At long last, moves are afoot to convert Airbus from an anachronistic partnership into a proper limited company. The structure under which Airbus has operated for 27 years is inappropriate for an enterprise which turns over $10 billion a year and plans a massive investment in a new aircraft.
Airbus may have sold over 2,000 jet airliners, but the current cumbersome structure, under which the partners are both shareholders and subcontractors, places it at a disadvantage to its principal competitor, Boeing.
Boeing executives make their own strategic decisions, know their cost structure, have wide financing options, and buy goods and services on the open market at the cheapest possible price. They have the benefits of a single corporate culture and no political interference. Boeing uses its management freedom to cut production costs and cycle times, while Airbus cannot launch a new aircraft unless it transforms its own organisation.
It is vital for airlines to have healthy competition among planemakers, and to have a manufacturing sector which can invest in risky new products. Turning Airbus into a corporate organisation can only be good for its customers.
Source: Airline Business
