Air Transport

A French regional politician has questioned the financial ability of Airbus's first-tier suppliers to cope with the future A320 narrowbody replacement and A350 XWB programmes, having extended themselves so heavily on the delayed A380.

Former minister and president of the Midi-Pyrenees region Martin Malvy says Airbus suppliers became heavily indebted between 2001 and 2004 during the industrial ramp-up of the A380.

He says there was a 50% increase in medium and long-term borrowing by aerospace suppliers and a 130% increase in short-term borrowing to cover cashflow requirements, with total debt now standing at €400 million ($510 million).

Malvy says support such as repayable loans from the French state, normally reserved for first-tier suppliers, should be extended to tiers two and three. He is also calling for a successor to Plan Ader, a €24 million initiative launched in 2001 to develop the region's industrial infrastructure to meet the A380's production needs, with a new plan to meet the challenges posed by Airbus's restructuring initiative, Power8.