Airbus restructuring plan to come by early March

23rd February 2007, Comments 0 comments

PARIS, Feb 22, 2007 (AFP) - EADS, the parent company of plane maker Airbus, said Thursday it would make a decision on the details of its controversial restructuring plan for Airbus by early next month.


PARIS, Feb 22, 2007 (AFP) - EADS, the parent company of plane maker Airbus, said Thursday it would make a decision on the details of its controversial restructuring plan for Airbus by early next month.

"The board of directors of EADS will make its decision around the end of February," a spokesman said, adding that the decision would come before the March 9 release of EADS' full year earnings.

Airbus was forced to cancel a presentation of the plan earlier this week, due to disagreements between the core French and Germany shareholders of the European Aeronautic Defence and Space Company (EADS), reportedly centered on where expected job cuts will fall.

French Prime Minister Dominique de Villepin said this week that the restructuring would cost 10,000 jobs.

But a German government spokesman said details of cuts and closures were still only "speculation."

The plan was expected to be discussed by German Chancellor Angela Merkel and French President Jacques Chirac at a meeting on Friday.

The rescue plan, arising from problems in the A380 superjumbo airliner programme, has already been in suspended animation for four months due to wrangling between German and French interests over where cuts will fall.

On Monday, the company suddenly delayed an announcement due on Tuesday on how the plan would work, citing conflicting national interests, leading Airbus to say the plan was urgently needed.

Airbus chief executive Louis Gallois stressed that Airbus "cannot delay any longer" over the plan to save 5.0 billion euros (6.6 billion dollars) by 2010 and 2.0 billion euros per year thereafter.

Copyright AFP

Subject: French news

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