Demand Decline to Force Cuts in Airbus Production

France-based aircraft manufacturer Aibus managing director Fabrice Bregier on Friday said that they are now eyeing cuts in its production if airline companies continue to suffer from financial difficulty in the wake of the economic recession.

In a business conference held in France, Bregier said that the massive decline in the demand for new airplanes is already taking its toll to the manufacturer, stressing that if the number passengers will not go up, the company will be forced to limit production of medium haul A320 from 36 to 34 units per month.

Airbus has earlier predicted a monthly output of 40 new airplanes from its production lines.

“We are keeping our options open. And as of now, we still have no reason to have a new reduction in our production. However, we still have to be vigilant of the economic situation,” Bregier added.

“We still have time to adjust our production line considering the situation of airlines and airports all over the world. This is the right time to work together and find a win-win solution for all parties,” he said.

Earlier, Airbus President Thomas Enders hinted of a new cut in the company’s production line, stressing that the economic makes it difficult for them to meet the target of 300 orders per year. As of January 2009, only 125 new orders were made.