Airbus says in advanced talks to sell production sites

NEW DELHI, Oct 30 - Planemaker Airbus is at an advanced stage in talks over the sale of production sites in Europe, and will continue to explore cost-cutting measures, its chief executive said on Tuesday.

Airbus, a unit of European aerospace group EADS (EAD.PA: Quote, Profile, Research), is trying to sell all or part of several plants in Europe after delays to its A380 superjumbo rocked the company last year, but the process is taking longer than expected.

"We are in an advanced stage of talks. It would be good for us, good for our employees, good for our shareholders," said Tom Enders, visiting India as part of an industry delegation accompanying German Chancellor Angela Merkel. "So we must be sure we are doing the right thing," he told a news conference.

Airbus, which expects to win 70 percent of an estimated demand for 1,100 aircraft in India over the next 20 years, is also looking at other ways to save money, Enders said.

"It is very important, particularly with the dollar weakening as it has been," he said.

"Job cuts are a part of it, but what's also important, if not more important, is improvement in our processes. We have to look at ways to improve our manufacturing process, make it more efficient -- right from the design and development stage, and improvements in our procurement and supply chain," he said.

France's AMF market regulator is investigating both suspicions of insider trading and EADS' financial communication. Le Monde newspaper reported at the weekend that the regulator had decided to widen its probe into the alleged insider dealing.

Enders said he had "no update" on the regulator's probe.

Airbus was in discussions with national carrier Air-India [AI.UL] for orders for its jumbo A380, and estimated it needed 10-12 aircraft which could be delivered from 2011/12 if the order was placed soon, said Chief Operating Officer John Leahy.