Airbus makes dollar purchases

AIRBUS   CURRENCY HEDGE   AIRCRAFT PROGRAMMES

Global - European aircraft manufacturer Airbus will be making purchases of its aircraft programmes in dollars to ease the burden caused by the stronger Euro.

Chief operating officer Fabrice Bregier said the dollar procurement for certain programmes like the current A320 single-aisle medium-range aircraft may be difficult.

However, it may be possible for a re-engined version of the A320 set to launch by 2015, Dow Jones Newswires reported.

Three-quarters of the costs for its wide-bodied A350 XWB will be paid in dollars, with Bregier saying the programme is risky due to difficulties in sourcing for some parts made from composite materials.

Airbus has booked 332 commitments for its A320neo, with over 500 more expected by the end of the Paris Air Show from 20-26 June.

Bregier believed the weak dollar "is a real problem" affecting its profit earnings. Should the dollar has been at $1.20 to the Euro instead of the average rate of $1.35, Airbus could have posted a profit of EUR1.8 billion last year.

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