Airbus says may have to cut A380 production further

Airbus raised the prospect Monday of a new cut in production of its A380 superjumbo because of weak sales but pledged to try to make sure the struggling project still breaks even. Airbus already plans to cut production to one superjumbo a month in 2018 from an unspecified level now and has said it needs to win more sales this year to maintain output at that new level, called rate 1 by the company's executives. At the same time, Airbus is trying to reduce its industrial costs to prevent financial losses, pending what it believes will be an upturn in sales as global air traffic continues to grow. "My first job is at least to adapt to the assumptions that we have for rate 1 in 2018, which is being done," Programmes Head Didier Evrard said. "Doing that is our first goal and meanwhile (sales chief) John (Leahy) is trying to sell more to A380 customers." Asked whether Airbus could have to cut production again, Evrard said, "Yes, it is likely that we may have to go below rate 1... and we will continue to study opportunities to (make) our program as healthy as possible on the financial side." Airbus shares fell 1.1%. Leahy told the same briefing that Airbus was working to reduce the A380 breakeven level to less than one a month. But he insisted he saw a future for the world's largest airliner as air traffic continues to double every 15 years.<br/>