Boeing and Airbus better ask for a new set of braces and tighten their belts. The largest block of purchasers of their products are the China airlines. All of whom are now struggling from issues not directly related to the recession but definitely exacerbated by the global downturn.
Next year they are asking for a cut in the total of 180 craft they are planning to take. This represents about 15-18% of their planned deliveries for next year. So far neither has initiated any cuts in production due to customer delays, cancellations or the economy. Just last month Airbus reaffirmed its delivery rate. Boeing of course is still stumbling after the strike and has supply chain problems apparently up the wazoo. The only bright spot seems to be the GCC carriers with Etihad just reaffirming its giant orders from Farnborough this year.
With India’s airline market now dramatically cut back. There are no major blockbuster orders on the horizon and everyone else is going to be conservative. I suggest that we are going to see a lot more deferments. This means that the manufacturers better start trimming their schedules. For Boeing this presents a major set of issues as they struggle readjusting their product lines.
Watch for a raft of announcements starting in January on this subject.
Cheers
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