Airbus plan: details on cost cuts, reorganization

10th October 2006, Comments 0 comments

PARIS, Oct 10, 2006 (AFP) - A restructuring plan for struggling aircraft manufacturer Airbus calls for a vast reorganization in production procedures along with job cuts aimed at realizing annual cost savings of EUR 2 billion starting in 2010.

PARIS, Oct 10, 2006 (AFP) - A restructuring plan for struggling aircraft manufacturer Airbus calls for a vast reorganization in production procedures along with job cuts aimed at realizing annual cost savings of EUR 2 billion starting in 2010.

Dubbed Power8 and drafted by former Airbus chief executive Christian Streiff, the plan is to be implemented immediately, according to Streiff's successor, Louis Gallois, co-chief executive at parent group EADS.

Streiff resigned Monday after having been brought in last July to deal with a crisis at Airbus sparked by delays to its key A380 superjumbo program. Fresh setbacks were disclosed last week and the A380 project is now nearly two years behind schedule.

Streiff presented his plan to EADS directors earlier this month. In addition to cost savings, it foresees the generation of EUR 5 billion in assets that can be turned into cash between now and 2010.

It calls for staff cuts based on "age factors" as well as a reduction in short-term production employees.

On the industrial level, the most promising projects for reassessment will be determined by 2007. The sharing out of final assembly line tasks between Hamburg in Germany and Toulouse in southern France will likely be modified.

Airbus will also re-examine operations at its 16 European sites, four of which are in France.

An analysis will also be made of Airbus operations to determine those that are at the core of the business and others that could be sub-contracted.

Copyright AFP

Subject: French news

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