Airbus Industrie and its four owners are preparing for long and complex negotiations about restructuring the partnership. In a report due in July, the four-man committee headed by former Daimler Benz chairman Edzard Reuter will discuss the options, now that the French, German, UK and Spanish governments have agreed in principle.
The most contentious issues will be ownership and the valuation of manufacturing assets. Currently, Aérospatiale and Daimler Benz each own 37.9 per cent, British Aerospace 20 per cent and Casa 4.2 per cent. BAe will demand a larger share of the new company, arguing that it contributes most to overall profitability. All partners will insist that their investments are not diluted.
Turning Airbus into a plc is a prerequisite for launching the 550-seat A3XX. Benefits would include limiting the partners' liability, a major issue given the $8 billion development cost of the A3XX and the inherent risks; broadening the options for raising finance; competitive tendering; joint purchasing; cost transparency; and efficiency gains.
The A3XX is likely to be developed by a daughter company, of which Airbus would own around 60 per cent. External partners, including Italy's Alenia and US and Asian firms, would be invited to take up the rest.
Meanwhile, chief operating officer Volker von Tein says that if Airbus launches a stretched, re-engined A340, the A3XX could be delayed indefinitely. 'We will not develop them in parallel,' he says. The A340-600 would partially satisfy Airbus' large-aircraft ambitions at the relatively modest airframe development cost of $1 billion, and could be in service by 2001.
Richard Whitaker
Source: Airline Business
