Airbus updates the market

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Airbus staged a two-day intensive ‘innovation’ update at its Hamburg HQ last month briefing 90 international media representatives on its future products.

The superiority of Airbus products over Boeing equivalents was, unsurprisingly, an overriding theme at the annual Airbus media gathering last month, which for 2009, was staged at the aircraft manufacturing giant’s Hamburg HQ.

With an emphasis on forthcoming improvements to its family of products as the name of the two-day update (‘Airbus Innovation Days’) suggested, Airbus chiefs presented their case as to why their airline clients should opt for an A380 as opposed to a Boeing 747, an A320 or A330 versus a Boeing 737, while a market update on the hotly anticipated A350 XWB was provided – much to the delight of the many aviation geeks salivating in the audience.

In addition, Airbus chief operating officer, customers, John Leahy, provided an insight into the firm’s commercial status given the current economic climate.

Last year Airbus delivered 483 aircraft marking the company´s record year for deliveries. Gross orders of 900 were placed – the third highest ever for the firm – while a backlog of 3715 aircraft was reported, an industry record.

But in 2009 it’s a different story; to date, the company, which had forecast 300 orders for the year, has secured just 30 orders.

“But the important thing is not how many orders we get this year – we have record backlogs – [the question is], can we keep production lines going in 2009 and 2010?” Leahy stressed.

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“It´s not about getting orders for 2014 deliveries; because that will look after itself.”

Leahy conceded that financing production was a “problem” given the current climate.

“But we are getting support from export credit agencies,” he said.

“Last year 20% was financed by export credit agencies – this year it´s 50% - and we are increasing the money we are putting into financing.”

He added: “It (the finance issue) is temporary and we will get through it – we will be ok as long as we get government support.”

Fortunately, the Airbus backlog is “well balanced” across the globe, according to Leahy and in the Middle East where the company has a 13% backlog compared to Boeing’s 7%, the firm is confident that its three biggest clients – Emirates Airline, Qatar Airways and Etihad Airways - will honour their commitments to aircraft orders.

“These airlines are solid and well financed,” he said at the press briefing.

“We are confident they will stay with us and stay with the programme.”

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