Airbus weathering aviation storm

Airbus has shelved a planned increase in production

By Peter Humi
CNN

PARIS, France (CNN) -- It has been one of the success stories of recent decades.

For the past five years Airbus has challenged sales of Boeing, the world's largest aircraft manufacturer.

Unlike Boeing, however, Airbus says the current depressed airline market will not mean lay-offs among its 47,000 workforce.

Nevertheless, the crash of an American Airlines Airbus in New York this week has done little to bolster confidence in an industry traumatised by terrorism.

Pierre Sparaco, of Aviation Week, said: "It's going to make the crisis worse, there is no doubt about that. The fear of flying is still a reality."

EXTRA INFORMATION • Airbus background: 3D model  • Specs: Airbus A300  • Timeline: Airbus crashes

Airbus admits a planned increase in production has been shelved following the September 11 attacks, due largely, the company says, to airlines delaying final delivery.

But it says deliveries for 2002 will be roughly the same as this year's -- between 300 and 330 aircraft.

Since September, the sharpest decline in air travel has been in North America and across the Atlantic. But Airbus says other regions have been less affected.

Earlier this month Emirates Airlines, based in Dubai, placed a massive order worth $15bn for a total of 58 aircraft, 33 of them from Airbus -- the remainder Boeing.

In the order are 22 Airbus A380s -- a huge airliner designed to out-jumbo Boeing's 747.

Delivery of the double-decked airliner is not due until the year 2006. Airbus says a total of 87 such aircraft have been ordered to date.

Sparaco said: "The airline industry should be back to a very positive context, let's put it in those words, by the time the first of those aircraft is delivered in 2006. Of course, you never know. no-one has a crystal ball in the aviation industry!"

Boeing has said recovery in the business could take up to three-and-a-half years.

Airbus will not speculate, but point to past crises such as the 1991 Gulf War which led to a dramatic drop in business, but which, Airbus continues, recovered to previous levels within 12 months of the war ending.