Report: EADS Looking Towards Streamlined Management Structure | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **
** Airborne 10.17.14 ** HD iPad-Friendly -- Airborne 10.17.14 **
** Airborne 10.15.14 ** HD iPad-Friendly -- Airborne 10.15.14 **

Mon, Jul 09, 2007

Report: EADS Looking Towards Streamlined Management Structure

Talk Of Replacing Dual Power-Sharing Arrangement With One CEO, One Chairman

A change may be in the offing for management at European Aeronautic Defense & Space Co... and some would say a change is long overdue.

The Wall Street Journal reports there is talk at EADS of removing the dual-chief-executive structure that has defined the aerospace consortium throughout its seven-year history. Critics say that power breakdown -- in which German and French executives share the CEO and Chairman titles, to represent shareholders in those countries -- has stifled efforts to restructure the company.

What remains unclear, however, is whether the plan -- which would retain Germany's Thomas Enders as the sole CEO -- would ease political and nationalist in-fighting between French and German shareholders, or make the situation even worse.

"It's not clear whether French and German shareholders understand what shifting to a lighter management structure, that of an ordinary corporation, means," said an unidentified person close to the talks. "No more direct phone calls to the executives."

Under the plan said to be in the works, EADS shareholders would name a Frenchman as sole chairman of the consortium, presumably current co-Chairman Arnard Lagardere, or former EADS co-CEO Phillipe Camus. The current German co-Chairman, Rudiger Grube, wouldn't remain in that position, according to the unnamed source.

Enders currently shares the CEO title at EADS with Louis Gallois, a Frenchman, who is also chief executive at Airbus. Gallois (below) would keep that role, but lose the co-CEO title at EADS, under the plan.

Ideally, the new management structure would be agreed upon before a planned July 16 meeting between new French president Nicolas Sarkozy, and German Chancellor Angela Merkel. 

Proponents of the one-CEO plan maintain the current management structure at EADS hindered its response to production problems with the Airbus A380, and has slowed the planemaker's ability to respond to the challenge posed by rival Boeing's 787 Dreamliner.
After going through one major redesign, Airbus' A350 XWB isn't due to fly until 2013 -- five years after the 787 is scheduled to enter service.

The hope is that a more streamlined management structure would impart a "buck stops here" mentality at EADs -- with executives better able to meet challenges, and less concerned with who To blame for them.

EADS was formed in 2000 following the merger of several private and state-owned aerospace companies in France and Germany. Shareholders in both countries own 50 percent of the company combined, with interests split down the middle at 22.5 percent apiece. The French government owns the majority of that country's stake, with the remaining 7.5 percent owned by media group Lagardere SCA.

German automaker DaimlerChrysler AG -- soon to be just Daimler -- owns that country's full share in EADS.

EADS reported a first-quarter net loss of $13.6 million this year, according to the WSJ, after posting a $709 million profit for the same period in 2006. Restructuring costs are to blame for the lopsided discrepancy.

FMI: www.eads.com

Advertisement

More News

Klyde Morris (10.20.14)

Klyde Battles The Grammar Psychos!!! FMI: www.klydemorris.com>[...]

Airborne 10.17.14: Enstrom Delivers, Flight School Scandal, NBAA2014

Also: Rare O-46 Rebuild, Valor Unveiled, OK's Anti-Fly-In Airport, FAA Screw-Ups, The first Enstrom Model 480B-G has been delivered to Rick Boswell of New Hampshire with the Garmin>[...]

ANN's Daily Aero-Term (10.20.14): Altostratus

Altostratus This middle cloud genus is composed of water droplets, and sometimes ice crystals, In the mid-latitudes, cloud bases are generally found between 15,000 and 20,000 feet.>[...]

Aero-News: Quote Of The Day (10.20.14)

"I am extremely saddened by the loss of my friend. Peter devoted the last 23 years of his life to this wonderful mission. His faith, dedication, and hard work were something to emu>[...]

AeroSports Update: Sport Performance Aviation Selects Superior XP-320

Superior Air Parts Announces That Sport Performance Aviation Has Selected The XP-320 Engine For The SPA Panther Sport Aircraft Scott Hayes, V.P. Sales and Marketing for Superior Ai>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC