Chief says Airbus has "serious dollar problem"

BREMEN, Germany (Reuters) - Airbus (EAD.PA) faces a "serious dollar problem" that is forcing it to consider expanding cost savings needed in its battle with archrival Boeing Co (BA.N), Chief Executive Tom Enders said on Friday.

Airbus, which sells planes in dollars but uses billion of euros worth of equipment, is being squeezed by the dollar's recent slide.

"We have a serious dollar problem," Enders told reporters in the western German city of Bremen. "It should be a surprise to nobody that a dollar in the region of $1.50 (against the euro) causes big problems for our business model."

Airbus's Power8 restructuring plan was based on a euro-dollar rate of $1.30-1.35, Enders said.

"Of course we must think about making adjustments. We're doing that," he said.

"We must fully implement the Power8 programme," he said, referring to plans to shed some 10,000 jobs and sell plants.

A day earlier, Enders called the dollar's rapid decline "life-threatening" for Airbus.

His comments follow word this week from Airbus parent firm EADS that it will decide on sales of manufacturing plants in Germany, France and Britain by year's end, sales which have caused concern among unions and governments about job security.

The planemaker announced at this month's Dubai Air Show that it would post record high orders for new planes in 2007, but Enders was quick to underscore the need to now deliver those aircraft on time and on budget as Airbus rebounds from the costly delay of its A380 superjumbo.

The dollar slumped to a record low against the European single currency on Friday amid growing expectations that the U.S. Federal Reserve will cut interest rates again next month.