Airbus suppliers are ready to keep up with a possible leap in future production to 48-50 narrowbody jets a month, while warning that some of the industry's smallest parts manufacturers are facing a lending squeeze from French banks.

Airbus, the world's largest civil jet maker ahead of Boeing, is producing 38 A320-family jets a month from European plants and aims to increase this to 42 a month by the end of 2012 as global orders defy concerns of an economic slowdown.

It is considering raising the goal to 44 aircraft a month and has started gauging the industry's readiness to lift output to as many as 50 a month to meet persistently high demand.

The chief executive of French aerospace supplier Zodiac, Olivier Zarrouati, said most suppliers in existing jet programmes could boost output without major new investment.

Asked whether the industry could keep up with Airbus production of 48 or 50 A320-family jets a month, Zarrouati said, "We polled the supply chain after the summer and yes, it is very possible".

But speaking as head of the GEAD association of French aerospace suppliers, he expressed concern over the funding avaiable to some small parts makers.

Some of the industry's smallest suppliers are struggling as French banks scale back lending at a local level, he said.

"It is simply a matter of the banks trying to reduce their balance sheets. Today some of the local bank branches are less ready to offer credit to small companies and are asking for a lot more guarantees," he told Reuters in an interview.

His remarks are the latest evidence of stress in the French banking sector triggered by the euro zone debt crisis and add to suggestions that funding difficulties are filtering into the manufacturing economy.

Most suppliers are unaffected, however, Zarrouati said.

The aircraft industry was rattled last month by signs that once-dominant French banks had halted or reduced lending for aircraft purchases to airlines and leasing firms, but industry leaders said other banks were ready to step in.

Small regional parts manufacturers usually have less access to alternative sources such as foreign banks and credit banks.

A large proportion of Airbus suppliers, such as Zodiac which makes cabin and cockpit systems, also supply its rival Boeing which is also planning to increase production.

Last month Airbus entered talks to buy a majority stake in one of its German suppliers to prop it up after it suffered a liquidity squeeze, Airbus parent EADS said.

The company, PFW, makes tubes for Airbus and Boeing.

The market for narrowbody jets like the Airbus A320 and the Boeing 737 dominates the aircraft industry and is estimated to be worth US$2 trillion over the next 20 years.