Quit delay habit, ILFC tells jetmakers

WASHINGTON (Reuters) - Airbus (EAD.PA) and Boeing (BA.N), the world's two largest planemakers, must deliver on their pledges and break with a growing pattern of delays, the head of the world's largest plane leasing firm said on Tuesday.

"We are getting into a pattern that is not sustainable from a company standpoint," Henri Courpron, chief executive of International Lease Finance Corp, said at the Reuters Aerospace and Defense Summit in Washington.

ILFC, a unit of American International Group Inc (AIG.N), is the largest customer for Boeing's upcoming 787 Dreamliner, which is already more than two years behind schedule. Boeing recently delayed the first delivery to the first quarter of 2011.

ILFC canceled an order for 10 A380 freighters after delays that eventually led to the cargo variant of the world's largest airliner being shelved. EADS unit Airbus has also been distracted by delays to its A400M military transporter.

Courpron said Boeing is solving the problems that led to its most recent Dreamliner delay, but he added he does not know if the company can meet its current delivery target. ILFC has $14 billion aircraft on order, including 74 Dreamliners.

Courpron, a former senior Airbus executive, said both planemakers would need to allay concerns about their reliability as they weigh possible modifications to their best-selling short-haul aircraft to improve fuel-efficiency.

"Their own performance on existing products is generating a lot of questions which normally you would not ask yourself when you have a new program," Courpron said.

Analysts say Airbus is leaning more aggressively toward putting new engines on its A320 series while Boeing entertains an all-new plane at a later date once more technology becomes available, but Courpron said neither could afford to sit still.

"Doing nothing will be a difficult position to maintain for Boeing or Airbus. It is entirely their decision, but it is difficult to stop progress."

Courpron said ILFC is re-evaluating its order for 10 A380 passenger jets, a plane he said is not core to its portfolio. The new superjumbo is popular with operators but poses challenges to lessors because of the relatively small customer base, he said.

Courpron also said he was satisfied with the design and market acceptance of the A350, a mid-sized plane being developed by Airbus in response to the successful Boeing 787 Dreamliner.

The plane, due to be delivered in 2013, went through several modifications on the drawing board and was severely criticized by ILFC's founder before Airbus settled on a composite fuselage.

"I am comfortable with the A350 because the market is comfortable with the A350. The last two decisions by significant airlines (have benefited the A350) which is very meaningful to me. We are happy with our A350 position."

ILFC has 12 A350-800s and A350-900s on order worth a total of $4.7 billion at current list prices. It has ordered 74 Dreamliners worth more than $13 billion.

Courpron said he sees a pickup in orders for commercial aircraft, which dwindled in the last year amid an economic downturn that drained travel demand. But he added that ILFC feels no pressure to order new planes.

"I don't feel any urge or urgency in buying more airplanes," he said.

Courpron also said there is no active effort by ILFC's parent AIG to sell the leasing company, which was founded in 1973 by Steven Udvar-Hazy.

The financial crisis that caused the near-collapse of AIG also hurt ILFC. AIG attempted to sell ILFC last year but struggled to find buyers because of the leasing company's high debt load. ILFC repaid nearly $4 billion of U.S. loans after selling $4.4 billion in secured and unsecured debt in August.

AIG named Courpron CEO of ILFC in May following the departure of Udvar-Hazy, who has set up his own competing firm.

(Additional reporting by Tim Hepher in Washington, editing by Matthew Lewis)