EADS is to shut the main Merignac facility of its French maintenance, cabin completions and support business Sogerma Services as part of a restructuring that it blames on increased airline outsourcing to low-cost economies, the failure of various attempts to diversify and “the loss of French military maintenance markets”. EADS, which says Sogerma is in “very serious crisis”, wants to reverse losses of €237 million ($306 million) and debts of €339 million in 2005 by ending “activities without prospects for profitability”. EADS has asked the Sogerma board to come up with a plan to ensure the company’s “recovery and durability”.
Source: Flight International
