EADS plans to end dual management system

LONDON: Franco-german shareholders in EADS would think about ending a dual management system at the embattled aerospace group if a shake-up at its Airbus subsidiary proved successful, a leading British daily reported on Wednesday.

“Everything will depend on whether or not this is effective over the next year,” the newspaper quoted an anonymous source close to French interests as saying. “If it is effective, then (moving to a single management structure) will be an obvious step.”

A second person close to German shareholders said that it was not a “question of if, merely a question of when.” EADS is currently managed by two chairmen and two executives — French and German — under an agreement that created the group six years ago, the newspaper said.

Attempts by the French side last year to push for a single structure were resisted by major German shareholder DaimlerChrysler and the German government, the newspaper said, noting that such a position was still held by Berlin. At the same time, it said, France was hoping the current turmoil at EADS will help to change Germany’s mind.

In an ongoing crisis, Airbus’ chief executive Christian Streiff quit on Monday after just three months in the job. In addition, delays in the firm’s high-profile A380 superjumbo have hit EADS shares and seriously dented its earnings outlook.