How much longer can the paradox last: airlines are going bust yet demand for aircraft remains strong? Aircraft makers are increasingly anxious about the financial turmoil shaking their customers and what it all means for them. At least one senior industry official says a sharp downturn in orders is inevitable. But so far, delays in deliveries and canceled orders due to bankruptcies are being offset by airlines looking for more aircraft, says Airbus CEO Tom Enders. That view is mirrored at Embraer, where Mauro Kern, executive vice president for airlines, says replacements and new orders should offset cancellations. What will be crucial is the length of the crisis period, he points out, but that's a huge unknown. Other indicators also defy signs of a crisis. Several Boeing 737-700/-800s, which were turned in early by airlines in financial difficulties, have been leased out at 15-20% above the prior rates, says Steven Udvar-Hazy, president of International Lease Finance Corp. He displays little concern that the downturn will saddle the giant lessor with aircraft it can't place.
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