Financial Times FT.com

Farnborough Airshow 2008

Airbus cautious of struggling carriers

By Kevin Done and Sylvia Pfeifer

Published: July 13 2008 18:18 | Last updated: July 13 2008 22:46

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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