Turbulence at Airbus
October 10, 2006
A day after taking over as head of Airbus, Louis Gallois announced job cuts and reorganization may be needed to rescue the troubled European aircraft company.
Gallois -- who is also co-chief executive of the parent group EADS -- replaced Christian Streiff on Monday. Streiff quit after 100 days on the job. But board members didn't back Streiff's plans for reshaping the company, sources close to the firm said.
Yet both Streiff and Gallois agree that Europe's larges aerospace company needs an overhaul.
Gallois told Europe Radio 1 on Tuesday that his rescue plan will likely include the "elimination of posts, and we will have to pose questions about sites."
Full-scale restructuring would take place after several months of study and be marked by "dialogue and balance," Gallois said.
Airbus has struggled to overcome delays to its flagship A380 super jumbo program as well as problems with a mid-sized and military transport planes. Last week, Steiff blamed the Airbus team in Hamburg for the problems with wiring installation that pushed the A380 two years behind schedule.
Germany worried
Germany could bear the brunt of any factory reorganization since 10 of the 16 Airbus European plants are based there.
"It's important to us that German factories be treated equally in view of current difficulties," German Finance Minister Peer Steinbrück told reporters.
The management turmoil within Airbus has caused Franco-German tensions ahead of an EU summit on Thursday. French President Jacques Chirac and German Chancellor Angela Merkel are expected to discuss Airbus reorganization plans when they meet in Paris this week.