Credit crisis will impact European aerospace sector, say chief execs
14 Oct 2008
Aerospace companies will be hit by the ongoing credit crisis, executives attending the annual congress of the Aerospace and Defense Industries Association of Europe said over the weekend.
The credit crisis and the global economic slowdown "will have a serious, serious impact on our industry," said Allan Cook, chief executive of UK-based Cobham Plc.
The sentiment was also echoed by Charles Edelstenne, chairman of French aerospace firm, the military and business-jet manufacturer Dassault Aviation SA, who said the crisis would rub off on all sectors of the aerospace industry. In particular, he said, suppliers of military equipment would suffer as countries diverted defence spending to support other areas of their economies.
Edelstenne also said that demand from airlines and aircraft leasers could dwindle if they failed to obtain credit.
As for European Aeronautic Defence & Space Co (EADS) chief executive, Louis Gallois, the crisis, he said, would have only a limited impact on his company as it would actually benefit from a stronger dollar. EADS is the parent of commercial aircraft manufacturer Airbus, which has for long suffered the consequences of a weak dollar against a stronger euro.
This mismatch occurs as EADS sells its planes in dollars even as it incurs most of its costs in euros.
