Is Airbus finally addressing its vexing corporate structure?
European aerospace and plane making giant Airbus is rumoured to be sorting out its messy corporate structure.
According to Reuters which has sources close to matter, Airbus Group SAS will likely merge with the plane manufacturing unit, Airbus SAS, a move that has been on hold for more than 10 years. The news arose from a meeting in Alabama.
The new company, simply ‘Airbus’, would help address a top heavy corporate setup which originates from the establishment of separate aerospace firms, and would cement the leadership of the group in Toulouse, France.
Executive leadership has sprawled across the company with several CEOs running the parent company. In 2013, what was EADS changed its name and effectively granted boss Tom Enders more scope to run affairs. He is said to want to implement a wide-reaching digital programme across the company.
It is thought that this latest move would consolidate his position as CEO of the entire group, with Fabrice Bregier, CEO of the plane manufacturing division, set to become Chief Operating Officer. The plane making unit will become a division of Airbus, rather than remain a separate entity.
Confusing matters more is that the legally listed parent, Airbus Group SE, is based in the Netherlands. There is also some uncertainty as to how many of the 137,000 employees will be affected by any streamlining of the business.
As rumours continue to circle, arch rival Boeing he seen its stock rise by one percent.
Like what you see! Signup for our weekly newsletter