New Aircraft Orders Drop For Airbus

One of the two biggest manufacturers of jet aircraft, Airbus Industries, suffered an 86% drop in orders in the first half of the year, as airlines are struggling to cope due to the impact of the world economic situation.

New orders dropped to €6.19bn (£5.3bn) down from €44.1bn last year, according to a financial report released by Airbus parent company EADS.

The numbers of aircraft orders in the first six months of this year were 68, down from 487 at the same time last year.

However Airbus’s revenue was down by only 1% on last year to €13.95bn based on 254 deliveries to customers, nine more than last year.

Both Airbus and rival Boeing have a substantial order book which has built up prior to the world economic crisis.

Howard Miller, Ryanair’s chief financial officer said doesn’t subscribe to the plane manufacturers theory, saying that they were “in denial.”

“They’re thinking they got a huge backlog which will see them through but in reality that backlog is very shaky and could disappear. They’ll end up having to deal with people like Ryanair,” he said. Mr. Miller added that Airbus wouldn’t negotiate with the low-cost carrier as could not meet Ryanair’s pricing requirements.

Thanks to the Telegraph for the quotes.  For more information visit www.telegraph.co.uk