Airline customers are beginning to angle for their first aircraft deals in the new European single currency. But there are good reasons why Airbus is not yet pushing too hard for the euro as an international replacement for the dollar.

Dietrich Russell, Airbus chief operating officer, says that "a number of customers" have made approaches about euro contracts. But although he welcomes the chance to build and sell in the same currency - on a par with Seattle - it is a case of responding to requests rather than a wholesale move to the currency.

The Airbus partners have, after all, already hedged against the dollar, which is the currency in which Toulouse builds and sells its aircraft. There is also the question of residual aircraft values, which will follow the dollar.

He believes that the euro will eventually assert itself as an international trade currency to rival the dollar. "When it does we will be very happy to see it," he says. Until then Airbus will play it cool.

Source: Airline Business