Airbus to become a company in February

Plane maker Airbus Industrie is to transform itself from consortium to company by the end of February, generating synergies of…

Plane maker Airbus Industrie is to transform itself from consortium to company by the end of February, generating synergies of at least euro 350 million ($333.6 million) per year from 2004, the shareholders said today.

Airbus is hoping these efficiency gains will make it more competitive against arch-rival Boeing, which itself has been critical of the lack of transparency associated with the Airbus consortium structure.

The two shareholders, European Aeronautics and Space (EADS)and British Aerosapce Systems (BAE), said Airbus Industrie's restructuring would be complete at the end of next month.

"The restructuring of Airbus activities will allow the group to deliver to its clients and shareholders even higher levels of performance," said Mr John Weston, chief executive of BAE.

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EADS, which owns 80 per cent of Airbus, and BAE Systems, which holds the remaining 20 per cent, announced a deal last June to transform the group by the start of 2001.

The change comes at a crucial point in the heated rivalry between Airbus and Boeing. Just last month, Airbus launched its 555-seat superjumbo A380 aircraft, a plane it hopes will end Boeing's monopoly of the large aircraft market.

Reuters