(Agencies)
Updated: 2008-01-16 21:10

The result: An overhaul of top executives and a restructuring plan that aims to recoup 2 billion euro (US$2.95 billion) in savings by 2010 and cut 10,000 jobs.

Airbus said Wednesday that it exceeded its target last year with cost savings of 300 million euro (US$444 million) and 3,000 job cuts through attrition. Louis Gallois, CEO of Airbus' parent EADS, has said the European planemaker will need additional savings to compensate for the weaker dollar.

"On the basis of the current exchange rate we have to find extra savings from somewhere. We are seriously discussing what this could be," Enders told reporters.

Airbus also plans to continue its "internationalization" by shifting production abroad, Enders said.

Airbus revenue has been hit as the slide erodes the dollar sale price of its planes.

EADS blamed the slump in the dollar and delays with the A400M military transport aircraft for a third quarter net loss of 776 million euro, compared with a loss of 189 million euro in 2006. Full year results will be published until March 11.

Shares in EADS were down by 4.25 percent in morning trading on Wednesday at the Paris stock exchange, at 17.79 euro (US$26.48) a share.

Airbus' 2007 net order figure did not include all orders for the new version of its planned A350, a midsize, long-range aircraft that it has redesigned and redubbed the A350 XWB.

Airbus said the A350 XWB clocked 292 firm orders in 2007.

Airbus was forced to come up with new plans for the A350, which competes with Boeing's 787 Dreamliner, after customers ordered a costly redesign that pushed back production. Enders said engineers should fix a specific design for the A350 XWB in the second half of this year.

Boeing is facing its own problems with the 787, which has already been hit with two delays, most recently last October, when Boeing said supply chain and assembly line problems had forced it to push back flight testing until March.

The Wall Street Journal, citing unidentified sources familiar with the 787 program, reported Tuesday that the 787 likely will not begin flight testing until June. Boeing spokesman Peter Conte declined to comment on the report.

   1 2   

   1 2