She really needs to eat something.
Posted on 11/25/2006 6:59:33 AM PST by lowbuck
Shareholders in the Franco-German aerospace group EADS are at war after the Paris government said it wanted to increase its stake in the company to fund development of a new long-range A350 aircraft for its Airbus division.
EADS cancelled a board meeting yesterday when France indicated it would block a proposal by the company's two main industrial investors to raise a substantial amount of the aircraft's €10bn (£6.78bn) launch aid from the capital markets.
Giving France a higher stake in EADS risks upsetting the delicate political and commercial balance. The French state and Lagardère own 29.99pc through a holding company. DaimlerChrysler owns 22.9pc, and the Spanish government 5.48pc. The rest of the shares are in free float.
A source said France wants to raise its holding by up to 15pc. DaimlerChrysler has already said it wants to reduce its stake and the Bonn government is trying to ensure the shares are placed with German institutions. The German government has said it does not want to buy a direct stake in EADS.
EADS is in financial crisis because of delays and cost overruns on Airbus's A380 super-jumbo jet. The problems have sparked a wholesale review of Airbus operations, and a report next year is expected to recommend factory closures.
If France has the upper hand in the EADS boardroom, Germany fears it could be forced to bear the brunt of any cut-backs.
The Toulouse-based Airbus believes it must fund the development of its proposed A350 extra wide body (XWB) passenger aircraft to help meet the challenge from a resurgent Boeing.
The British government is expected to be asked to provide some launch aid for the A350 because of Airbus's extensive UK interests. The company employs 12,000 people in the UK, mostly making aircraft wings. However, any launch aid is likely be linked to promises that Airbus does not cut back its UK manufacturing sites.
This week Airbus executives were in London to set out the company's long-term market outlook, which sees demand for more than 5,000 mid-sized planes like the A350 over two decades.
The executives said a decision on whether to press ahead with the A350 would be made before the end of November. Yesterday neither EADS nor Airbus would comment on the matter.
Although Airbus received some orders for earlier versions of the 250-seater A350, the new XWB model, unveiled in July, has seen no contracts. The aircraft is designed to compete with Boeing's 787 Dreamliner, which has 432 firm orders.
ping
The problem is that no one in the consortium wants to make the right wing.
Funny, Very Funny!!!
There is plenty, oceans of investment money in the world. Furthermore there a true and great need for a second major aircraft maker. So, Airbus should have no trouble getting investment money, except private markets want efficiencies and profit through fair control of their investments in the company. Something France, Germany and Great Britain won't allow. So we get the worst of all worlds, bad economic decisions hurting the aircraft economy in Europe and taxes on Europeans who compete in their own fields having to pay for Airbus.
It seems that France has maneuvered Great Britain and Germany into hostages. Both too afraid to pull out and lose jobs. Kind of like investing in a business with the mafia, you find out that the customers are not where the money is going to come from.
She really needs to eat something.
Hello Paleo Conservative,
So is Paris also the lead engineer for the 350XWB?
The British government is expected to be asked to provide some launch aid for the A350... and this is what Boeing has to compete against... eurotrash govt welfare.
Tipping Airbus to France will lead to a new German airplane company and the Germans eventually pulling out of Airbus. Try to work for the French, you'll never like it. That's OK since German aeronautics were always cutting edge.
"A bit more on the woes of Airbus and the "games socialist governments play"! Enjoy"
Enjoy it we should. Anyone who has even heard the name Hayek should be laughing their butts off.
"Paris goes to war..."
I stopped reading there.
Maybe the Euroweenies will wake up and realize that with 10-15% real unemployment and no GDP growth they should reduce their ridiculously high central bank short term rates and try to stimulate their economies with tax cuts ,, you know , like back in the late 50's early 60's when they actually had GROWTH... Their central banks are just trying to push down the dollar right now ,, too bad it makes their exports (A320 anyone) SOOO EXPENSIVE ... the funny thing will be when this ruse crashes and they have to cut twice as deep and for thrice as long as they would now...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.