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Airbus CEO Slams ‘Dysfunctional’ Banking System

Taking part in this week's World Economic Forum annual meeting, Airbus President and CEO Tom Enders said a functional global financial system is needed to support the world's airlines as they equip their fleets with more modern and efficient aircraft.

"Our products are very much needed by the airlines, but obviously if they can't find commercial financial solutions due to the credit crunch, then it's a problem," Enders told reporters in interviews at Davos, Switzerland. "In addition, if our suppliers don't get the lines of credit to support the running of their business, that is a problem too. This is what needs to get fixed."

"There are very few customers today who are able to buy aircraft from their cash flow, and most of them need financing - but there is a dysfunctional banking system," Enders added. "This is why initiatives from governments with the banks would be a good approach to provide a backstop if customers can't find commercial financial solutions."

Enders underscored that Airbus remains on solid footing, with a strong order backlog and a competitive product line of single-aisle and widebody jetliners.

Tom Enders: The Airline Industry Needs A Functioning Financial System