Needs To Adapt To Survive Power8 Cutbacks

Airbus' problems are compounding. Amid delays of their flagship A380, the loss of over $700 million last year, plant closures and wildcat strikes throughout Europe, the company is also in a furtive search for an industrial partner to assist in the wing factory in its Filton Plant near Bristol.

As ANN reported, Airbus -- already beset with a series of delivery delays in its flagship A380 program -- suffered further losses last year due to its current method of pricing production costs in euros, but its aircraft sales in US dollars. That proved to be an advantage to the European planemaker in the past... but Airbus saw steep losses in recent economic conditions.

Airbus has said,the Power8 restructuring plan will enable them to face very substantial challenges by providing cost-cutting measures, the ability to transform the Airbus business model and to develop a global network of partners. It will allow Airbus to devote its resources to core activities and eliminate inefficiencies within its current structure. This transformation is said to happen progressively over several years and includes the further extension of Airbus' global footprint.

This week, Iain Gray, the Managing Director of Airbus, UK has asked the UK Government for increased support for Aerospace Research and Technology and is seeking additional assistance from Suppliers and "risk sharing partners".

The Belfast Telegraph reports that several organizations are being courted by Airbus, including GKN, a UK Engineering group with heavy expertise in composite structures for the aerospace industry and Finmeccanica of Italy, which owns several aerospace companies, including Westland, Bombardier and Spirit.

According to Airbus, 13,000 people are employed directly by them at plants in Filton and Broughton, North Wales. And a total of 135,000 British jobs are dependent on the continuation of these programs.

FMI: www.airbus.com