VSMPO-Avisma reduces titanium product supplies

A slowdown in demand for air transportation in developed countries has translated into lower supplies of titanium products to the largest aircraft manufacturers – Boeing and Airbus. According to a statement issued by the company, the civil aircraft industry remains under pressure. The company noted a 27-month delay in the manufacture, tests and certification of the Boeing 787 (VSMPO-Avisma supplies nearly 50% of the titanium for this model) and a delay in serial production of the largest A380 aircraft at Airbus and A350 Airbus design.

Meanwhile, the titanium corporation expects to see a recovery as early as 2010-2011. Air transportation markets in developed countries are growing at an average 3-4%, while the pace of growth on emerging markets remains in the range of 15-20% and the second-hand airliner market is facing short supply. The largest customers of Boeing and Airbus remain airlines from emerging markets – Chinese, Indian and Arab air carriers. According to Expert magazine, based on the results of the recent air show Farnborough-2008, Boeing and Airbus signed orders for a total of $64 bln (down 9% on the previous air show held in November 2007). In addition, the largest buyer in Farnborough was Etihad Airways (Arab Emirates). Asian air carriers also placed large orders - Asiana Airlines ordered 20 Airbus aircraft for $7.2 bln and Air China ordered 45 Boeing aircraft for $6.3 bln.