Weak dollar threatening Airbus

The weakness of the dollar is threatening the survival of European planemaker Airbus, chief executive Tom Enders said in a speech…

The weakness of the dollar is threatening the survival of European planemaker Airbus, chief executive Tom Enders said in a speech last night.

"The dollar's rapid decline is life-threatening for Airbus . . . the dollar exchange rate has gone beyond the pain barrier," he said.

Workers at the firm, owned by European aerospace and defence group EADS, had to prepare for further major cost cuts to help counter the impact of the currency, Mr Enders added.

Airbus's entire business model had to be reviewed as "reasonable processes of adjustment" were hardly possible any more, he said, adding that management was looking at radical measures that would be introduced in coming weeks.

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"There will be no more taboos," Mr Enders said.

Airbus, which complains the weak dollar favours US rival Boeing, is already shedding about 10,000 jobs and selling plants as part of its Power8 restructuring plan after delays to its A380 superjumbo drove the planemaker into a loss last year.