Row sees Airbus delay restructuring

Airbus parent EADS today postponed a major restructuring announcement planned for tomorrow.

Airbus parent EADS today postponed a major restructuring announcement planned for tomorrow.

The company said its European political backers could not agree on how to share out construction of its future A350 aircraft.

The surprise statement exposed continued rifts among the four countries where Airbus plants are based - Britain, France, Germany and Spain - as the planemaker prepares to cut up to 10,000 jobs or a fifth of its workforce.

The cuts are part of a restructuring in the wake of cash shortages triggered by delays to the company's A380 superjumbo.

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In a rare act of public brinkmanship, Airbus chief Louis Gallois challenged the four countries to end recent squabbling and cancelled union and press briefings on his "Power8" restructuring programme.

Trouble in wiring the A380 superjumbo has delayed the plane's debut and stripped almost €5 billion ($6.6 billion) from Airbus's expected earnings in coming years, forcing the company to restructure. The weak dollar has also hit Airbus.

Analysts say Mr Gallois's restructuring is expected to involve heavy job cuts and plant sales to streamline the company. Selling plants is a step rival Boeing has already taken.

Governments in the four European partner countries have made it plain they want any job cuts spread evenly.