Deutche Bank downgrades EADS rating

Ottobrunn, Germany: Germany's Deutsche Bank has cut it's rating on European Aeronautic Defence and Space, the parent of Airbus, from 'hold' to 'sell,' predicting weaker aircraft orders in 2008.

Also affecting the downgrading was a report in a German magazine that said the firm was having production problems with its A400M military transport aircraft that may delay its first flights scheduled for July.

 EADS, with offices in Ottobrunn, Germany; Paris and Schiphol-Rijk, Netherlands, has been stating for some time now that the euro's strength was undermining the company's performance because the value of its dollar-based earnings was reduced.

Industry analysts also said that the airline industry was expected to see slower sales in 2008 with an economic slowdown affecting appetite for air travel among consumers.