EADS Sheds Binational Managment Structure

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German Chancellor Angela Merkel shakes hands with French President Nicolas Sarkozy during an informa

German Chancellor Angela Merkel shakes hands with French President Nicolas Sarkozy during an informal summit at Airbus A380 factory in Toulouse, France, to decide who will run the European aerospace group EADS. Patrick Kovarik/AFP/Getty Images hide caption

itoggle caption Patrick Kovarik/AFP/Getty Images

German Chancellor Angela Merkel and French President Nicholas Sarkozy on Monday announced they will abandon the binational management of the European Aeronautic Defence and Space Company, the parent company of troubled Airbus.

Under the new structure, German Thomas Enders will take over as the sole chief executive officer of Airbus, while Frenchman Louis Gallois will become the only CEO of EADS. The two men had shared the CEO duties at EADS, while Gallois also ran Airbus.

Enders' first order of business will be to implement a reorganization plan for Airbus, overseeing a restructuring plan that calls for 10,000 jobs to be cut over four years to offset financial losses.

Airbus has been plagued with problems in the past two years, including delays to the A380 superjumbo jet and a revamp of the A350 coming amid revelations of management errors, technical woes and huge severance payments for departing executives.

The setbacks have cost the company billions in profits and saddled Airbus with its first-ever operating loss last year.

Merkl and Sarkozy announced the change in management style leaders after a meeting at EADS' headquarters in Toulouse, France. The shared French-Germany management of EADS has been blamed for the company's problems.

The two leaders predicted the streamlined structure will be a major development for the company, a rival of U.S. airplane manufacturer Boeing.

From NPR and The Associated Press reports

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