But Surge Of A320neo Orders This Year May Mean A Production Increase

It's a classic good news, bad news scenario. The bad news for Airbus is that it sees a decline in orders in 2012 compared to 2011, but the good news is, so many airplanes were ordered in 2011 that a production increase is likely.

That is the assessment from Airbus CEO Tom Enders in an interview published Thursday in the German newspaper Boersen-Zeitung.

Reuters reports that Enders told the paper that 2012 will not likely see the rush of orders that were experienced by both Airbus and Boeing in 2011. Both companies announced re-engined versions of existing airplanes, and airlines looking to cut fuel costs filled up order books on both sides of the Atlantic.

Airbus recently announced will increase overall A320 Family production to 42 aircraft per month next year, representing a new industrial record. Total firm orders for the airplane stand at 8,113 as of October 2011, including more than 1,000 for the A320neo. Enders told the German paper that the production rate could go as high as 44 airplanes per month, but he was not yet ready to commit to that level at this time.

Enders did say that the weak economy is making it more difficult for some smaller suppliers to obtain financing, and that the planemaker was looking to capital markets in Asia for additional opportunities. He also said the acquisition by the German government of a larger stake in Airbus' parent company EADS was a bad move, saying more government involvement in the company is "a step in the wrong direction." He said he things both the economy and the state benefit if government "stays out" of private industry.

FMI: www.airbus.com