EADS Co-CEO Enders Breaks Silence
Reuters | Jun. 19, 2006
EADS Co-Chief Executive Thomas Enders broke his silence on the crisis surrounding Europe's largest aerospace group on Sunday, saying it is a matter for the whole group, not just for Airbus.
News of fresh delays in the delivery of A380 superjumbo aircraft stripped a quarter of the value from EADS shares last week and airlines are calling for compensation.
Enders, one half of EADS' French and German management team, said that any consequences should not be restricted only to Airbus.
"The crisis at Airbus is also a crisis for EADS. But every crisis brings opportunities with it," he said. "Because of this we should not act too hastily and only consider personal consequences and changes in procedure at Airbus."
French and German authorities have launched probes into EADS stock trading and EADS is investigating the delays, which followed assurances in May that the EUR12 billion (USD$15.2 billion) project to build the world's largest airliner was on track.
EADS French co-chief executive Noel Forgeard is resisting calls to resign and said he had no advance knowledge of the delays when he sold EADS stock in March for a EUR2.5 million (USD$3.2 million) profit.
Enders told news agency Dow Jones he had chosen not to exercise any of his share options in March, although the high share price would have made it a lucrative decision.
"I did not consider it opportune (to sell) at that point in time," he was quoted as saying.
The six-month delays, due to a repeat of wiring problems experienced last year, are expected to cost EADS EUR2 billion (USD$2.5 billion) from 2007-2010. EADS owns 80 percent of Airbus and was preparing to buy out minority shareholder BAE System.
Sixteen airlines had ordered 159 A380s, which list for USD$300 million, but Airbus said on Tuesday it would only be able to deliver nine planes next year, from an expected 20 to 25.