancellations in January while booking just four orders, and ILFC Chairman and CEO Steven Udvar-Hazy projected that both Airbus and Boeing will cut production over the next two years by as much as 30%-35%. Airbus currently plans to produce close to 500 aircraft this year, while Boeing's target is 480-485 units. Turkish Airlines ordered four A321s in January, but Airbus reported cancellations during the month for three A318s, two A319s, three A320s and four A321s. Boeing has reported 31 787 cancellations so far this year and last week warned of possible "modest production cuts" in 2010 (ATWOnline, Feb. 6).

The influential Udvar-Hazy, in widely reported remarks made Friday at a Boeing event in Seattle, warned that "this could be a year where the number of net cancellations and deferrals actually exceed genuine new orders." He added, "It wouldn't surprise me if in 18-24 months there were cuts of as much as 30%-35% at both Boeing and Airbus. Airlines are focused on survival, not ordering planes. . .Both Boeing and Airbus will be forced to make production cutbacks. By the fourth quarter, we could definitely see some adjustments. I'd like to see it sooner."

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