Airbus May Discuss New Restructuring Plans - Source

September 9, 2008

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European planemaker Airbus plans to hold a key meeting with European unions on Tuesday and further restructuring measures could be on the agenda, a source familiar with the matter said on Tuesday.

French newspaper Les Echos reported that Airbus would outline EUR1 billion euros (USD$1.41 billion) of extra cost cuts under its Power 8 Plus plan on top of its USD2.1 billion original Power 8 restructuring plan which runs from 2007 to 2010.

Company officials have said they will be looking for around EUR1 billion of extra savings between 2010 and 2012 but that the easiest savings have already been achieved.

The plane maker has been forced to revive its restructuring plans after the dollar fell below USD$1.35 to the euro targeted in the original Power 8 plan. Airbus said earlier this year it now assumed a euro worth USD$1.45 at the end of the program.

The euro is currently worth USD$1.41.

Airbus parent EADS said every 1 cent movement in the currency rate represents a difference of USD100 million at the operating income level.