Faury takes over as CEO of Airbus
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Frenchman Guillaume Faury took over as CEO of European aerospace giant Airbus yesterday, looking to benefit from the current troubles of rival Boeing and limit potential disruption from Brexit and US President Donald Trump’s trade threats.
The 51-year-old replaced Tom Enders, who is stepping down after five years leading the France-based group whose 129,000 employees manufacture airliners, helicopters and satellites.
Enders oversaw further expansion of the group, but his rein was clouded by a recent decision to scrap the loss-making A380 super-jumbo range of planes as well as multiple probes into suspect payments.
The German’s retirement package — worth 37 million euros (US$41 million) including pension and stocks — has sparked controversy in France and a pledge from the government that it will legislate to limit huge corporate payoffs.
Faury will inherit a financially sound, highly profitable business with an order book of 7,350 passenger planes, which would be enough to keep factories running for a decade at current production rates.
Analysts see Airbus as having an opportunity to profit from the booming airline market, particularly in Asia, and from the global grounding of Boeing’s 737 MAX plane after two recent deadly crashes involving the popular new airliner.
“They simply need to use this window of Boeing weakness to hoover up orders in Asia, if they can,” said aerospace analyst Neil Wilson at Markets.com, an online financial trading platform.
According to industry body IATA, Asia will account for most of growth in the industry over the next 20 years, with more than half of the new passenger traffic coming from the region.
But Faury will also have several tricky issues in his inbox, including handling the fall-out from Britain’s decision to leave the European Union, which threatens to disrupt the company’s long and complicated supply chains.
“Brexit could well mean a complete rethink of long-term manufacturing strategy for Airbus and brave decisions may need to be made unless a satisfactory outcome can be agreed by UK and Brussels,” said independent aviation analyst Howard Wheeldon.
The US is another source of worry after Trump lashed out again at the EU this week, vowing to impose fresh tariffs over Airbus subsidies.
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