Airbus restructuring plan stalled
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
The restructuring plan, known as Power8 is seen as critical to the manufacturer’s future. However, Airbus workers and management in France and Germany have stalled talks.
Power8 was announced on February 28 to counter two-year delays in A380 deliveries and catch up with US rival Boeing.
The setbacks saddled Airbus with its first-ever operating loss and slashed net profit at its parent company EADS to 99 million euros (US$133 million) from 1.676 billion in 2005.
The recovery plan, expected to cost 688 m euros, aims to trim Airbus costs by 30%, largely through eliminating 10,000 jobs over the next four years. Employees and management in France will hold their first meeting on 6 June to discuss the scheme, which has already sparked strikes by Airbus workers in France, Germany, and Spain. Similar talks have yet to be held in Germany. Consultations have already taken place in Spain and Britain.
“It is because of national pride that we have the problem of the A380,” Airbus chief executive Louis Gallois told the International Herald Tribune last month.
Despite its internal turmoil, Airbus appears to be recovering some lost ground, receiving a total 124 orders in the first quarter of 2007.
Comments are closed.