EADS board to meet on costs and superjumbo delay
The board of Airbus parent EADS is expected on Tuesday to decide on a cost cutting programme and assess the impact of the latest delay in its A380 superjumbo plane, which one newspaper report said could now slow 2007 deliveries to just two aircraft.
Airbus said in June it expected to deliver nine A380s next year, down from an original target of 20 to 25. It said last month there would be fresh delays, but declined to be more specific pending the outcome of the board meeting.
A spokeswoman confirmed the company's board would meet on Tuesday, after holding an inconclusive session on Friday, but declined to comment on details. The La Tribune newspaper said the board would meet by videoconference.
An announcement from the firm may have to wait until Wednesday, however, as a meeting is scheduled then with the company's works council and managers.
According to La Tribune, EADS is due to announce it will shift the bulk of A380 production to its Toulouse factory in France. In compensation, its German factory in Hamburg will take over production of the A320 single aisle aircraft and play a lead role in building the new A350 mid sized model which is due to be launched soon.
But Les Echos newspaper said an overhaul of the production process, proposed by new Airbus Chief Executive Christian Streiff four days ago, was seen as too drastic by the company's main shareholders.
DaimlerChrysler has a 22.5 percent stake in EADS, the French state holds 15 percent and Lagardere has 7.5 percent.
The paper said Streiff had threatened to resign if his plan was rejected. EADS had no comment.
COST CUTTING
Trade union sources told Reuters on Friday that the cost savings envisaged by Streiff could be as much as 2 billion euros (1.4 billion pounds) by simplifying the production process.
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