Boeing and Airbus can handle a slowdown, but a worldwide economic depression would devastate the two companies, forcing massive layoffs and curtailing of R&D work.
Boeing, Airbus face turbulence as airlines defer orders(China Daily) International aircraft giants Airbus and Boeing are bracing for a rough year in China.
The next 12 months will be "much different from the last four years," said Laurence Barron, Airbus China president.
The two companies were both enormously successful over the past few years, netting a combined 6,800 orders from 2005 through 2007. Last year demand for planes started to drop but Airbus still managed to sell 777 and Boeing 662.
Growing demand in Asia-Pacific and the Middle East and pressure for airlines to modernize their fleet to improve fuel efficiency drove the boom.
But the global economic downturn is curtailing air traffic and many airlines are finding it hard to get financing. Boeing and Airbus have a massive order backlog (3,600 jets each) that might help get the companies through the crunch. But some carriers are grounding jets and canceling or deferring delivery of planes they've ordered.
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