Airbus to fly into profit in 2008

3rd May 2007, Comments 0 comments

FRANKFURT, May 3, 2007 (AFP) - Embattled European aircraft maker Airbus will return to profit in 2008 after two years of heavy losses, the finance director of its parent company EADS predicted in a German press interview on Thursday.

FRANKFURT, May 3, 2007 (AFP) - Embattled European aircraft maker Airbus will return to profit in 2008 after two years of heavy losses, the finance director of its parent company EADS predicted in a German press interview on Thursday.

"According to our current forecasts, Airbus is going to make a net operational profit in 2008," Hans Peter Ring told the Boersen-Zeitung.

Airbus suffered an operating loss of 572 million euros (778 million dollars) in 2006, mainly because of problems with the construction of its new A380 superjumbo which is two years behind schedule.

Ring said the manufacturer would likely sustain a loss this year roughly similar to that of 2006.

Airbus in 2005, its reported operating earnings of 2.3 billion euros.

Ring said that by 2008, the company would be reaping the benefits of the Power8 restructuring plan, under which 10,000 jobs in Europe will be eliminated over the next four years.

He defended the restructuring measures, which have sparked widespread protests from unions and calls from French presidential candidates Nicolas Sarkozy and Segolene Royal for a rethink, as "important for our survival."

"From our point of view, there is no alternative," Ring said, urging politicians to stay out of the running of the business.

"The statements made by some political leaders during the discussions about Power8 certainly weren't very beneficial.

"Promises that can't be kept only succeed in annoying workers. And that then gets passed on to the management who are expected to come up with solutions," Ring said.

Airbus' results have contrasted sharply with those of its US rival Boeing, which made a comeback last year after spending five years behind its European rival in the battle for new orders.


Copyright AFP

Subject: French news

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