Airbus has unveiled a sweeping reorganization plan, known as Power8, targeting annual savings of 2 billion euros (2.5 billion dollars) by 2010, along with the generation of 5 billion euros in liquid assets over the same period.
The plan was drawn up by former chief executive Christian Streiff, who stepped down on Monday after joining the company last July to address a deepening crisis. His successor, Louis Gallois, co-chief executive of parent company EADS, confirmed the plan would move forward without delay.
The crisis centers on chronic delays to the A380 superjumbo aircraft, which is now running nearly two years behind schedule following fresh setbacks disclosed last week.
Power8 calls for workforce reductions tied to age-based criteria and a decrease in short-term contract staff. On the production side, the division of final assembly work between Hamburg and Toulouse is expected to be revised, and Airbus will review operations across its 16 European sites, four of which are located in France.
The company will also assess which parts of its business are central to core operations and which could be handed to outside contractors. Key industrial decisions are expected by 2007.
Historical summary. TurkishPress restated this wire report, first published in October 2006, in its own words.