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Airbus Director Says Deeper Production Cuts Could Be Coming

A320 Output Reduced To 36 Aircraft Per Month

Airbus managing director Fabrice Bregier said the aircraft manufacturer could be facing production cuts if airlines continue to falter.

Bregier made the statement at a business conference in Toulouse, France Friday. He said economic conditions have already affected the production of the medium-haul A320, which will be reduced by 2 aircraft per month beginning in October.  "There is no reason to think there will be a new reduction in output," he said, "but we must be vigilant. We have to consider the situation of companies that are causing us concern for the second half of 2010. We have to work with them to find solutions. There is still time to adjust production."

The international news service AFP reports that Bregier said it would be "very difficult" for Airbus to meet it's projection of 300 orders this year. So far, the company has received only 125 orders for new airplanes, but he said that concern was "secondary."

Airbus currently has orders for 3,500 aircraft, he said. "What matters is to avoid losing orders and to maintain an acceptable pace of deliveries in 2010."

Airbus is planning to match it's 2008 deliveries at 480 aircraft this year.

FMI: www.airbus.com

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