Financial Times FT.com

Airbus cautious of struggling carriers as fuel prices soar

By Kevin Done and Sylvia Pfeifer

Published: July 14 2008 03:00 | Last updated: July 14 2008 03:00

Airbus, the European aircraft maker, has compiled a watch list of airline customers that might get into financial difficulties as record fuel prices continue to grip the industry.

Hans Peter Ring, chief financial officer of EADS, parent of Airbus, said the list was based on airlines' cash generation and profitability. Airbus has had issues with some of its North American customers; Skybus, a low-cost start-up, collapsed into bankruptcy this year. Meanwhile, Frontier Airlines and a number of others have filed for Chapter 11.

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