Airbus in talks to sell seven production units
European aircraft maker Airbus is in talks to sell seven production bases in Europe to concentrate on the business of making planes.
By Agencies |
BANGALORE: European aircraft maker Airbus is in talks to sell seven production bases in Europe to concentrate on the business of making planes, chief executive Tom Enders said here.
The seven units manufacture "aerostructures," components and sub-components, Enders told a press conference late Wednesday after opening an engineering centre in this southern Indian city.
Toulouse, France-based Airbus decided after conducting a study last year to "focus on our core business" and divest units it doesn't need, said Enders, on his first overseas visit since being named president and CEO in August. "We decided to sell seven sites altogether to interested industrial partners," he said. "I hope we can conclude (the talks) soon.
"I'm not making any predictions because it is complex," he added. "The criterion (for sale) is not who gives the most money but what is good for Airbus in the long-term."
The aircraft maker also needs to cut its headcount by 10,000, including 5,000 full-time employees and as many part-timers, to boost efficiency, Enders said without giving a timeframe for the workforce reduction.
"This is a tough industry," he said. "It is not just the airlines industry that is facing cut-throat competition.
"The aircraft manufacturing industry has become more and more global," Enders added. "We need to look at our cost structure more thoroughly, that means we have to take tough decisions."
Cost-cuts are required for Airbus to be able to "leapfrog into the next generation of technology that will need a lot of investment," he said.
The seven units manufacture "aerostructures," components and sub-components, Enders told a press conference late Wednesday after opening an engineering centre in this southern Indian city.
Toulouse, France-based Airbus decided after conducting a study last year to "focus on our core business" and divest units it doesn't need, said Enders, on his first overseas visit since being named president and CEO in August. "We decided to sell seven sites altogether to interested industrial partners," he said. "I hope we can conclude (the talks) soon.
"I'm not making any predictions because it is complex," he added. "The criterion (for sale) is not who gives the most money but what is good for Airbus in the long-term."
The aircraft maker also needs to cut its headcount by 10,000, including 5,000 full-time employees and as many part-timers, to boost efficiency, Enders said without giving a timeframe for the workforce reduction.
"This is a tough industry," he said. "It is not just the airlines industry that is facing cut-throat competition.
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"The aircraft manufacturing industry has become more and more global," Enders added. "We need to look at our cost structure more thoroughly, that means we have to take tough decisions."
Cost-cuts are required for Airbus to be able to "leapfrog into the next generation of technology that will need a lot of investment," he said.
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