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.

FMI: www.airbus.com