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May 30th, 2005, 05:33 PM
WSJ: Airbus Set To Get First Non-French CEO - Source
29 May 2005
Dow Jones International News
By Dan Michaels
Of THE WALL STREET JOURNAL
PARIS (Dow Jones)--Airbus is set to get its first non-French chief executive in the European plane maker's 35-year history, resolving a long dispute over who will take the helm of the company, The Wall Street Journal has learned.
Gustav Humbert, the company's German chief operating officer and head of programs, has been approved to succeed Noel Forgeard as Airbus chief executive officer, according to a person close to the decision. The move has been expected for several weeks. The person said the management change has been approved by European Aeronautic Defence & Space Co. (5730.FR), which owns 80% of Airbus and runs it as a division, and by co-owner Britain's BAE Systems PLC (BA.LN).
(This story and related background will be available on The Journal's Web site, WSJ.com)
The selection appears to resolve the last major issue in a months-long and very public dispute over the senior management of EADS.
The decision comes as Airbus is grappling with delays and possible budget overruns on its giant A380 jetliner and scrambling to win orders for a new mid-sized plane, the A350. The proposed two-aisle A350 jet is meant to compete with the 787, now being built by rival Boeing Co. (BA). Boeing has recently energized its competitive drive against Airbus and won several big orders for the 787 over the A350. The two companies also appear headed for what could be the biggest trade case ever brought to the World Trade Organization, over government subsidies to the two plane makers.
An official announcement of the Airbus succession could come as soon as Wednesday, according to the person familiar with the decision. Forgeard is leaving Airbus to become co-CEO of EADS, alongside Thomas Enders, the German head of EADS's defense division. Enders is poised to be replaced in that post by his current No. 2, Stefan Zoller. EADS's helicopter division, Eurocopter, will also be elevated to a division of the aerospace conglomerate, and its CEO, Fabrice Bregier, will have management status similar to the other division chiefs.
Airbus was created from aviation companies in France, Germany, Britain and Spain and is based in Toulouse, France, and its top manager has always been French. The board of EADS had informally selected Humbert for the job several weeks ago, but delayed the official decision and any announcement until after the French referendum on the European Union constitution Sunday. In France, Airbus is widely seen as a French company and a symbol of French prestige. According to people close to the decision, French officials wanted news of a non-French boss at Airbus to be delayed so that it would not play into the hands of opponents of the constitution.
Humber, who is 55, has managed Airbus operations since 1990, first in Germany and since 2000 in Toulouse. He is a member of the executive committee of Airbus, alongside Forgeard and other top managers.
The pending appointment comes just days before aerospace companies from around the world gather for the Paris Air Show on June 13. EADS had hoped to name Forgeard's successor after its annual general meeting on May 11, but internal disputes delayed that and the company said its new management would be announced after June 1.
EADS has faced management turmoil since last fall, when Forgeard began a successful and public push to have himself named to replace Philippe Camus as co-CEO of EADS. Forgeard was selected over Camus early this year by the two large French shareholders of EADS - the French state and media group Lagardere SCA (13021.FR), which each hold 15% of EADS. The board of EADS hoped the hand-off would take place May 11.
But the French succession fight quickly evolved into a Franco-German dispute as well, after the French shareholders failed to agree with DaimlerChrysler (DCX), which also owns 30% of EADS, on who would fill the positions under the co-CEOs and what responsibilities those managers would hold. The board of EADS as a result issued a statement May 11 saying Forgeard and Enders would take over as co-CEOs only on June 1. Until then, co-chairman Manfred Bischoff and Arnaud Lagardere are serving as interim CEOs.
29 May 2005
Dow Jones International News
By Dan Michaels
Of THE WALL STREET JOURNAL
PARIS (Dow Jones)--Airbus is set to get its first non-French chief executive in the European plane maker's 35-year history, resolving a long dispute over who will take the helm of the company, The Wall Street Journal has learned.
Gustav Humbert, the company's German chief operating officer and head of programs, has been approved to succeed Noel Forgeard as Airbus chief executive officer, according to a person close to the decision. The move has been expected for several weeks. The person said the management change has been approved by European Aeronautic Defence & Space Co. (5730.FR), which owns 80% of Airbus and runs it as a division, and by co-owner Britain's BAE Systems PLC (BA.LN).
(This story and related background will be available on The Journal's Web site, WSJ.com)
The selection appears to resolve the last major issue in a months-long and very public dispute over the senior management of EADS.
The decision comes as Airbus is grappling with delays and possible budget overruns on its giant A380 jetliner and scrambling to win orders for a new mid-sized plane, the A350. The proposed two-aisle A350 jet is meant to compete with the 787, now being built by rival Boeing Co. (BA). Boeing has recently energized its competitive drive against Airbus and won several big orders for the 787 over the A350. The two companies also appear headed for what could be the biggest trade case ever brought to the World Trade Organization, over government subsidies to the two plane makers.
An official announcement of the Airbus succession could come as soon as Wednesday, according to the person familiar with the decision. Forgeard is leaving Airbus to become co-CEO of EADS, alongside Thomas Enders, the German head of EADS's defense division. Enders is poised to be replaced in that post by his current No. 2, Stefan Zoller. EADS's helicopter division, Eurocopter, will also be elevated to a division of the aerospace conglomerate, and its CEO, Fabrice Bregier, will have management status similar to the other division chiefs.
Airbus was created from aviation companies in France, Germany, Britain and Spain and is based in Toulouse, France, and its top manager has always been French. The board of EADS had informally selected Humbert for the job several weeks ago, but delayed the official decision and any announcement until after the French referendum on the European Union constitution Sunday. In France, Airbus is widely seen as a French company and a symbol of French prestige. According to people close to the decision, French officials wanted news of a non-French boss at Airbus to be delayed so that it would not play into the hands of opponents of the constitution.
Humber, who is 55, has managed Airbus operations since 1990, first in Germany and since 2000 in Toulouse. He is a member of the executive committee of Airbus, alongside Forgeard and other top managers.
The pending appointment comes just days before aerospace companies from around the world gather for the Paris Air Show on June 13. EADS had hoped to name Forgeard's successor after its annual general meeting on May 11, but internal disputes delayed that and the company said its new management would be announced after June 1.
EADS has faced management turmoil since last fall, when Forgeard began a successful and public push to have himself named to replace Philippe Camus as co-CEO of EADS. Forgeard was selected over Camus early this year by the two large French shareholders of EADS - the French state and media group Lagardere SCA (13021.FR), which each hold 15% of EADS. The board of EADS hoped the hand-off would take place May 11.
But the French succession fight quickly evolved into a Franco-German dispute as well, after the French shareholders failed to agree with DaimlerChrysler (DCX), which also owns 30% of EADS, on who would fill the positions under the co-CEOs and what responsibilities those managers would hold. The board of EADS as a result issued a statement May 11 saying Forgeard and Enders would take over as co-CEOs only on June 1. Until then, co-chairman Manfred Bischoff and Arnaud Lagardere are serving as interim CEOs.