PARIS, June 16: European aircraft manufacturer Airbus is sure to attain 300 million euros in savings this year from its Power8 restructuring programme, chief executive Louis Gallois said ahead of the Paris Air Show.

But Airbus might nonetheless reduce its European production if the euro kept rising in value against the dollar, he added on Friday in comments that were placed under embargo until on Saturday.

“I can confirm we are on track to achieve Power8 on target in 2007,” Gallois told a press briefing.

The goal is “around 300 million euros in savings compared with the accounts for 2006,” he said, adding that it would not all show up in the company's results owing to budget increases for research and foreign exchange effects.

The Power8 plan was drawn up after delays to the Airbus A380 superjumbo jet and A350 programmes slammed the passenger jet maker in 2006, and is to free up five billion euros within the group’s treasury between 2007-2010 along with 2.1 billion euros in annual savings.

As part of the plan, Airbus is to slash 10,000 jobs and sell part or all of six European production sites.

Meanwhile, Gallois stuck by his forecast of 440-450 aircraft deliveries this year, but warned that “things could change if we are hit by strikes” sparked by the controversial restructuring measures.

Gallois focused on problems caused by the euro’s strength against the dollar, since the company produces in large part in the former currency but must sell its planes in the latter.

He stressed that in Europe, the “aeronautic industry which is in head to head competition with the US is hurt by the value of the euro.”

If the single European currency continued to gain in value, “it will oblige us to take new decisions on our industrial set up,” the Airbus chief warned.

In May, Airbus broke ground on a new factory near the Chinese port city of Tianjin, the first outside Europe for the aerospace giant, which has high hopes for China's booming market. —AFP