EADS may inject funds to prop up Airbus
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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.