Airbus eyes customer finance amid euro crisis

Sydney: Global aviation giant Airbus said it would consider providing financing for customers as the euro zone debt crisis drags on, but affirmed upbeat long-term forecasts due to booming Asian demand.
The comments came as the International Monetary Fund warned of a euro zone recession, with banks — headed by French-Belgian lender Dexia — now facing collapse over bad exposure to sovereign debts.
Tom Williams, vice-president of programmes, said Airbus had not seen any immediate impact from intensifying debt crisis in the euro zone, but it was in talks with European credit agencies about shoring up its customers.
“The European banks have been in the past few years active in terms of aircraft finance... and clearly there will be some question marks if you look at the euro crisis today and the liquidity position of some of the big banks,” he told a markets briefing in Sydney.
“We will if necessary enter into some financing although we’re not a bank,” he added.
“Of course that’s just an insurance (policy) and it has a cost, but it does allow the airlines to go into the market with a strong guarantee and to raise money.”
07/10/11 Oman Daily Observer

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Categories: Foreign Oct 2011, Indian Aviation- In General Oct 2011