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29 February 2024

Eads will have to cut output, jobs safe: CEO

By Reuters

European aerospace group Eads, parent of Airbus, will have to adapt its production plans to cope with the economic crisis, but is not thinking of cutting jobs for now, its Chief Executive Officer said.

Tough economic conditions were taking their toll on the firm's commercial activities even if they were not affecting defence contracts, Louis Gallois said.

"What is characterising the situation is a lack of visibility," Gallois said. "We will have to adapt our production plans."

Airbus recently shelved plans to increase the production of single-aisle jets and has said it would be ready to lower production if circumstances warranted.

In a sign that the situation may be worsening, Eads said on Friday that airlines had cancelled more planes than they purchased from Airbus in January.

That left the European planemaker with a negative net order tally, a predicament shared with US rival Boeing.