IATA chief pours cold water on Airbus output increase

The airline industry's most senior representative on Friday cast doubt on plans by Europe's Airbus for sharp increases in jetliner production, saying they appeared overly optimistic. Willie Walsh, DG of the IATA, voiced scepticism a day after Airbus published proposals to almost double single-aisle production to as high as 75 jets a month by 2025. read more "Let's wait and see, because obviously there is a huge disconnect between what the manufacturers say they're going to produce and what the airlines decide to buy," he said. "So, you know that they're in the business of selling. I don't see that there's going to be the requirement for whatever it is they're producing," he added. Geneva-based IATA has no day-to-day role in aircraft negotiations, but Walsh was for years among the most influential buyers as the former head of BA and then its parent group IAG. Airbus CE Guillaume Faury defended the increases on Thursday, saying that pent-up demand for flights on medium-haul jets was "very strong". Leasing company executives and some suppliers have responded more cautiously, amid what industry sources described as a standoff between Airbus and some suppliers over who should pay for investments needed to get output to pre-crisis levels. Faury sought to allay suppliers' concerns, saying the detailed new roadmap provided by Airbus would allow them to plan and raise any necessary funding from markets.<br/>