newstodate.aero
JUN 03, 2004 (newstodate): Rising fuel costs work both ways for an aircraft manufacturer, says Airbus.
-For an airline, rising fuel costs mean increasing proportions of revenue eaten up by more costs rather than generating more profits. For an aifcraft manufacturer, the effects are twofold, says John Leahy, Airbus CCO.
-Less profits makes it more difficult for the airline to finance aircraft acquisitions. But rising fuel costs also makes it more important to renew aircraft fleet composition from aircraft consuming more fuel to new aircraft consuming less fuel.
Airbus does not therefore expect the current fuel price hike to hurt the manufacturing industry in the slightly longer term.
-For an airline, rising fuel costs mean increasing proportions of revenue eaten up by more costs rather than generating more profits. For an aifcraft manufacturer, the effects are twofold, says John Leahy, Airbus CCO.
-Less profits makes it more difficult for the airline to finance aircraft acquisitions. But rising fuel costs also makes it more important to renew aircraft fleet composition from aircraft consuming more fuel to new aircraft consuming less fuel.
Airbus does not therefore expect the current fuel price hike to hurt the manufacturing industry in the slightly longer term.