Major cost savings demanded by Airbus chief executive Noel Forgeard will be used to ensure the company does not have to call on shareholders for additional A380 funding if production rates fall markedly next year.
Forgeard unexpectedly asked Airbus managers recently to look for one-off savings of €1 billion ($1.1 billion) this year, plus €1.5 billion off the company's annual cost base by 2006.
Speaking at the opening of Airbus's A380 wing plant at Broughton in north Wales on 4 July, Airbus UK managing director Tom Williams said the move was primarily to ensure adequate funding for the A380 programme if output dropped into the 260-280 range next year.
Airbus expects to build 300 aircraft in 2004 but the outlook has been clouded by the SARS epidemic.
Williams says: "We still think 300 is achievable next year and that that is the bottom of the market. At 260 to 280 is where life starts to become difficult. What Noel is saying is that if we get down to that, then let's get our cashflow to a position where we would not have to go outside for cash."
Source: Flight International
