The entire future of European plane maker, Airbus, is in jeopardy because of the weakness of the dollar – the stark warning from the company boss. Ironically, the order books have never been as full as at present. But the problem is the aircraft industry trades in dollars. And the greenback is hitting an all time low against the Euro. Airbus is already implementing highly unpopular restructuring plans to cut 10,000 jobs and close factories.
But last night chief executive Tom Enders, warned that would not be enough. “The dollar’s rapid decline is life-threatening,” he told staff, adding “radical measures” were needed.
Airbus was already struggling to keep up with arch-rival, American company Boeing after delays to its A380 super jumbo. And the tumbling dollar is increasing Boeing’s advantage.
Last night, it was trading at 1.49 to the euro, and all the signs point to it getting weaker still.