Airbus Looks to Asia

TOULOUSE, France (TheStreet) -- Airbus forecasts that 25,000 new aircraft valued at $3.1 trillion will be delivered between 2009 and 2028, but it sees short-term problems.

In an interview published Friday in The Wall Street Journal, Airbus chief executive Tom Enders said the company faces two difficult years and could cut production further.

"I certainly cannot exclude that we will cut back production even more," Enders Chief Executive Tom Enders said. "I think we still have two difficult years ahead of us."

In October, Airbus will cut A320 production to 34 a month, down from 36, and it has elected not to implement a once-planned increase in monthly production to 40. It will also forego plans to increase production of A330s and A340s.

In its latest market forecast, the European aircraft maker said emerging economies, airline expansion, fleet replacement and population growth will drive future demand.

Airbus' forecast differs from its competitor's, because Airbus sees more demand for very large aircraft, while Boeing(BA Quote) says growth will be highest for single-aisle airplanes. In its recent forecast, Boeing said the world will need 29,000 aircraft, valued at $3.2 trillion, over the next 20 years.

Airbus sees a demand for 1,700 very large aircraft, such as the A380, for 6,250 twin aisle, 250 to 400 passenger aircraft and demand for 17,000 single-aisle aircraft.

The Asia Pacific, including both China and India, will account for 31% of demand, followed by Europe at 25% and North America at 10%. In the two leading markets, India will have 10% growth while China will have 7.9% growth.