Airbus Could Make Production Cuts

Airbus is likely to cut production in 2002 to as few as 300 planes from as many as 350 announced just three weeks ago, according to an internal briefing paper.

The No. 2 maker of commercial jets also anticipates having to finance sales to airlines that want to go ahead with purchases, as weak passenger traffic and low cash will make sales impossible otherwise, said Mike Turner, managing director at BAE Systems, an Airbus shareholder. He declined to say what production figure Airbus will set for 2002 and 2003.

Philippe Camus, co-chief executive of European Aeronautic Defense & Space Co., said Airbus production could fall to as few as 280 planes “without major steps such as major layoffs.” EADS owns 80% of Airbus.

The company made 311 planes last year and aims for 320 this year, down from 330 targeted before the attacks. Airbus had a goal of a record 390 planes in 2002 before the terrorist attacks.