Says Restructuring Will Happen Sooner Than Streiff
Predicted
It will not take 15 years to turn things around at Airbus,
contrary to what former CEO Christian Streiff said. That word comes
from Louis Gallois... the man who succeeded Streiff Monday,
following the latter's resignation from the
position after just three months on the job.
In an interview with Forbes Tuesday, Gallois (above) added
"painful" job cuts will be necessary on Airbus' road to recovery,
and on its quest to regain parity with rival Boeing. Streiff had
also predicted such cuts... but Gallois says it's a matter of
economics, and not product, that has hindered Airbus's showing this
year.
"Airbus' principal handicap vis-a-vis Boeing is the dollar that
has collapsed," said Gallois. Much of Airbus' expenses are based on
the Euro.
"The A380 is the most modern airplane in the world, and the
range of aircraft that Airbus flies are more modern" than Boeing's
current offerings, Gallois added, while admitting the upcoming 787
presents "a challenge" he's hopeful Airbus will successfully
counter with the newly redesigned A350.
Meanwhile, Streiff also had some things to say Tuesday. Given
rumors of his bitter relationships with board members at Airbus
parent company EADS, however, Streiff's comments to Le Figaro were
not as vitriolic as one may have believed.
Forbes reports Streiff told the French paper he was not
allowed the "necessary operational powers" to do his job at Airbus
effectively -- but he welcomed Gallois' dual roles as Airbus CEO
and EADS co-Chief as "a step in the right direction."
Already, Gallois' appointment as Airbus CEO appears to have
quelled some of the rivalry between the French and German sides of
the European consortium. He has stressed any job cuts would affect
employees in France and Germany equally -- and perhaps more
importantly, Gallois stated A380 production would remain in
Hamburg, Germany, as well as in Toulouse, France.
In the end, it appears Streiff simply wasn't the right man for
the conditions at EADS -- a statement Streiff likely wouldn't
disagree with.
"Enders is happy, because he couldn't stand Streiff, and Streiff
will no doubt be happy to get out before the heat becomes
unbearable," said industry consultant Doug McVitie of Arran
Aerospace. "Jacques Chirac and Angela Merkel [the French and German
leaders] will be happy, because it avoids potential unpleasantness
later this week when they are due to meet."
In perhaps the most telling sign yet of better times ahead,
shares in EADS rose slightly Tuesday following announcement of
Gallois' appointment -- and right now, EADS will take any gain it
can get, even if it was only 6/10 of a percent.