Insists on German-French Parity For Airbus Production

German Economics Minister Michael Glos warned Airbus parent company EADS Sunday that it faces the loss of military contracts if large sections of the plane maker's production are transferred from Germany. 

"We insist that Germany remain a high-tech location for Airbus, especially where the manufacture of fuselages is concerned," Glos told Bild am Sonntag newspaper.

"If that isn't the case," added Glos, "Germany would have to reconsider its weapons orders at Airbus parent company EADS. We will not put up with the planned cuts to jobs and high-tech know-how in Germany under any circumstances."

Airbus has been under pressure to cut costs due to financial losses caused by a two-year delay in its twin-deck A380 jumbo airliner and development problems with the smaller A350 model.

Details of the cost-savings program, called Power8, are to be presented to the company's workforce on February 20, according to Reuters.

German trade unions fear EADS could eliminate up to 8,000 jobs in the the country, where the company employs some 22,300 people. Under a proposed Airbus restructuring program, an additional 8,000 supplier jobs could be in jeopardy.

Christian Wulff, premier of the German state of Lower Saxony said Glos will meet Airbus Chairman and EADS Co-Chief Executive Louis Gallois in Berlin on February 13. Chancellor Angela Merkel also plans to meet with Gallois before he announces major cost cuts at Airbus later this month, according to Der Spiegel news magazine.

A spokesperson for the German government declined to comment on the report, but told Agence France-Presse (AFP) that Berlin "would use all means at its disposal to represent the interests of German workers to EADS."

Wulff said that Airbus needed a cash injection.

"We cannot have decisions being made now out of financial necessity. We need to get the money that's missing into the company instead. That can only be done with an increase in capital on the part of all the owners," he said.

On Friday, more than 24,000 Airbus workers, suppliers, and supporters staged protests to fight for the future of the plane maker's seven German plants.

Airbus employs 23,000 full-time and 6,300 part-time people at seven sites in Germany.

In addition to making commercial passenger aircraft EADS subsidiaries also manufacture Eurofighter warplanes, military transporters, helicopters and radar systems.

FMI: www.airbus.com, www.eads.com, www.germany.info/relaunch/index.html