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Airbus Wins Praise For Managerial Changes  
User currently offlineAerospaceFan From , joined Dec 1969, posts, RR:
Posted (8 years 5 months 3 weeks 5 days 7 hours ago) and read 3024 times:

Re-Energized Airbus Could Spell Trouble for Boeing

According to an article posted today at the Seattle Post-Intelligencer Website, the turnover of leadership at Airbus and its corporate parent, EADS, has been positively received by an aviation analyst who praised the aircraft manufacturer for moving quickly to address a highly publicized crisis over a delay in the delivery of the A380 superjumbo airliner. The companies were also faced with an international controversy relating to loss of shareholder value at EADS and investigations concerning the sale of stock by the then-Co-Chairman of EADS, Noel Forgeard.

The article said that, although Boeing could stand to benefit from recent disarray at Airbus, the latter's rapid recuperation might soon pose renewed challenges to the Seattle company in the form of a better-designed successor to the current version of the Airbus A350.

For its part, Boeing has declined to officially comment on developments at its chief competitor in its commercial airliner business.

(Excerpt)

Quote:
"Airbus is fumbling and stumbling and bumbling, and everything is going right for Boeing at the moment, so it's going to take years for Airbus to recover," said aviation analyst Scott Hamilton.

But Hamilton lauded Airbus for moving swiftly getting rid of managers who seemed to be responsible for the snafus. He noted that it took Boeing years to recover from its own production crisis in the late 1990s.

Source: http://seattlepi.nwsource.com/local/6420AP_WA_Boeing_Airbus.html

[Edited 2006-07-04 03:45:41]

21 replies: All unread, jump to last
 
User currently offlineBobster2 From , joined Dec 1969, posts, RR:
Reply 1, posted (8 years 5 months 3 weeks 5 days 7 hours ago) and read 2979 times:

Enron also won praise. The were named "America's Most Innovative Company" by Fortune Magazine six consecutive years, 1996-2001. The point is the experts are clueless, incompetent, or they're scamming us.

User currently offlineAerospaceFan From , joined Dec 1969, posts, RR:
Reply 2, posted (8 years 5 months 3 weeks 5 days 7 hours ago) and read 2969 times:

I suppose that it depends on a number of factors -- not only the individual expert in question, but also his track record. I've not previously heard of the expert cited, but since the Seattle Post-Intelligencer seems to cover Boeing and other aviation-related topics quite a lot, I thought that their article and citation of the expert in question was noteworthy.

There is also the consideration that the expert, Mr. Hamilton, noted that it would take "years" for Airbus to recover. I'm not quite sure that this is necessarily true. I would welcome a fuller explanation in future articles about the probabilities relating to how much the current crisis could affect Airbus.

As for Enron, the less said about that company, the better, in my view. What a disgrace to corporate America it was.

[Edited 2006-07-04 04:28:05]

User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 3, posted (8 years 5 months 3 weeks 5 days 5 hours ago) and read 2899 times:

It's a great shame for EADS and Airbus that this opportunity to establish a responsible management structure was missed. Now we'll have to wait for Airbus/EADS to suffer another management catastrophe before this silly dual-CEO structure is abandoned.  Sad

User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 4, posted (8 years 5 months 3 weeks 5 days 4 hours ago) and read 2859 times:

Apparently the new man, Streiff, has a reputation as a production whiz. Obviously he'll do his best to solve one of the Airbus problems - production delays/inefficiencies like the wiring problems.

But none of the changes made seem to offer any solution to the other problem faced by the company; the lack of competitive products across most of the market range. All the people previously responsible for research, design development, marketing etc. appear to have been kept on.



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineBoomBoom From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 5 months 3 weeks 5 days 4 hours ago) and read 2851 times:

Quote:
The chief financial officer of EADS, said Monday that the beleaguered company will "certainly move to one CEO and one management structure" after tensions prompted the ouster of co-Chief Executive Noel Forgeard over the weekend.

"We will continue with two CEOs for the next few years," Chief Financial Officer Hans Peter Ring said at an investment conference.
http://online.wsj.com/article/BT-CO-...703-708693.html?mod=moj_industries

Next few years?


User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 24
Reply 6, posted (8 years 5 months 3 weeks 5 days 4 hours ago) and read 2851 times:

Quoting Zvezda (Reply 3):
It's a great shame for EADS and Airbus that this opportunity to establish a responsible management structure was missed. Now we'll have to wait for Airbus/EADS to suffer another management catastrophe before this silly dual-CEO structure is abandoned.

Whatever Airbus or EADS do- it will always create your negative comments .....
Can't imagine what trauma you have passed-but try to be a little bit more balanced .Being a fanatic of Boeing does not exclude incompatibility with a neutral assessment of a competitor's management.Dual management is not automatically a recepy for failure if the two guys are top-level professionals.



Please respect animals - don't eat them...
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 7, posted (8 years 5 months 3 weeks 5 days 4 hours ago) and read 2851 times:

Quoting NAV20 (Reply 4):
Apparently the new man, Streiff, has a reputation as a production whiz. Obviously he'll do his best to solve one of the Airbus problems - production delays/inefficiencies like the wiring problems.

But none of the changes made seem to offer any solution to the other problem faced by the company; the lack of competitive products across most of the market range. All the people previously responsible for research, design development, marketing etc. appear to have been kept on.

Interesting to see what will happen during the next few weeks..

fair use excerpt:

"He (Habib Fekih, President, Airbus Middle East)said A350's new design, incorporating several modifications and enhancements according to customer requirements and market needs, will soon be unveiled. "The new aircraft will have more seats than the previous design, and will be as fast, but wider and capable of flying more long range than the competitor. We are confident that the new design will meet the future requirements of our customers," he said.

Insisting that the new management changes or the allegations of insider trading at Airbus would not mar the profile of the aircraft maker thanks to its long terms strategy and vision, Fekih said customer would be judging the company by its recovery plan. Refusing to be dragged into the insider trading scandal, Fekih said the merit of the company should be judged by its product and not by the behaviour of the individuals. "Investigation is going on and we need to wait for its conclusion.""**

**source: http://www.khaleejtimes.com/DisplayA..._July111.xml§ion=business&col=



"Up the Irons!"
User currently offlineLeskova From Germany, joined Oct 2003, 6075 posts, RR: 70
Reply 8, posted (8 years 5 months 3 weeks 5 days 3 hours ago) and read 2788 times:

And just when you (well... at least some) thought, everything was set to continue the way it was, along comes Mr. Hans Peter Ring, EADS' CFO, stating that EADS is heading towards a "one-CEO future"...  Wink

http://www.faz.net/d/invest/meldung.aspx?id=28803329

He still formulates it as a possibility, but maybe the fact that Louis Gallois is set to retire in 3 years could be seen as a hint as to when there'll be no more Co-CEO structure.



Smile - it confuses people!
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 9, posted (8 years 5 months 3 weeks 5 days 3 hours ago) and read 2759 times:

My German's not good, Leskova, but doesn't he say they'll continue with two CEOs for the 'coming years?'

Firstly, surely it's what happens in the 'coming years' that matters? Not what happens in three or more years' time? Secondly, is it at all likely that Chirac's successor will be any less insistent on every German being 'balanced' by a Frenchman?



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineToulouse From Switzerland, joined Apr 2005, 2759 posts, RR: 57
Reply 10, posted (8 years 5 months 3 weeks 5 days 2 hours ago) and read 2742 times:

Quoting NAV20 (Reply 4):
Apparently the new man, Streiff, has a reputation as a production whiz. Obviously he'll do his best to solve one of the Airbus problems - production delays/inefficiencies like the wiring problems.

I don't know much about Streiff, but hope he'll do a good job (to a certain extent I'm sorry to see Humbert gone, but I suppose most of the bad happened during his reign, yet that's unfortunate as I think most the problems were caused by Forgeard. At the head of EADS, Louis Gallois, seems a good choice. He has many ties with the aeronautical industry, having been at the head of Aéropatiale in the past. Then until this weekend of SNCF, the national French railway network, where he has done a lot of excellent work modernising and streamlining the company. SNCF people seemed sad to loose this man, while the reps. of Airbus unions seemed very satisfied and positive regarding this man.

Quoting Zvezda (Reply 3):
It's a great shame for EADS and Airbus that this opportunity to establish a responsible management structure was missed. Now we'll have to wait for Airbus/EADS to suffer another management catastrophe before this silly dual-CEO structure is abandoned.

What is your problem with Airbus Zvezda... why don't you apply for a top position job there as you seem to think you have great insight. I think the reaction has been swift and am confident it will be positive.

Anyway, fingers crossed for Airbus/EADS.



Long live Aer Lingus!
User currently offlineWidebody From Ireland, joined Aug 2000, 1152 posts, RR: 8
Reply 11, posted (8 years 5 months 3 weeks 5 days ago) and read 2636 times:

Quoting Toulouse (Reply 10):
I don't know much about Streiff, but hope he'll do a good job (to a certain extent I'm sorry to see Humbert gone, but I suppose most of the bad happened during his reign, yet that's unfortunate as I think most the problems were caused by Forgeard

Humbert would have gone because he would have been the main contributor to the problems in his previous post.


User currently offlineRichardPrice From , joined Dec 1969, posts, RR:
Reply 12, posted (8 years 5 months 3 weeks 5 days ago) and read 2608 times:

Quoting NAV20 (Reply 4):

But none of the changes made seem to offer any solution to the other problem faced by the company; the lack of competitive products across most of the market range. All the people previously responsible for research, design development, marketing etc. appear to have been kept on.

Maybe because they arent the problem? The decision to go with a partbaked A330 upgrade plan as the A350 would not have been made by the people you think should go, and its proven in the A320 and A330 series that they can make some damn fine aircraft. The problem area has been changed, dont throw the baby out with the bath water.

The A350 decision will be made by the new management over the coming weeks, it was never ever going to be a 'bang, management change, boom hey look new products!'


User currently offlineKappel From Suriname, joined Jul 2005, 3533 posts, RR: 17
Reply 13, posted (8 years 5 months 3 weeks 5 days ago) and read 2602 times:

Quoting Bobster2 (Reply 1):
America's Most Innovative Company

Come on, you can't deny Enron was very creative... when it came to accounting...  Wink

Quoting Leskova (Reply 8):
He still formulates it as a possibility, but maybe the fact that Louis Gallois is set to retire in 3 years could be seen as a hint as to when there'll be no more Co-CEO structure.

Isn't Enders also German? That would be very interesting to see, a German at the head of EADS and a German at the head of Airbus. No doubt the French will oppose that.



L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
User currently offlineArt From United Kingdom, joined Feb 2005, 3398 posts, RR: 1
Reply 14, posted (8 years 5 months 3 weeks 5 days ago) and read 2576 times:

Quoting Zvezda (Reply 3):
It's a great shame for EADS and Airbus that this opportunity to establish a responsible management structure was missed. Now we'll have to wait for Airbus/EADS to suffer another management catastrophe before this silly dual-CEO structure is abandoned.



Quoting Beaucaire (Reply 6):
Whatever Airbus or EADS do- it will always create your negative comments .....
Can't imagine what trauma you have passed-but try to be a little bit more balanced

It's difficult to be balanced about a management setup that has been set up the wrong way for the wrong reasons. You have 1 CEO unless there are very good reasons to do otherwise. EADS has very bad reasons to do otherwise.


User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 24
Reply 15, posted (8 years 5 months 3 weeks 4 days 23 hours ago) and read 2549 times:

My point is that Zvezda has systematically negative posts about issues that are related to Airbus but very rarely (..basically never..) critical comments related to other manufacturers.
It's either he has a problem with the French ( I can join him on some of that specifically when it comes to trade-unions here..) or he dislikes Airbus as an entity-for whatever reason.
I accept people to critizise when there is a valid reason-but give the new top-team in Toulouse the benefit of doubt and allow them to prove themselves .

Some reading:
http://www.businessweek.com/bwdaily/.../feb2005/nf20050218_9649_db045.htm
extract:
"Moreover, the Government Accountability Office, the Defense Science Board, and the Senate Armed Services Committee are continuing to probe what committee Chairman Warner called "this atrocious mismanagement and waste, top to bottom."

For now, Druyun is behind bars, and Sears soon will be, too. But this ugly chapter in Boeing's history is far from ended. "



Please respect animals - don't eat them...
User currently offlineArt From United Kingdom, joined Feb 2005, 3398 posts, RR: 1
Reply 16, posted (8 years 5 months 3 weeks 4 days 23 hours ago) and read 2513 times:

Quoting Beaucaire (Reply 15):
I accept people to critizise when there is a valid reason-but give the new top-team in Toulouse the benefit of doubt and allow them to prove themselves .

There is a valid reason - the management of Airbus is not conducted in a manner most likely to benefit Airbus the most.

Incidentally I make no comment on the appointees - they may be the best choice given the bizarre manner in which it is insisted the company must be run.


User currently offlineLeskova From Germany, joined Oct 2003, 6075 posts, RR: 70
Reply 17, posted (8 years 5 months 3 weeks 4 days 21 hours ago) and read 2454 times:

Quoting Kappel (Reply 13):
Isn't Enders also German? That would be very interesting to see, a German at the head of EADS and a German at the head of Airbus. No doubt the French will oppose that.

The person at the head of Airbus is French - Christian Streiff may look like a German name, but it's not.

Quoting NAV20 (Reply 9):
Firstly, surely it's what happens in the 'coming years' that matters? Not what happens in three or more years' time?

I'd have preferred a quicker transition to one CEO as well, but if it's set to happen in a fixed timeframe, that's at least something.

Quoting NAV20 (Reply 9):
Secondly, is it at all likely that Chirac's successor will be any less insistent on every German being 'balanced' by a Frenchman?

As long as a German heads EADS and a Frenchman heads Airbus (or vice versa), I don't really see a problem...



Smile - it confuses people!
User currently offlineArt From United Kingdom, joined Feb 2005, 3398 posts, RR: 1
Reply 18, posted (8 years 5 months 3 weeks 4 days 21 hours ago) and read 2430 times:

Quoting Leskova (Reply 17):
As long as a German heads EADS and a Frenchman heads Airbus (or vice versa), I don't really see a problem...

I see a continuing problem for the companies concerned if they do not make appointments on merit. As far as I can see, they have no intention of doing this.


User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 19, posted (8 years 5 months 3 weeks 4 days 20 hours ago) and read 2395 times:

It may be relevant that as of early afternoon in Paris, EADS shares are being sold off heavily. They're already down about 1 Euro, to E21.50, and the pattern of sales shows several large (over 100,000 shares) sell orders, which suggests that some institutional investors are bailing out.

The trend may stabilise - one advantage EADS has is that Wall Street is closed today, so American investors may not join in the sell-off. But I'm sure that one of the things the governments concerned were hoping for was that the re-shuffle would restore, or at least stabilise, EADS' share value; and it doesn't look as if that's happening so far.



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineRichardPrice From , joined Dec 1969, posts, RR:
Reply 20, posted (8 years 5 months 3 weeks 4 days 20 hours ago) and read 2395 times:

Quoting NAV20 (Reply 19):
But I'm sure that one of the things the governments concerned were hoping for was that the re-shuffle would restore, or at least stabilise, EADS' share value; and it doesn't look as if that's happening so far.

Thats not going to happen overnight, give it a week for the stabalisation to kick in as an effect of the managerial changes.


User currently offlineArt From United Kingdom, joined Feb 2005, 3398 posts, RR: 1
Reply 21, posted (8 years 5 months 3 weeks 4 days 16 hours ago) and read 2319 times:

Quoting NAV20 (Reply 19):
The trend may stabilise - one advantage EADS has is that Wall Street is closed today, so American investors may not join in the sell-off.

My chart shows a 3.95% fall in EADS shares on the Paris stock exchange today, a gradual drift downwards over the course of the day. I would not like to bet which way it will head tomorrow.

Quoting RichardPrice (Reply 20):
Thats not going to happen overnight, give it a week for the stabalisation to kick in as an effect of the managerial changes.

Hope you're right (you recently bought EADS IIRC). I don't see that anything has been fixed in the longer term though - it's still saddled with a management structure that hinders proper management.


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