Germany sees quick EADS decision, French wary

23 Jun, 2005

A long-awaited decision on management changes at top European aerospace firm EADS is imminent, a senior German official said on Wednesday, though French sources cautioned the talks had not been completed yet. "The point in time is now favourable to expect a decision," German Deputy Economy Minister Bernd Pfaffenbach said in Berlin.
"The individuals are known: Noel Forgeard and Thomas Enders will play on one team, (Gustav) Humbert on the other."
He expected that Germany would be allocated positions in the company in a way that reflected the country's weight, in the same way as France.
Frenchman and current Airbus chief Forgeard and German Enders are due to head EADS, while Forgeard number two Humbert is set to become the first German head of the traditionally French-run Airbus aircraft manufacturing division.
French sources said the shared power structure at EADS with its principle of cross-reporting - which calls for French managers to report to German bosses and vice-versa - had been agreed, but insisted some key points were unresolved.
"It's not in the bag yet," a French source close to the talks said. "There won't be a deal as long as they (the Germans) don't accept that there should be a full balance."
EADS's French and German shareholders have been unable to agree on the future structure of the management and the division of responsibilities, delaying the official appointment of Forgeard and Enders in their co-CEO roles.
The delay was also partly due to the political situation in France, according to Germany's Pfaffenbach.
"It had something to do with the referendum on the European constitution," he said. "Now it's about the company and making personnel matters clear for the public."
French shareholders have accepted Humbert as head of Airbus but also want Forgeard to be named chairman of a supervisory board overseeing EADS's 80 percent stake in Airbus and BAE Systems' 20 percent, the French source said. "It could be finalised quickly or last quite a while longer, it's 50-50".

Read Comments