Demand will fall 50%: Airbus

AIRCRAFT manufacturer Airbus has said that demand for its new aircraft will likely drop by more than 50% this year as an initial flurry of A320neo purchases wanes.

While Airbus’s record orders in 2011 saw it extend its lead over Boeing, this year both rivals will face the challenge of increasing production and driving sales in an environment where component suppliers and airlines are encountering financing hurdles amid the European debt crisis.

Based in Toulouse, France, Airbus won 1,419 orders last year, beating its previous high of 1,341 in 2007. A unit of the European Aeronautic, Defence & Space Co (EADS), Airbus delivered a record 534 planes ahead of budget and predicted deliveries will rise to 570 aircraft in 2012.