A row between the French and German arms of EADS over who succeeds co-chief executives Philippe Camus and Rainer Hertrich shows every sign of deepening.
The spat throws doubt on claims that, since its formation four and a half years ago, Europe's biggest aerospace company has buried its national divisions and become a unified global business. It could also threaten EADS's hopes of breaking into the US defence market.
The rift erupted last week when Hertrich confirmed that he plans to stand down when his contract expires in July. It followed his comments in a German newspaper that French moves to install Airbus chief executive Noel Forgeard as joint or single head of EADS were driven by "personal ambition". President Jacques Chirac is reported to want a single French chief executive.
EADS's 30% German shareholder DaimlerChrysler is understood to be insisting on retaining two chief executives and will replace Hertrich with Thomas Enders, head of EADS defence and security systems division. Camus has not revealed his intentions, but it is thought he also will not seek to renew his contract.
By convention, French heads of EADS divisions such as Forgeard and Eurocopter chief executive Fabrice Bregier report to Hertrich, while Germans such as Enders and chief finance officer Hans Peter Ring have Camus as their boss.
Last week, French finance minister Herve Gaymard conceded there was a "management problem involving people" at EADS and added: "It is not good for the company".
A German source within EADS says this is the first time tensions between France and Germany have emerged. "For five years, we have had no problem. Now it is coming from their side," the source says.
MURDO MORRISON / LONDON
Source: Flight International
