A380 Output Unlikely Below 20 In 2011

EADS chief executive Louis Gallois said Airbus A380 superjumbo production was unlikely to fall back below 20 planes in 2011 and he reaffirmed plans to deliver the first mid-sized A350 aircraft in 2013.

In his first comments on next year's production plans for the world's largest airliner, Gallois declined to give a detailed target but doubted there would be a slowdown compared with the official target of at least 20 planes for 2010.

Gallois said Airbus was on track to meet the 2010 goal after making "significant progress" in reducing outstanding work after earlier production delays, and it must now cut costs per plane.

He said EADS subsidiary Airbus must balance the need to keep a realistic schedule with the need to amortize costs, which shot up when wiring installation problems caused a three-year delay.

Asked if there was any reason to suppose 2011 output would slip below 20 aircraft, Gallois said, "It is not the most probable hypothesis."

Gallois again dismissed reports that the mid-sized A350, built to challenge the Boeing 787 Dreamliner, would be delayed. A 2013 target date for first delivery was intact.

EADS is meanwhile bogged down in months-long negotiations with buyer countries to ratify a preliminary deal to rescue the loss-making Airbus A400M military aircraft.

The deal reached in March calls for a EUR€3.5 billion bailout and limits cancellations to 10 out of 180 aircraft, but the floor level of 170 has been questioned by some politicians.

Gallois said no buyer nations were discussing taking the total number of orders for the transporter below 170.

He said there are moves aimed at bringing South Africa back into the program as an export customer after it cancelled an order due to cost overruns and delays.

"There are some discussions but I can't give you more," Gallois said.

(Reuters)