Will Scale Back A320 Rates, Keep Widebodies At Current Levels

Airbus announced Friday it will cut back production in late 2009, as record order backlogs show signs of dwindling due to the global economic collapse.

Effective in October 2009, the European planemaker will cut production rates of its A320 Family programme from 36 to 34 a month. Production rates for the A330/A340 widebody family will be kept at the current level of 8.5 a month, and not increased further as previously planned.

"This decision reflects Airbus' current view on market demand in times of airlines adapting their capacities and of continuing uncertainties caused by the worldwide economic crisis," the planemaker stated. "At this point, no impact on employment is foreseen."

Airbus CEO Tom Enders added, "We monitor the market continuously and try to be proactive. Flexibility and adaptability are essential in times of crises. We reached record production rates in late 2008, but now we see a drop of air traffic in most regions. Many airlines are taking capacity out of the market. I do not exclude further production cuts if the need arises."

Airbus achieved a record high of 483 deliveries in 2008 and aims to achieve a similar figure in 2009. The company said this latest "precautionary measure" will not affect the 2009 Airbus delivery target.

FMI: www.airbus.com