Company Watch - Airbus.

Sep 17, 2007

A power battle at the top of Airbus would undermine efforts to turn round the planemaker, weeks after politicians intervened to restore order at Franco-German parent EADS, analysts say. The statement made by Airbus chief Tom Enders appeared to be an olive branch to Bregier, whose departure would overshadow his own efforts to settle into Airbus, but could also be seen as an attempt to corner the Frenchman into staying by pre-empting the higher EADS decision. Airbus said Bregier would stay in charge of Power8 and run operations, engineering, procurement and the A350 program. Sep 13, 2007

Airbus secured 713 gross orders in the first eight months of 2007, although cancellations reduced the net number to 656, according to the manufacturer's cumulative order data. This compares to Boeing's eight-month gross of 773 with a net figure of 763. However, since Aug. 31 Boeing, which posts its orders weekly, has lifted its tally to 851 gross and 841 net. Those numbers are certain to change significantly before year end with large orders expected from British Airways and Emirates. Sep 13, 2007

All bidders for the Airbus factories at Meaulte and St Nazaire-Ville in France must also apply for risk-sharing contracts on the future A350 jet, meaning they will need to invest in the A350 on top of the factory purchase price in return for a share of profits in the EUR10 billion aircraft program. Sep 13, 2007

European planemaker Airbus Tom Enders re-appointed his number two with broad control of operations on Wednesday, but it remained unclear whether the move had defused another potential row over top management jobs. Airbus has been unsettled by fears that Chief Operating Officer Fabrice Bregier might quit following attempts by Enders to unseat him from the powerful executive committee at parent EADS, according to industry sources who asked not to be named. Enders, who took over Airbus after French and German leaders stepped in to reorganize EADS and end chronic in-fighting in July, proposed he should be the sole representative of Airbus on the EADS executive committee under the simpler new structure. Sep 13, 2007

The new Airbus executive team will comprise nine instead of the previous 12 members, the planemaker said. Also confirmed in their jobs are top salesman John Leahy, and Tom Williams, who heads Airbus programs. Hans Peter Ring continues to run finances at both Airbus and EADS. The management changes are the first of a trio of big decisions awaiting Airbus as it tries to bounce back against a resurgent Boeing, which took back leadership of global aircraft orders with its 787 Dreamliner last year. Airbus chief Tom Enders' management team in place, Airbus will be under pressure to push forward negotiations with French and German unions over 10,000 job cuts in its Power8 restructuring plans. It also aims to choose buyers by October for five of the six factories it has put up for sale in a further effort to cut costs and share the burden of investing in composite materials. Sep 13, 2007

Airbus will outsource 53 percent of is upcoming A350 aerostructure. A source familiar with its strategy said it hoped factory sales would create a new tier of European suppliers with sales of between EUR1 billion and EUR1.5 billion and capable of supporting new investments. But critics say it was Airbus's relentless pressure on its suppliers that damaged the very firms it is now asking for help. Sep 10, 2007

Completing the trio of big decisions, Airbus aims to choose buyers by October for five of the six factories it has put up for sale. They will continue to work for Airbus as it boosts production. The sale of a sixth at Laupheim, Germany, has not started and of the five plants already on sale, three require heavy investment in new composite technology for Airbus's next model, the A350. In return buyers will get a "risk-sharing" stake in the plane. Latecoere and OHB's MT Aerospace are bidding for Meaulte in France and Nordenham in Germany respectively, but both need a capital boost to take part. In Britain, GKN wants the third A350 plant at Filton in western England. In a surprise move in Germany, family engineering firm Voith emerged last month as a challenger for Nordenham and sister plant Varel on condition it can add Augsburg to the list. This is an EADS military site, though its biggest customer is Airbus. Spirit Aerosystems of the United States is mounting another strong challenge for the five main plants being sold despite union doubts over its origins as an ex-Boeing operation. Sep 10, 2007

European planemaker Airbus faces a triple decision over factories, jobs and management in coming weeks that could determine the success of its efforts to hit back at rival Boeing and attract outside investment. First up are management announcements expected this week from new chief executive Tom Enders, with the aerospace industry waiting to see whether number two Fabrice Bregier will stay following another dispute over senior jobs at Airbus' parent EADS. Sep 10, 2007

With Airbus's chief executive Tom Enders' management team in place, Airbus will be under pressure to push forward negotiations with French and German unions over 10,000 job cuts in its Power8 restructuring plans. A French newspaper reported recently the job cuts may be scaled back. Airbus says cost cuts are needed to counter a weak dollar and stay competitive against a resurgent Boeing. Highlighting pressure to reform, France said on Monday Airbus's A400M military plane would be delayed by some months. Sep 10, 2007

Backed by Airbus parent EADS chief executive Louis Gallois, Bregier insisted on keeping the committee post he had held since running EADS helicopter unit Eurocopter and called for a clear division of his and Enders' roles, the industry sources said. An Airbus statement set out broad responsibilities for Bregier effectively handing him control of the planemaker's operations including its next major project, the A350, regarded as crucial for Airbus's future rivalry with Boeing. But it left a question mark over whether it had been decided to leave Bregier in place on the EADS executive committee. Sep 13, 2007

German Chancellor Angela Merkel will host a meeting of EADS shareholders on Sept. 18 to discuss Airbus's Power8 restructuring program, a German government spokesperson told media. DaimlerChrysler, which owns a 15% stake in EADS, will be a key player at the meeting, which is expected to focus on Airbus's German plants at Nordenham, Laupheim, and Varel and EADS' plant in Augsburg, all sites that EADS/Airbus is considering selling outright or turning over in part to investors. The fate of those sites has been a contentious political issue in Germany, where concerns have been expressed about possible job cuts and foreign ownership. Sep 11, 2007

Airbus's Fabrice Bregier, who spearheads a restructuring seen as crucial to Airbus's recovery from losses and currency problems, is seen at odds with Enders over places on the EADS executive committee. Chief executive Tom Enders has made a move to represent Airbus alone on the panel, where Bregier sits as a former chief of sister company Eurocopter and a top figure at Airbus, industry sources said. But Bregier sees the post as a pre-requisite for staying and wants a clear division of roles, industry sources added. Talks continue but Enders may prefer to avoid further disruption as Airbus recovers from delays to its A380 superjumbo. Bregier is backed by EADS Chief Executive Louis Gallois, sources said. Airbus officials declined to comment. Sep 10, 2007

Aviation Capital Group signed a firm contract with Airbus for six A319s, 15 A320s and four A321s collectively valued at $1.8 billion. The lessor already had 96 A320 family aircraft in its portfolio or on firm order. MD and CEO Stephen Hannahs said the decision to order more was based on "high customer demand." No delivery dates or engine choices for the new orders were announced. Sep 11, 2007

CIT Group a provider of commercial and consumer finance solutions, announced that CIT Aerospace and Etihad Airways have entered into contracts to lease two new Airbus A330-200 aircraft powered by Rolls-Royce Trent 772B engines. Deliveries are scheduled to take place in January and March 2009. CIT Aerospace owns or finances a fleet of more than 300 aircraft around the world, with approximately seven percent of its fleet located in the Middle East. With the completion of this order, Etihad becomes CIT Aerospace's largest customer in the Middle East. Sep 12, 2007

CSA Czech Airlines announced the conversion of eight Airbus A319 options stemming from its 2004 order for delivery in 2011-12. CSA, which is replacing its Boeing 737s, already has taken delivery of six A320s and two A319s. Four more A319s will arrive in 2008. Sep 13, 2007

CSA Czech Airlines said it had decided to retain a long-haul fleet, and may add the twin-aisle Boeing 767 or Airbus A330 planes to its portfolio if it finds affordable ones with the desired configuration on the market. CSA, a member of the Sky Team alliance which also includes Air France-KLM , Delta Air Lines and Alitalia, operates a fleet of 50 mostly medium-haul aircraft. Sep 13, 2007

Etihad Airways will lease two Trent 772B-powered Airbus A330-200s from CIT Aerospace, with delivery scheduled in January and March 2009. Etihad CEO James Hogan said the aircraft will have a "major impact" on both its short- and long-haul networks. Sep 11, 2007

Flyington Freighters selected Pratt & Whitney PW4000-100s to power its fleet of 12 Airbus A330-200Fs. The contract, valued at $715 million, covers installed and spare engines for 12 firm aircraft that will begin delivering in 2009 and an exclusive long-term service agreement. Sep 10, 2007

Singapore Airlines is promising a new class of premium travel that it calls "beyond first" for its Airbus A380 scheduled to be handed over in Toulouse the morning of Oct. 15. Unlike Qantas, which unveiled its A380 product in July, SIA has been tight-lipped on the details except to say that some elements are the same as its 777-300ER interior. It has said that the aircraft will be in a 471-seat configuration, but no breakdown of classes or seat pitch figures have been given, with very few in the airline privy to the details. Sep 11, 2007

Brazilian carrier TAM has taken delivery of its first two Airbus A321s which will seat 220 passengers in a single-class layout. Sep 12, 2007

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