Airbus plans to cut 80 percent of subcontractors

AFP ^ | Nov. 6, 2006

[Righty_McRight]

PARIS (AFP) - European aircraft maker Airbus plans to reduce by 80 percent the number of subcontractors used by the company as part of a vast restructuring plan aimed at reducing costs, a company spokesman said.

The number of subcontractors is to be cut from nearly 3,000 to about 500, the spokesman said, confirming a report in the Financial Times Deutschland published on Monday.

The group, based in Toulouse, southern France, also plans to cut its administrative costs by 900 million euros (1.14 billion dollars) in total by 2010 and its supply costs by 350 million euros over the same period, the spokesman said.

He added that the number of logistics facilities used by the company would be reduced from 80 to between four and eight.

Airbus announced in October that it planned to implement a cost-cutting program to compensate for the financial strain caused by delays to deliveries of its sumperjumbo A380 plane.

The A380 program is two years behind schedule and has suffered from higher costs as a result of wiring difficulties in the giant aircraft, which are capable of carrying up to 840 passengers and are set to become the biggest civilian jetliners in the world when they enter service.

Airbus has sharply revised down its profit targets for the A380 project, saying it will now have to sell 420 planes to break even instead of 270 as previously announced.

[diogenes ghost]

All it means is that contractors will be responsible for larger sub-assemblies. Including dealing with sub-contractors, assembly, inspection, etc. Far less work then needs be done/arranged at final assembly point.

[ryan71]

"420 planes to break even instead of 270 as previously announced."

Wow! Time to play Taps yet?

[RayChuang88]

Before summer, Airbus will announce the end of the A380 program, after two primary customers select the new 747 instead and cancel their orders. Bank on it.

I think at the rate things are going don't be surprised that both Singapore Airlines and Emirates Airlines both decide to "bite the bullet" and cancel their A380-800 orders in favor of a large order of 777-300ER's and 747-8I's.

[Leo Carpathian]

Eurocommie enterprise at work!

[Youngman442002]

Good job...now you just fired a bunch of socialists...but they are still putting together the planes..now lets see..one loose bolt here....minus a screw here...yeah right ..I am getting on one of those planes....

[Lawgvr1955]

Thinking of buying some Boeing stock before it shoots up in a couple months with the announced end of the 380!!!

[tubebender]

Our local TV weather guy came on at the top of the 5 o'clock and said not to worry about the big Plane doing manuvers at a low altitude over Humboldt Bay. He said Boeing was testing some new plane and came here because the weather is bad in Seattle.


The photo he showed was a KLM clad behemoth and said they were around 3000 feet and to stop callinn 911!

I didn't see or hear it which is unusual for me

[razorback-bert]

Even more Euro unemployment.