The political row over the future of Europe’s aircraft-maker, Airbus, was finally resolved as French and German shareholders agreed to a restructuring plan likely to lead to 10,000 job losses. The positive signal came when the main German shareholder, DaimlerChrysler, vacated its veto on the restructuring program drawn up by Louis Gallois, chief executive of Airbus. Earlier, DaimlerChrysler had been adamant on the view that the A350XWB should be built partly in Hamburg.
According to reports, Airbus is expected to sell two of its French factories, in Saint-Nazaire and Meaulte, along with two in Germany, Nordenham and Varel. The restructuring plan which has been Power 8 plan, aimed at saving €5 billion (£3.3 billion) by 2010 and €2 billion a year thereafter.
Moreover, moving ahead with the plan will not be easy for Airbus as it still faces turmoil as the plan is expected to meet stiff union opposition in Germany and France, where the issue is already being exploited politically. In the meanwhile, the plan has shocked the UK job market as it announced that about 1,600 jobs are being shed at the UK operations of Airbus over the next four years amid widespread speculations of a reduction of only 1,000 jobs in Britain.
The 1,600 cuts in the UK will be divided between Broughton, in North Wales, and Filton, near Bristol, half of the cut expected to be among temporary and contract staff, and the rest directly-employed workers.
In addition to it, half of all work on future Airbus programs is likely to be outsourced to other companies as part of a radical restructuring. The recovery plan plans to partial or complete sale of six of Airbus’s 16 plants.
