Spain's Gamesa Aeronautica has presented a cost reduction plan to its unions, as it warns that the company will sink into loss by 2006 unless action is taken. In 2004 it reported a net profit of only €7 million ($9.15 million) - far short of the €27 million initially budgeted, writes Rainer Uphoff.
Under the proposals, Gamesa needs to implement a 30% cut in production, principally because of a reduction in orders for the Embraer ERJ-145 family, for which it produces the wings as a risk-sharing partner. The company does not expect that additional orders for Airbus A380 and Sikorsky S-92 components will be enough to compensate in the short-term.
Source: Flight International
