MAX KINGSLEY-JONES / PARIS
Airbus is hoping for a quick decision on possible hostilities in the Middle East amid concerns that uncertainty could turn an already bleak 2003 into a crisis for airlines.
Revealing its 2002 results last week, Airbus president Noel Forgeard said the manufacturer had a better year in 2002 than it expected, with its 300 orders higher than expected 12 months ago, and its output achieving the 300-aircraft target set at the beginning of the year. However, Forgeard warns that this year will be "extremely difficult" and, although Airbus's delivery level should remain constant, orders will be down.
Forgeard is hopeful the manufacturer will not have to take any drastic cost-reduction measures, but says the airline industry shows no signs of recovery in the near term and events in the Middle East could help or hinder the situation depending on their timing. Airbus is concerned that if indecision over the war in Iraq drags on beyond February, or any invasion is not quick and decisive, then the airline crisis could "deepen severely", forcing it to cut output and staff levels.
"The uncertainty is forcing people to delay equipment purchasing plans," says Airbus vice-president customer affairs John Leahy.
The company has so far managed to avoid the mass layoffs that rival Boeing has implemented, through cost savings and productivity gains, and maintained its headcount at around 46,000. "If worst comes to worst we might have to reconsider this policy after having used any other means," warns Forgeard.
Airbus generated a turnover of €19.5 billion ($20.5 billion) last year, and Forgeard says "profit was in line with expectations". This is believed to be around €1.4 billion, compared to €1.7 billion in 2001.
Meanwhile, Airbus has taken the initiative in aircraft pricing for the first time, implementing an average 2.5% increase in its catalogue prices across the range. This is the first time prices have been increased for five years. The move has previously been led by Boeing.
Source: Flight International
