EADS is working out the details of an addition to its Power 8 restructuring plan to cope with the continued decreasing value of the dollar against the euro. Speaking at the European company’s third quarter result conference in Amstersdam, Netherlands, on November 8, EADS CEO Louis Gallois said current hedges are not strong enough to counterbalance the effect on profits.
Germany’s Federal Border Police (FBP) EC 135s and EC 155s will be equipped with the EADS Defence Electronics Hellas obstacle-warning laser radar. An order for 18 systems, announced at ILA in Berlin last month, will augment an earlier one for 25 systems.
The ATR Assembly of Members has named Stéphane Mayer, 44, CEO of the company effective June 1. Mayer succeeds Filippo Bagnato, whose three-year mandate expired at the end of May and who now serves as chairman of the board of directors.
Eurofighter’s first export sale–to Austria–has not been a happy experience, although the company has met all its schedule and performance commitments to date. The first of 18 aircraft is already flying, the second will fly soon, there are four more in final assembly and parts for the other 12 are already in production. The first Austrian pilots have been trained on the aircraft in Germany.
Eurocopter CEO Lutz Bertling said the company is basking “in an exploding market with a booming turnover,” but he sounded a cautious tone with respect to the challenge of delivering its helicopters on time.
Both Boeing and Airbus have come to the Paris Air Show without permanent leaders. EADS has missed its target of June 1 to find a successor for Nöel Forgeard at Airbus and to complete its own management restructuring. Forgeard in effect still acts as CEO of Airbus while serving alongside Thomas Enders as co-chief executives of EADS.
EADS has initiated talks with Korea Aerospace Industries (KAI) with a view to offering the T-50 for the Eurotrainer requirement. A team from EADS visited KAI last month to discuss the modifications that would be necessary to “Europeanize” the advanced trainer that is already in production for the RoKAF, and a return visit by a Korean delegation is planned.
In his swan song as the outgoing chairman of French aerospace industry association GIFAS last month, Philippe Camus called 2004 a “satisfactory year in a difficult environment.” He said prospects for the country’s aerospace and defense firms are brighter for 2005 with greater volumes of new orders flowing in–especially from commercial airliner and business aircraft programs–and exports achieving record levels.
EADS plans to appoint a British board member in the event BAE Systems goes forward with its sale of its 20-percent stake in the European conglomerate, company co-CEOs Louis Gallois and Tom Enders confirmed here during a morning press conference yesterday. Nevertheless, Enders made it clear that he has grown tired of the nationalistic politics that seem so fundamental to any discussion about the composition of EADS and its board.
EADS executives can talk all they want about refusing to allow the Farnborough airshow to dictate the timing of their decisions, but in their current predicament they simply don’t enjoy the luxury of ignoring the opportunity to claw back some credibility here this week.
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