German, French Politicos Meet To Ease Crisis

Some details of the stalled "Power8" restructuring program for Airbus emerged Tuesday, as French minister Dominique de Villepin told the Financial Times the controversial plan called for the elimination of some 10,000 jobs -- almost 20 percent of Airbus' worldwide work force.

As Aero-News reported, Airbus parent company EADS scrapped Tuesday's planned announcement of the program when French and German shareholders disagreed on distribution of work on the planemaker's upcoming A350 XWB widebody jet. The abrupt cancellation shed light on what many analysts believe is everpresent conflict between factions in the pan-European consortium.

Politicians on both sides tried to downplay the severity of the crisis. On Friday, German chancellor Angela Merkel is scheduled to meet with French president Jacques Chirac. The meeting was planned ahead of time... but it's likely Airbus will dominate that meeting.

British trade and industry secretary Alistair Darling will meet with his German counterpart, Michael Glos, early Wednesday. Louis Gallois and Tom Enders -- the French and German co-CEOs of EADS, respectively -- are also scheduled to meet to discuss a possible solution.

"Their teams are talking again already," said an EADS official in Germany, adding a resolution in the conflict could come as early as next week.

Airbus needs to cut $2.8 billion in annual expenses, in order to give the planemaker the capital needed to develop the A350 XWB -- the planemaker's answer to rival Boeing's upcoming 787. Job cuts and associated plant closings are part of that plan.

The problem lies in where the axes will fall. The Times reports two machinist plants in Germany are believed to be on the chopping block -- and if German workers need to be laid off, officials in that country want their French counterparts to feel some of their pain, as well.

FMI: www.airbus.com