EADS Co-CEO Calls 2006 the Worst Year

But he and EADS said the problems at Airbus would continue to be felt through 2007, warning that it would post another substantial loss in 2007.


"It will take some time, but Power8 will make Airbus substantially more integrated and efficient," the pair said in a statement. "For 2007, our priorities are to drive operational improvements, restore the group's credibility and build a leaner and more dynamic EADS."

Airbus plans to cut 10,000 jobs and spin off or close six of its European manufacturing plants under the auspices of the so-called Power8 plan, which was unveiled Feb. 28.

Three sites making wing and fuselage parts in Britain, France and Germany are earmarked for sale to new investment partners as Airbus follows in Boeing's footsteps by seeking fresh financing for its programs.

Airbus has said potential investment partners include Britain's GKN PLC, Italy's Finmeccanica SpA and U.S.-based Spirit AeroSystems Holdings Inc. - a former Boeing division that was renamed after its sale to investment firm Onex and remains a major Boeing supplier.

The plan has caused political disagreement between Germany and France, with the German government endorsing Power8 as a chance to make the planemaker more competitive, and French politicians looking for ways to circumvent job losses.

"For Airbus ... we will deliver between 440 and 450 airplanes, but Airbus will display another substantial loss in 2007 because of the charges for the Power8 program (and) further costs to support the A380," Gallois said.

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On the Net:

http://www.eads.com

http://www.airbus.com


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