777atech
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Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:11 am

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.
 
RichardPrice
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:13 am

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
 
Beaucaire
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:14 am

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...
 
andessmf
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:19 am

Hopefully NOW things will move forward at Airbus.
 
Dougloid
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:23 am

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 
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
Leskova
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:31 am

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!
 
DAYflyer
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:31 am

They sure have a huge mess on their hands at Airbus.
One Nation Under God
 
Beaucaire
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:34 am

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...
 
astuteman
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 2:47 am

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
 
texfly101
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 3:08 am

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.
 
ikramerica
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 3:13 am

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.
 
eaglewarrior
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 3:15 am

"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]
 
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Stitch
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 3:19 am

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.
 
texfly101
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 3:21 am

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.
 
cymro
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 3:33 am

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.
 
andessmf
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 3:35 am

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 
 
workhorse
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 3:48 am

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 !
 
airfrnt
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 3:49 am

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.
 
DAYflyer
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 4:32 am

He has his work cut out for him......good luck.
One Nation Under God
 
777atech
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 4:37 am

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.
 
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mariner
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 4:47 am

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
 
osiris30
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 4:51 am

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 :)
 
Lumberton
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 4:52 am

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".
 
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mariner
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:00 am

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
 
Beaucaire
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:01 am

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...
 
777atech
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 5:03 am

Quoting Mariner (Reply 20):


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 problems Airbus are facing?
Let's see. Before his arrival, Airbus was hiring like mad to deal with the A380 delays.
He comes on board and has the audacity to suggest that perhaps they should lay off few thousand people since the A380 line is in fact shut down.
You are right, the guy is insane.

[Edited 2006-10-09 22:06:57]
 
BOE773
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:04 am

Quoting Texfly101 (Reply 9):
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.

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 countries into the mix, eg; Italy, Holland, Britain, Denmark etc.
 
Lumberton
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:05 am

Quoting Mariner (Reply 23):
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.

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 properly. Good idea to have this separation of powers.
"When all is said and done, more will be said than done".
 
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mariner
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:06 am

Quoting 777ATech (Reply 25):
Would any sane man want to tackle the sort of problems Airbus are facing?

So you are saying that Mr. Gallois (that's two "l's") is not sane?

Okay.

Quoting 777ATech (Reply 25):
You are right, the guy is insane.

To be neurotic is not to be insane.

???

mariner
aeternum nauta
 
cymro
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:15 am

Quoting 777ATech (Reply 25):
Let's see. Before his arrival, Airbus was hiring like mad to deal with the A380 delays.
He comes on board and has the odacity to suggest that perhaps they should lay off few thousand people since the A380 line is in fact shut down.
You are right, the guy is insane.

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 exactly small, once they run out of space to store parts surely they have to stop!. With airbus struggling can they afford to pay workers for 12 months producing nothing?
 
columbia107
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:22 am

Quoting Beaucaire (Reply 24):
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.

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 are made.
In God we trust
 
Glom
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:31 am

Why did Streif have to resign anyway? It's not like he was responsible for the mess Foregeard got the company in.
 
Stokes
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:32 am

Long time lurker/industry analyst/new member here.

Another thread today (searching!) cites German report Daimler made over 500M Euro shorting EADS lately. Now we learn here that Daimler was decisive voice pitching Streiff overboard. Daimler is huge, and I doubt those engaged on the Streiff issue are tracking their traders, but WTF? If Foegaerd gets the ax for timing his sales, what does this look like? Anglo-Saxon locust capitalism!
 
ltbewr
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:33 am

Perhaps Airbus needs to spin off the various facilities in each country as separate companies, but working closely with and each partially owed by Airbus's owners. Boeing is shifting out production of some major parts of several models, most notably as to the 787, to cooperating but independent sub-contractors in Japan, Europe and elsewhere and this can be a kind of a model for Airbus.
That way, each country would control their respective plants and deal with their respective political issues, and most importantly force them to compete against each other for the components they resepectively make. With such competition, knowing they would lose contracts if they screw up, would put the pressure on them to make sure to make it right. Of course, Airbus central would still be in Toulouse and Hamburg and retain main assembly at those plants.
 
osiris30
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 5:33 am

Quoting Mariner (Reply 23):
They accepted his plan, they are retaining that plan. It is his corporate communciation skills that are in question.

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 would be on time. Sorry but I'm in 'show me' mode with Airbus these days.

Quoting Mariner (Reply 23):
Um - not quite.

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

We do it the same way in Canada  Wink

Quoting Mariner (Reply 23):
The communication between CEO and Board, in many non-US companies - is continuous and ongoing.

It's continuing and ongoing here as well. It's called the phone and conference calls. You don't need to do a full blown presentation every 2 weeks.. if you do you have no time to do anything else but prepare said presentations.

My take is Strieff wanted time to work on the problems, not run around playing politics. The board wouldn't have any of it. A showdown ensued and he blinked first.

I'm not arguing which system is better, but when it's time for action you should focus your time on doing, not talking ad nauseum.
I don't care what you think of my opinion. It's my opinion, so have a nice day :)
 
n1786b
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 6:19 am

Quoting Leskova (Reply 5):
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

Uhhh Airbus has ONE shareholder now ....EADS.

Quoting Beaucaire (Reply 7):
apparent lack to come to grips with Enders and Gallois.

More like France and Germany.

- n1786b
 
Ken777
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 6:50 am

Quoting Leskova (Reply 5):
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.

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 what needed to be done and Apple is on a very profitable roll.

Looks like Streiff had the right plan with Power 8, but not the political tools needed. The ironic part is that Gallois will probably end up carrying out Streiff's plans (for the most part) with a more diplomatic axe - which would probably bode well for Airbus in the long run.

From the NYT article:

"Executives at Airbus said John J. Leahy, the chief commercial officer, just completed a tour of airlines that have already ordered the plane. While none cancelled or cut back their orders, the prospect of more turmoil at Airbus could cause them to rethink their willingness to stick with the company."

Been trying to figure out where he was hiding while this was coming to a head. I figured it was out of the country - wise man!
 
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par13del
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 6:54 am

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 required
2. They hire someone whose management style is only known about
after he has gotton the job and pissed off the constituents?

How could the board not have known what type of person Mr. Strieff was, or even his management style, furthermore, all this occurs after he has been on the job for just a few months?

AndesSMF in reply 3 said hopefully now Airbus can move on, to me that indicates that the just fired CEO was the problem, and we know that was not the case, now if they had a new board??????????
 
atmx2000
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 7:01 am

Quoting Mariner (Reply 23):
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.



Quoting Lumberton (Reply 27):
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 properly. Good idea to have this separation of powers.

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 little reason to be confident in EADS's board, as the members have agendas that are not necessarily aligned with the overall company's interests, but rather with the interests of the individual shareholder groups/governments they represent.
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cymro
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 7:01 am

how will this affect already poor airline confidence in airbus?
 
Lumberton
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 7:21 am

Quoting Ken777 (Reply 36):
The ironic part is that Gallois will probably end up carrying out Streiff's plans (for the most part) with a more diplomatic axe - which would probably bode well for Airbus in the long run.

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 to get it through--regardless of whether or not he wields a "diplomatic axe"? Squeezing suppliers, many located in the Eurozone, could also have the consequences of job cuts. At some point, Airbus must focus on internal efficiencies like consolidating production of like product lines and taking a serious look at whether it needs 16 factories (apologies if I got the number wrong).

When Streiff was appointed Airbus head 3 months ago, he got rave reviews on this forum. Now I read where he acted like an "emperor" and was too uncompromising. No disrespect to Mr. Gallois, but being able to get along with everyone is a nice start, but no guarantee of success. Give Streiff credit for identifying problems and recommending solutions.
"When all is said and done, more will be said than done".
 
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Stitch
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 7:30 am

Quoting Lumberton (Reply 40):
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 to get it through--regardless of whether or not he wields a "diplomatic axe"? Squeezing suppliers, many located in the Eurozone, could also have the consequences of job cuts. At some point, Airbus must focus on internal efficiencies like consolidating production of like product lines and taking a serious look at whether it needs 16 factories (apologies if I got the number wrong).

Mr. Galois is probably much more...cognizent...of the political ramifications behind Power8, in addition to the economic ones, which appears to have been where Mr. Streiff fell short. Where Mr. Streiff may have had an aggressive roll-out for Power8 initiatives, regardless of who's "ox they gored", Mr. Galois will probably be a bit more careful.

I don't believe that the French and or German governments want to be backed into a corner and forced to directly bail Airbus out. Beyond just the economic costs of such action, if they do so, that gives Boeing ammunition to do the same from the US Government, be it though the US bringing WTO action against the EU, picking Boeing for DoD projects like the USAF tanker program regardless of the merit of the EADS offering, or even direct assistance to help launch Boeing products and market them to "allied powers" around the world.

So while Mr. Galois may not implement Power8 as broadly, deeply, effectively, and/or quickly as Mr. Streiff wanted to do, that should not be taken as a sign that Mr. Galois intends to do nothing and let Airbus continue as is, supporting it directly and indirectly as necessary to counterbalance any inherent inefficiencies or shortcomings the "status quo" may cause.
 
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 7:47 am

Quoting Stitch (Reply 41):
So while Mr. Galois may not implement Power8 as broadly, deeply, effectively, and/or quickly as Mr. Streiff wanted to do, that should not be taken as a sign that Mr. Galois intends to do nothing and let Airbus continue as is, supporting it directly and indirectly as necessary to counterbalance any inherent inefficiencies or shortcomings the "status quo" may cause.

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 employees could well be politically impossible to achieve. The consolidation of A380 production in Toulouse could well be politically impossible to achieve. Closing excess facilities could be politically impossible to achieve. (Feel free to substitute "extraordinarily difficult" for "impossible").

It will be interesting to see what Gallois does in the near future. IMO, he needs to hit one over the fence real quick. (Sorry for the baseball analogy).
"When all is said and done, more will be said than done".
 
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Stitch
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 8:03 am

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 to adapt to a changing world just as US ones have. I am sure many politicians are reticent to face the short-term political risks of doing it (just as American politicians were), but eventually the costs of not making the changes are greater then the costs of doing so.
 
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mariner
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 8:24 am

Quoting Osiris30 (Reply 34):
I'm not arguing which system is better, but when it's time for action you should focus your time on doing, not talking ad nauseum.

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. Gallois - who ran Aerospatiale.

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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 8:43 am

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. I think the A350WXB will suffer as a result. I think those that have been standing on the sidelines waiting to order are going to vote 787, SOON!!!

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Dougloid
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 9:54 am

Quoting Beaucaire (Reply 7):
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.

Hold on a minute there fella. Then you say this:

Quoting Beaucaire (Reply 24):
Streiff managed to put the blame on Hamburg exclusively -not a good way to sanitize a multi-nation/multi political madhouse like Airbus.

Sounds like you're agreeing with me.


 Wink  Wink  Wink

Quoting Glom (Reply 31):
Why did Streif have to resign anyway? It's not like he was responsible for the mess Foregeard got the company in.

 thumbsup 

Quoting Stokes (Reply 32):
Long time lurker/industry analyst/new member here.

Another thread today (searching!) cites German report Daimler made over 500M Euro shorting EADS lately. Now we learn here that Daimler was decisive voice pitching Streiff overboard. Daimler is huge, and I doubt those engaged on the Streiff issue are tracking their traders, but WTF? If Foegaerd gets the ax for timing his sales, what does this look like? Anglo-Saxon locust capitalism!

Welcome to Bedlam.

Interesting about Daimler tossing Streiff to the sharks and shorting the stock at the same time...locust capitalism, indeed.


 Wink  Wink  Wink
If you believe in coincidence, you haven't looked close enough-Joe Leaphorn
 
jdevora
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 10:10 am

Quoting LTBEWR (Reply 33):
Perhaps Airbus needs to spin off the various facilities in each country as separate companies, but working closely with and each partially owed by Airbus's owners. Boeing is shifting out production of some major parts of several models, most notably as to the 787, to cooperating but inde

Wasn't this the way that it worked before they decided to only have ONE company?
 
elvis777
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RE: Airbus Anounces Galois As The New CEO At Airbu

Tue Oct 10, 2006 10:36 am

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://www.iht.com/articles/2006/10/10/business/web.1010airbus.php




Here is another one
http://aviationnow.com/avnow/news/ch...t_story.jsp?id=news/aw100906p2.xml

it has this in it:

Airbus also is trying to use the time to ensure that when the A380 finally enters service, it will be a smooth process. Streiff says the first aircraft could have been delivered to Singapore before October, noting the extra time needed to complete the wiring work was 5.5 months, not 10. Instead, the company has chosen to fully investigate operations to ensure that reliability at service entry is "99%."

The manufacturer still expects aircraft type certification by year-end.

SELECTED A380 MILESTONE SCHEDULES
ORIGINAL CURRENT
First flight 12/2005 4/27/2006
First delivery to Singapore Airlines early 2006 10/2007
First delivery to Emirates Airlines 10/2006 8/2008
First freighter delivery (FedEx) 2008 2010

Sources: Airbus and airlines

A380 DELIVERIES, HOW THE NUMBERS CHANGED THIS YEAR
JANUARY JUNE OCTOBER
2006 2 1 0
2007 25 9 1
2008 35 26-30 13
2009 45 40-45 25
2010 45 45 45
Total 152 101-130 84

Source: Airbus

[Edited 2006-10-10 03:56:18]
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Aircellist
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RE: Airbus Anounces Galois As The New CEO At Airbus

Tue Oct 10, 2006 1:43 pm

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 did not have the necessary diplomacy to implement its findings?

As Atuteman said, Streiff may well have brought over an industrial point of view that no one historically member of Airbus could have. His resignation may be the end of his way of doing things, but whatever he was about to do could very well go on, albeit in modified form.

I know many persons here like to comment about Airbus being sustained by those socialists govenrments in Europe, and bla bla bla, but it has been seen, that state-owned companies in Europe have failed. I believe nobody would want to lose face, so Streiff could not be so much of an emperor (if those rumors are true), but nobody would want to lose face either in letting Airbus sink, yet nobody would want to lose face in handing out much to such an immensely visible company. So, I believe cuts and reorganisation will happen, they will hurt lots of people, but being presented from an insider man will make the medicine more palatable for many... Even though it is about the same pill as devised by the outsider expert.

Just my few cents, by the way...
"When I find out I was wrong, I change my mind. What do you do?" -attributed to John Maynard Keynes

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