Aircraft manufacturers warned

Manufacturing News, Source : TheManufacturer.com
Published : 09 Nov 2002 8:58

While the commercial aircraft orders appear to be booming, the Institute for International Research warned yesterday that the deals may not bring much benefit for them in the long term.

In the past week, news has emerged about Boeing lowering its proposal to the Air Force by $9 billion, Germany attempting to reduce its order of Airbus A400Ms and the possibility of Bomdardier Inc.'s debt rating being downgraded by Moody's Investor Services despite its blossoming Flexjet(R) Asia-Pacific Program.

``These contracts are necessary for the manufacturers, but it is debatable how much they will impact their bottom lines,'' says Elizabeth Wilson, Vice President of Capital Markets at the Institute for International Research. ``Of course they need to make every effort to stay in the black short-term, but are they thinking about how these deals will position them at the negotiating table once the industry rebounds?''

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