PARIS (AFX) - Louis Gallois, co-chief executive of EADS, said the company will decide by the end of this month whether to build a revamped version of the Airbus A350 plane, destined to compete in the mid-size plane market with Boeing's 787 Dreamliner.
Speaking with Airbus subcontractors and suppliers at a meeting in Toulouse, France, Gallois said the A350 project launch will depend on the success of the Power8 restructuring plan for Airbus.
'We cannot launch a programme if we are not certain of being competitive,' Gallois said.
The Power8 plan calls for reduced operating costs, including an increase in outsourcing and job cuts. It was announced after Airbus was forced to delay deliveries of the A380 superjumbo plane for the third time, pushing the programme two years behind schedule.
The A350 is being redesigned after complaints from prospective clients, and could now cost up to 10 bln eur to build.
According to a report in the Financial Times today, Airbus could outsource up to 50 pct of the A350 construction work. firstname.lastname@example.org afp/js/joy COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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