Airbus and Boeing are concerned about the effects of ever-rising fuel costs

Airbus and Boeing are concerned about the effects of ever-rising fuel costs on the financial health of the airline sector, reports La Tribune. Louis Gallois explains that “this is indeed a key issue, because their financial situation can impact both our past and future orders”. Risks for the two plane makers include order cancellations, drastic cuts in transport capacities or the acceleration of bankruptcies among airlines. As several carriers show difficulties to finance their aircraft purchases already, EADS has decided to increase its financial support to airlines over the next two quarters. Boeing also provides a large amount of aids to the sector. Jim McNerney, the group’s CEO, points out that the best way for airlines to tackle the oil price surge is to renew their fleets: “In this context, we must be able to offer replacement aircraft, not only aircraft for capacity growth”. In spite of this situation, the order books of both Airbus and Boeing are filled for the next eight years, points out Financial Times Deutschland. La Tribune, Financial Times Deutschland