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Airbus Anounces Galois As The New CEO At Airbus  
User currently offline777ATech From Canada, joined Mar 2006, 30 posts, RR: 0
Posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10753 times:

http://www.iht.com/articles/ap/2006/.../business/EU_FIN_France_Airbus.php


Where there is smoke, usually there is fire. Airbus has made official what was a hot subject of debate on this forum for the last few days.
Mr Streiff is gone.

72 replies: All unread, showing first 25:
 
User currently offlineRichardPrice From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10764 times:

Quote:

EADS has announced the resignation of Christian Streiff as Airbus Chief Executive Officer and member of the EADS Executive Committee with immediate effect on Monday.
The EADS Board of Directors has appointed EADS Co-CEO Louis Gallois as Airbus CEO with immediate effect. Louis Gallois will remain Co-CEO of EADS.

The non-Airbus divisions will report to EADS Co-CEO Tom Enders in the future.
The Board of Directors once more underlined its unanimous support for the Power8 programme as decided on 3 October, 2006 as well as for the immediate implementation of the A380 recovery plan. It will take its decision on the A350 XWB in the next weeks.

http://www.eads.com/web/lang/en/1024.../OF00000000400004/8/99/513998.html


User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 2, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10763 times:

Good luck to him - not a bad choice,since he knows the aviation business from his days in Aerospatiale..


Please respect animals - don't eat them...
User currently offlineAndesSMF From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10661 times:

Hopefully NOW things will move forward at Airbus.

User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 4, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10617 times:

Quoting AndesSMF (Reply 3):
Hopefully NOW things will move forward at Airbus.

I'm not holding my breath. Apparently telling the Germans that their parts don't fit out in the factory is equivalent to handing in your resignation at Airbus....sheesh.


 crazy   crazy   crazy   crazy 


User currently offlineLeskova From Germany, joined Oct 2003, 6075 posts, RR: 70
Reply 5, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10491 times:

Quoting Dougloid (Reply 4):
Apparently telling the Germans that their parts don't fit out in the factory is equivalent to handing in your resignation at Airbus....sheesh.

What a quality comment...  Yeah sure

Whats being said about Streiff (and, mind you, not just from the German side... but don't let that influence you) is that he lacked even basic diplomatic skills (which do help in any type of negotiations), that he was acting like an emperor controlling his empire instead of the head of a company with shareholders to report to, and that he reacted extremely bad to any type of criticism of his plans.

Sorry, but after reading several articles about his 'style' of leadership (at both Airbus and at Saint Gobain before that, I'm quite convinced that EADS is better off without him.



Smile - it confuses people!
User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 6, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10485 times:

They sure have a huge mess on their hands at Airbus.


One Nation Under God
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 7, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10441 times:

Quoting Dougloid (Reply 4):
'm not holding my breath. Apparently telling the Germans that their parts don't fit out in the factory is equivalent to handing in your resignation at Airbus....sheesh.

Streiff had to leave because of his undiplomatic way to present his program,his unwillingness to agree on an in-depth investigation of the financing of the Airbus Military Transporter program and his apparent lack to come to grips with Enders and Gallois.



Please respect animals - don't eat them...
User currently offlineAstuteman From United Kingdom, joined Jan 2005, 10012 posts, RR: 96
Reply 8, posted (7 years 10 months 4 weeks 1 day 17 hours ago) and read 10297 times:
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Quoting Beaucaire (Reply 2):
Good luck to him - not a bad choice,since he knows the aviation business from his days in Aerospatiale..

Sorry to hark back to my programme's experiences, but there may be a relevance.

To make the major structural changes that were required to turn the Astute programme around needed a CEO who carried a lot of weight with BOTH the business AND the customers.

Humbert seemed to have had weight with the customers, but not the organisation.
Streiff doesn't appear to have had either.

Ironically, as an industrialist, Streiff's answers are probably the right ones, but you'll NEVER tell airliner builders that they're "crap at building airliners" (metaphorically), and have them listen, unless you're an airliner builder, and a Big Daddy of an airliner builder at that.
They WON'T like it.

Quoting Leskova (Reply 5):
he was acting like an emperor

Yep - that was one of the comments we got with one of our short-term CEO's  Smile

We needed someone who, when he said we needed to tear the programme apart and rebuild it, the customer believed, and the business couldn't criticise, because of his experience.

The requisite MD was the third attempt in 12 months (and the 5th attempt in 18 months, 'cos he resigned and was then asked back. He's still there 3 years later...  Smile )

Is Gallois the man?
I would assume he has the gravitas within the organisation to make the necessary changes.
Will he have the courage, drive, and conviction?

Be interesting to see.

Regards


User currently offlineTexfly101 From United States of America, joined Jan 2006, 351 posts, RR: 0
Reply 9, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 10160 times:

Quoting DAYflyer (Reply 6):
They sure have a huge mess on their hands at Airbus.

This is a quote from Time Europe article by a German analyst:

Airbus, a four-nation consortium backed by millions of euros of taxpayers' money, was once hailed as a model of European industrial cooperation. In fact, its structure, which distributes management and blue-collar jobs among its various state and private owners, has turned Airbus into a nightmare of corporate governance. It has become an enterprise in which political considerations carry more weight than commercial ones, where horse-trading trumps industrial efficiency, and where the national interests of its partners are balanced so carefully that many operations are needlessly duplicated. "It's very hard for Airbus to free itself from political strangulation," says Ulrich Horstmann, aerospace analyst at Munich, Germany-based Bayerische Landesbank.

as for me, I sure hope they get back on track. To have them follow in the steps of McD, Lockheed, Douglas or any of the others that I truly miss, it would be a sad day for me...to any Airbus employees, keep the faith, hopefully see you in better days.


User currently offlineIkramerica From United States of America, joined May 2005, 21516 posts, RR: 60
Reply 10, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 10114 times:

Quoting Texfly101 (Reply 9):
This is a quote from Time Europe article by a German analyst:

I thought only American A.netters had this distorted point of view that is born entirely of envy...  Wink



Of all the things to worry about... the Wookie has no pants.
User currently offlineEaglewarrior From Barbados, joined Aug 2005, 32 posts, RR: 0
Reply 11, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 10089 times:

"It will take its decision on the A350 XWB in the next weeks."

Maybe we will soon know the future of the A350 XWB! crossfingers 

[Edited 2006-10-09 20:21:13]

User currently onlineStitch From United States of America, joined Jul 2005, 30927 posts, RR: 87
Reply 12, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 10055 times:
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Welp, I guess we'll know by month-end how things are going to start to shake-out on the A380 and A350 programs, as well as any corporate restructuring.

User currently offlineTexfly101 From United States of America, joined Jan 2006, 351 posts, RR: 0
Reply 13, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 10036 times:

I just posted a quote from the same article in the thread "A350 Industrial Launch"...not looking good...really regretful if it goes that way.

User currently offlineCymro From United Kingdom, joined May 2005, 91 posts, RR: 0
Reply 14, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 9942 times:

Quoting Leskova (Reply 5):
Whats being said about Streiff (and, mind you, not just from the German side... but don't let that influence you) is that he lacked even basic diplomatic skills (which do help in any type of negotiations), that he was acting like an emperor controlling his empire instead of the head of a company with shareholders to report to, and that he reacted extremely bad to any type of criticism of his plans.

Sorry, but after reading several articles about his 'style' of leadership (at both Airbus and at Saint Gobain before that, I'm quite convinced that EADS is better off without him.

Surely if that is well known then it was a poor decision to employ him in the first place. It looks really unprofessional to have such high level changes in such a short space of time.

Maybe he was being to direct for the multinational internal politics of airbus.

Unfortunately I feel that when you have such levels of agenda in a firm with massive problems you need somebody to grab the bull by the horns and tell people how it really is !!!.

If people can not take directness then it will only hinder any rebuild that the company may require.


User currently offlineAndesSMF From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 9943 times:

Quoting Leskova (Reply 5):
Whats being said about Streiff (and, mind you, not just from the German side... but don't let that influence you) is that he lacked even basic diplomatic skills

That's very interesting background. And you are right, a CEO needs to learn diplomacy well. However, w/o knowing the full facts about the situation at Airbus, I am not certain whether a strong hand was/is not needed to perform a quick turnaround.

For some reason, I just had a deja-vu with the rotating CEOs at Boeing before their turnaround.  scratchchin 


User currently offlineWorkhorse From France, joined Jul 2005, 219 posts, RR: 0
Reply 16, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 9852 times:

Not a bad choice.

I, for one, am not really fan of what Gallois has done with SNCF while he was its CEO, but one thing is sure: this is a man who knows how to make a business profitable and at the same time has great diplomatic skills.

The idea of having one of two co-CEO's of EADS managing Airbus and the other one managing all the rest is not bad neither.

Good luck to you, Mr. Gallois !


User currently offlineAirFrnt From United States of America, joined Jul 2004, 2826 posts, RR: 42
Reply 17, posted (7 years 10 months 4 weeks 1 day 16 hours ago) and read 9851 times:

Quoting Astuteman (Reply 8):
Ironically, as an industrialist, Streiff's answers are probably the right ones, but you'll NEVER tell airliner builders that they're "crap at building airliners" (metaphorically), and have them listen, unless you're an airliner builder, and a Big Daddy of an airliner builder at that.

I think that Streiff fell into the very common trap of believing what he was actually told when he took over the company. "Reform the company, Make serious changes, Break Taboos, Fix the A380" only to find out that there is no political will to make that happen, no conesnsus on how to move forward, and by the way, everyone considers you toxic because you spoke truth to power.

I think Streiff's efforts at cost saving were only going to be effective as long as he could call the shots the way he saw them. That's not unusual in the corporate world, look at Branson, or Dr. Z, or any of the other celebrity CEOs. The big problem is that as CEO of Airbus, not only do you answer to EADS CEOS, you answer to the President of France, and his minions.

All that being said, Airbus is coming closer and closer to a sane governance model. Galios has the political capital with at least the french government to make changes. However, I think it is very clear that he won't propose a series of cuts along the lines of what Streiff was proposing. The political backlash is much too strong for that at this point. He is going to have to work out some compromises with the governments to move forward, and figure out ways to cut Airbus's ongoing costs.

One of the things that I don't think has been noted to this point, that really should be is that Airbus's addressable costs are very low. Once you get into the manufacturing process itself, 80% of Airbus's costs are their vendors. Outside of manufacturing there is also Airbus's R&D division. Airbus cutting R&D now could help the company with cashflow, but might put them at a disadvantage in the future.


User currently offlineDAYflyer From United States of America, joined Sep 2004, 3807 posts, RR: 3
Reply 18, posted (7 years 10 months 4 weeks 1 day 15 hours ago) and read 9652 times:

He has his work cut out for him......good luck.


One Nation Under God
User currently offline777ATech From Canada, joined Mar 2006, 30 posts, RR: 0
Reply 19, posted (7 years 10 months 4 weeks 1 day 15 hours ago) and read 9616 times:

Quote from the EADS statement:

"The Board of Directors once more underlined its unanimous support for the Power8 programme as decided on 3 October, 2006 as well as for the immediate implementation of the A380 recovery plan. It will take its decision on the A350 XWB in the next weeks".

It looks like the board endorse Streiff's plan but decided he was too radical and unpalatable to give him the green light to do as he saw fit to fix the problems at Airbus.
Streiff's public coments about the state of affairs at Airbus, the blunt assesment of its business and the dismal prospects for the future if not radically dealing with the issues - were a slap in the face for EADS.
They clearly didn't want that sort of publicity since EADS resembles more a political organisation than an industrial concern.
I think he was the right guy for the job and feel EADS made a huge mistake leting him go. Regardless of what they do now, the public perception is that EADS is not fully commited to make the changes necessarry to regain its health.
Let's not forget why he was brought in in the first place. What does tell you when a business hires an outsider to tell their leaders what the hell is goin on in their back yard?
What we had at Airbus was a clasic culture of denial Streiff was about to change. That clearly didn't seat well with The Board.
I wish Airbus good luck.


User currently offlineMariner From New Zealand, joined Nov 2001, 25173 posts, RR: 85
Reply 20, posted (7 years 10 months 4 weeks 1 day 15 hours ago) and read 9563 times:
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Quoting 777ATech (Reply 19):
It looks like the board endorse Streiff's plan but decided he was too radical and unpalatable to give him the green light to do as he saw fit to fix the problems at Airbus.

Or too neurotic?

This NYT article requires registration, but there are some interesting quotes:

http://www.nytimes.com/2006/10/09/bu...906b6ec33&ei=5094&partner=homepage

"The announcement late today capped three frenzied days of negotiations, during which Mr. Streiff submitted and then withdrew at least one letter of resignation, according to executives."

Translation: do it my way, or I'm taking my ball and going home.

Never resign unless you mean it.

"He was saying, 'I'll come to Munich three times a year and present my case, but otherwise, I want to be left completely alone,' " said an executive at DaimlerChrysler, referring to the German headquarters of EADS in Munich. "People thought it was really strange."

Translation: Paris is where it's at, baby.

It would seem that Mr. Gallois, a Frenchman, will pay more attention to the major German shareholders than Mr. Streiff intended to do.

maring



aeternum nauta
User currently offlineOsiris30 From Barbados, joined Sep 2006, 3192 posts, RR: 25
Reply 21, posted (7 years 10 months 4 weeks 1 day 15 hours ago) and read 9519 times:

Quoting Mariner (Reply 20):
"The announcement late today capped three frenzied days of negotiations, during which Mr. Streiff submitted and then withdrew at least one letter of resignation, according to executives."

Translation: do it my way, or I'm taking my ball and going home.

As the CEO that's his job. To tell his company how to operate. If he can't he's a talking head and SHOULD go home.

Quoting Mariner (Reply 20):
"He was saying, 'I'll come to Munich three times a year and present my case, but otherwise, I want to be left completely alone,' " said an executive at DaimlerChrysler, referring to the German headquarters of EADS in Munich. "People thought it was really strange."

Why, because he wants to run the company and only report on a normal basis like everyother CEO on the face of the planet. Yeah really strange. 3 presentation in germany and 3 in france plus probably one in spain and one in the uk is 8, which is more than most CEOs normally do on a formal basis.



I don't care what you think of my opinion. It's my opinion, so have a nice day :)
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 22, posted (7 years 10 months 4 weeks 1 day 15 hours ago) and read 9518 times:

Quoting Mariner (Reply 20):
It would seem that Mr. Gallois, a Frenchman, will pay more attention to the major German shareholders than Mr. Streiff intended to do.

Streiff was also French. But Maybe Mr. Gallois will be more politically adroit.



"When all is said and done, more will be said than done".
User currently offlineMariner From New Zealand, joined Nov 2001, 25173 posts, RR: 85
Reply 23, posted (7 years 10 months 4 weeks 1 day 14 hours ago) and read 9432 times:
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Quoting Osiris30 (Reply 21):
As the CEO that's his job. To tell his company how to operate. If he can't he's a talking head and SHOULD go home.

They accepted his plan, they are retaining that plan. It is his corporate communciation skills that are in question.

And to resign several times as a bargaining tool suggests a bit of a power trip.

Quoting Osiris30 (Reply 21):
Why, because he wants to run the company and only report on a normal basis like everyother CEO on the face of the planet.

Um - not quite.

Much of the rest of he world has a slightly different system from the uS.

In the US. the CEO is frequently Chairman of the Board as well.

In much of the rest of the world the job is seperated. The board and the Chairman protect to company - and the shareholders - with long term overview.

In other words, the poeple who own the company have a stronger voice than the CEO, or at least equal to him.

The communication between CEO and Board, in many non-US companies - is continuous and ongoing.

mariner



aeternum nauta
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 24, posted (7 years 10 months 4 weeks 1 day 14 hours ago) and read 9431 times:

Streiff managed to put the blame on Hamburg exclusively -not a good way to sanitize a multi-nation/multi political madhouse like Airbus.
Gallois will be more diplomatic in it's approach than Streiff - but not less thorough in it's analysis and action.
There are 10 EADS factories in Germany alone -insulting those employees by blaming them for the shit the A380 is going through was unrealistic.It was the french prime-minister who gave the green-light for Gallois ' appointment this afternoon,after an initial support for Streiff.The new head of Airbus has now to decide to endorse the go-ahead for the A350 industrial program.This is expected to be formally announced within two to three weeks.



Please respect animals - don't eat them...
25 777ATech : Or too neurotic? LOL Perhaps he lost his mind after geting some sense of what he was dealing with. Would any sane man want to tackle the sort of prob
26 BOE773 : So far, at least with Airbus, the Socialist style of operation has proven unworkable in this modern world. One could also lop other small European co
27 Lumberton : IIRC, when the Enron scandal broke, we started reading all sorts of stories about boards "rolling over" to the CEO's whims and not doing their jobs p
28 Mariner : So you are saying that Mr. Gallois (that's two "l's") is not sane? Okay. To be neurotic is not to be insane. ??? mariner
29 Cymro : but if you only have problems on assembly what do you do with factories making the parts? a lot of parts would be made in 12 months and they are not
30 Columbia107 : All indications are that this may happen sooner or later but to say in two weeks time requires an explanation as to the grounds which such remarks ar
31 Glom : Why did Streif have to resign anyway? It's not like he was responsible for the mess Foregeard got the company in.
32 Stokes : Long time lurker/industry analyst/new member here. Another thread today (searching!) cites German report Daimler made over 500M Euro shorting EADS lat
33 LTBEWR : Perhaps Airbus needs to spin off the various facilities in each country as separate companies, but working closely with and each partially owed by Air
34 Post contains images Osiris30 : They say they retained his plan. They also said he was the man for the job and a revised 330 (the original 350) would be good enough, and the 380 wou
35 N1786b : Uhhh Airbus has ONE shareholder now ....EADS. More like France and Germany. - n1786b
36 Ken777 : Apple computer was also in the dumps when they brought Steve Jobs back. Steve J is not likely to win the "Sweetest CEO Award" but he pushed through w
37 Par13del : So here's my question, how much confidence does this build in the EADS / AIRBUS board when: 1. They have serious problems and decide that a new CEO is
38 Atmx2000 : My view is that this change is neutral. Boards should have oversight, and what Strieff was asking for seems unreasonable. On the other hand, there is
39 Cymro : how will this affect already poor airline confidence in airbus?
40 Lumberton : But how? There seems to be a consensus here that Streiff's plan (Power 8) is the way forward. Without the political will to execute, how's he going t
41 Stitch : Mr. Galois is probably much more...cognizent...of the political ramifications behind Power8, in addition to the economic ones, which appears to have
42 Lumberton : Not trying to be facetious, and just for the sake of argument, then what will "Power 8" become: "Power 5-6"? The job cuts of permanent Airbus employe
43 Stitch : While it may very well be difficult (though I do not feel extraordinarily so) to implement some or all of these changes, the fact is EU companies have
44 Mariner : But they are "doing". It does seem possible that Mr Streiff - who made glass - does not know quite as much about aircraft manufacturing as Mr. Galloi
45 UAL747-600 : Well, no matter how you want to spin it, this situation doesn't make current and potential customers more confident in what's going on at Airbus/EADS.
46 Post contains images Dougloid : Hold on a minute there fella. Then you say this: Sounds like you're agreeing with me. Welcome to Bedlam. Interesting about Daimler tossing Streiff to
47 Jdevora : Wasn't this the way that it worked before they decided to only have ONE company?
48 Post contains links Elvis777 : Howdy all, Copuple of links folks might find of interest Peace Elvis777 http://www.iht.com/bin/print_ipub.ph...les/2006/10/08/business/airbus.php http
49 Aircellist : Could it be that EADS really wanted an external look upon Airbus, and that this look could well be beneficiary, after all. event though the onlooker d
50 Post contains links Leelaw : ...Following his resignation yesterday, Streiff told Le Figaro that the "governance of Airbus" would not allow his cost-cutting plan to succeed. "It i
51 Post contains links Leelaw : Departing Airbus Head Cites Clashes With Board PARIS (Associated Press) — The head of Airbus quit Monday after 99 days on the job, saying he hoped h
52 Beaucaire : Gallois has managed to re-structure SNCF in a very efficient way without disruptions and major strikes.Doing that might look simple for a man like Ab
53 Leelaw : In an update to article in the WSJ I linked earlier (Reply #50) are these comments today from Mr. Gallois: ...On Tuesday, the new Airbus chief executi
54 Post contains links Aircellist : Just in case this has not been posted somewhere else, this is an interview of Christiain Streiff, in French. Must run, now, but if it not a double pos
55 Post contains links Leelaw : Flight International has translated the Streiff interview into English: http://www.flightglobal.com/Articles...rning+as+he+leaves+Airbus+CEO.html
56 Lumberton : Beat me to it again, Leelaw! Here's a notable quotable from the article:
57 PEK18R36L : This is NOT a good sign. By such logic, we should credit Airbus' success and Boeing's challenges in the late 1990s and 2000 to a "weak Euro." I worry
58 Lumberton : AFAIK, EADS had hedges in place, and were quite successful. However, most of the hedges have since expired, leaving them more exposed to exchange rat
59 Stitch : On the contrary, EADS hedged absolutely brilliantly - in the billions, if not tens of billions - which allowed them to shoulder the huge rise in the
60 Post contains images PEK18R36L : If they've held off the beast for this long, they've done well indeed. I stand corrected. Thank you, gentlemen. $1.35? I wish. More like $1.26 today,
61 Post contains links Lumberton : Reuters is reporting that EADS states any talk of job cuts is "premature". Who's driving this train? http://today.reuters.com/news/articl...T-AIRBUS-J
62 Leelaw : It's quite telling isn't it. The rationalizing "storyline" coming out of EADS/Airbus is that Mr. Streiff only wanted to conduct the "discussion" on h
63 Pihero : A bit of History needs to re-told, as History has a nasty habit of returns -and people never learn -. This EADS / Airbus case bears an astonishing res
64 Stitch : To be honest, I would hope Airbus would be a bit more...proactive...in determining what jobs need to be cut. I can tell you it was a huge shock to be
65 Poitin : You may well be right, but he may well also be part of the problem. Time will tell. However, he has to regain the confidence of the Airbus customers
66 Dougloid : When I started at DAC we were at 38,000 and at one point reached 47,000 with the contract hires. Remember they were developing the C17 and the MD11 s
67 Post contains links NAV20 : This article (originally Reuter's) contains a number of quotes from Gallois. To my mind they suggest that he has already made a number of commitments
68 Stitch : If the plurality, even majority, of cuts can be made from contract workers, might that not help achieve Airbus' goals? I imagine Airbus is a little "
69 Mariner : Blue collar may not be the areas that need to be reduced. It is not unusual for an organization to grow a top heavy white collar structure. And if th
70 NAV20 : I think we need to bear the calendar in mind, Stitch. EADS' own projection indicates that they only hope to get up to full A380 production (45 per ye
71 Post contains links Leskova : The two things that are currently being reported here are that, first of all, a large part of the reduction in cost will, indeed, be because of job cu
72 Astuteman : A fair point, Stitch. The contract workers will go first, and I understand Airbus employs a fair few of these. We also shouldn't forget that staff wa
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