ENDERS
PARIS, France (AP):
Airbus parent company European Aeronautic Defence and Space (EADS) yesterday announced the resignation of the European plane maker's Chief Executive, Christian Streiff, and named one of its own co-chief executive officer to replace him.
EADS company said in a statement that Streiff will be replaced by Louis Gallois, who will combine the top job at Airbus with his current role as joint head of the Franco-German defence group.
As part of the reshuffle, EADS' German co-CEO Tom Enders will no longer have direct managerial responsibility for Airbus, the statement said.
A fresh blow
Streiff's departure deals a fresh blow to Airbus as it struggles to limit the damage from a costly two-year delay to the flagship A380 super-jumbo jet.
The 52-year-old former Saint-Gobain executive took over as Airbus CEO just over three months ago, replacing Gustav Humbert - who was ousted along with EADS co-CEO Noel Forgeard as a result of the A380 production crisis.
Streiff drew up a cost-cutting turnaround plan for Airbus that enjoyed strong support from EADS directors, but he clashed repeatedly with the board over how the plan should be implemented and how much control he would personally exercise, according to three officials familiar with the discussions.
Streiff wanted to report to the parent company on a quarterly basis and have final say on Airbus appointments, while senior EADS executives including Enders de-manded closer oversight, according to the officials, who asked not to be named because the discussions were confidential.
Tightening supervision
EADS owns 80 per cent of Airbus and is tightening up supervision of the civil jet unit as it acquires the remaining 20 per cent from Britain's BAE Systems PLC.
Earlier yesterday, Gallois met with French Prime Minister, Dominique de Villepin, and Finance Minister, Thierry Breton, and a spokesman for President Jacques Chirac said the head of state was following the situation closely. Restructuring at Airbus is on the agenda for Thursday's Franco-German summit, when Chirac and Chancellor Angela Merkel are to meet in Paris.
Shares in EADS Co. closed 1.3 per cent lower at euro20.16 (US$25.41) in Paris ahead of the announcement.
