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Airbus cost savings include far fewer contractors

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Airbus cost savings include far fewer contractors

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The troubled plane maker Airbus has confirmed it is to cut the number of sub contractors it uses by 80%. The current 3,000 firms that supply it will be reduced to around 500. It all part of a restructuring plan designed to address the billions of euros of losses from production problems leading to delays of Airbus’ A380 superjumbo.

A spokesman for the plane maker could not say which companies would be affected or where. Airbus’ parent company, the European aerospace group EADS, said it plans to cut its costs by 1.25 billion euros between now and 2010, including reducing administrative costs by 900 million euros.