The coming months will likely see a sharp reduction in output from the world's largest plane-makers - Airbus SAS and Boeing! The drop in jet-production is pretty much on the cards for both the aviation-industry billionaires, as they anticipate a second yearly slump in orders this year.

Steven Udvar-Hazy, CEO International Lease Finance Corp (ILFC) said that with the recession dampening travel demand and with the aircraft finances tightening, new orders will be on the fall, and the number of cancellations and suspensions will be on the rise. As such, the leading plane-makers cut down production by as much as 35 percent in 2010.

Since ILFC the leading owner of wide-body fleet in the world, and Udvar-Hazy makes big deals with both manufacturers and the airlines, the man is in an inimitable position to analyze the exact status of the aviation business.

In conversation with the reporters at the Boeing facilities in Seattle, Udvar-Hazy remarked that jet-production "will come down in steps until it reaches equilibrium" with demand, and the alterations are likely by 2009 fourth quarter. The planned production cuts will bring along layoffs of local blue-collar workers.

The pessimism in Udvar-Hazy's remarks is evident as he expects a net negative tally in the order books of both the plane-makers. He said: "Airlines are focused on survival. Ordering new airplanes is not the flavor of the month!"