Don't miss

Replay


LATEST SHOWS

FASHION

Paris Men's Fall/Winter 2015, freedom of speech triumphs

Read more

BUSINESS DAILY

Davos 2015: Businesses 'cautiously optimistic' in Japan

Read more

MEDIAWATCH

Twitter storm as IMF boss Christine Lagarde hails Saudi King Abdullah as 'strong advocate of women'

Read more

EYE ON AFRICA

DR CONGO: Senate amends controversial constitutional law

Read more

THE WORLD THIS WEEK

Pope Family Planning: Heated Debate over Pontiff's 'Rabbit' Comments (part 2)

Read more

THE WORLD THIS WEEK

Saudi King Abdullah Dies: Succession, Stability and Youth in Question (part 1)

Read more

FRANCE IN FOCUS

France tackles terror

Read more

THE BUSINESS INTERVIEW

Jean-Pascal Tricoire, CEO of Schneider Electric: 'France is on a better track'

Read more

DEBATE

Davos debate: Can big business agree on climate deal? (part 2)

Read more

Business

EADS may inject funds to prop up Airbus

Latest update : 2008-12-06

The European aerospace group EADS may have to recapitalise its cash-strapped aircraft manufacturing unit, Airbus, by injecting more than two billion euros, according to French business daily Les Echos.

AFP - European aerospace group EADS might have to recapitalise its main arm, the Airbus aircraft maker, with more than 2.0 billion euros, possibly also simplifying the business, a newspaper reported on Friday.

The European Aeronautic Defence and Space Company (EADS) might have to "recapitalise from next year to the extent of 2.0 billion euros (2.55 billion dollars)" because shareholder funds are inadequate, a report in the economic newspaper Les Echos said, quoting unidentified sources within the group.

The parent group would have to boost capital in the four national entities that form the Airbus operation: Airbus France, Airbus Deutschland, Airbus UK and Airbus Espana.

For Airbus France alone, the balance sheet would show a need for new capital of 1.2 billion euros, the report said.

The whole group would use the opportunity of recapitalisation to simplify its structure "notably by absorbing Airbus France into the parent company Airbus SAS," which was expected to continue showing a situation of positive shareholders' funds.

Such changes would not affect employees in French factories the report said.

EADS and Airbus are still overcoming a crisis sparked by delays to deliveries of their flagship aircraft, the A380 superjumbo jet airliner.

That crisis revealed deep problems in both production and management procedures.

The complexities, and attendant rivalries, of the trans-European nature of Airbus have long been a source of recurrent strains, mainly over the interests of Germany and France.
 

Date created : 2008-12-05

COMMENT(S)