The parent company of Airbus, EADS, has finally approved an extensive cost-cutting package for the aviation giant. The plan, known as “Power 8”, will be outlined to the management and workers’ unions tomorrow. It has been the subject of intense wrangling, right up to the highest level, with Jacques Chirac and Angela Merkel even discussing it last week.
Previous drafts threatened 10,000 job losses, which is about a fifth of the total workforce, primarily in Germany and France. The company has to save five billion euros between now and 2010.
It is not known exactly what the approved plan contains but the French and German governments had called for a fair spread of job losses and compensation plans for staff and sub contractors. The crisis at Airbus was sparked by delays of its A380 aircraft and a weakening dollar affecting competitiveness.