Summary
- Airbus is considering hiring a separate executive to lead its aircraft manufacturing division, similar to Boeing's corporate structure.
- The move would allow CEO Guillaume Faury to focus on strategic priorities beyond plane-making.
- The decision to restructure management follows supply chain disruptions and a history of internal disputes that reportedly strained industrial relations between France, Germany, and Spain.
A shake-up of management at European plane-making giant Airbus is reportedly being considered. The company is contemplating hiring a separate executive to lead its aircraft manufacturing division.
The move would closely echo US-based planemaker Boeing’s corporate structure in which each company division has a designated leader. Airbus, however, reportedly said the news is speculation.
Plenty of responsibilities
According to an exclusive report from Reuters, Airbus is considering recruiting a separate boss to head its business in charge of developing aircraft to alleviate some of the duties of the company’s CEO, Guillaume Faury. Sources familiar with the development reportedly said the shift would allow Faury to focus on strategic priorities encompassing more than just its plane-making division.
Becoming CEO a year before the global COVID-19 pandemic, Faury has held plenty of responsibility, guiding Airbus through pandemic-related setbacks in the industry and leading Airbus’ defense and space and helicopter division, according to Reuters. Last year, Faury was re-appointed as CEO.
Shifting the focus
A series of disruptions, including supply chain issues, prompted the company to reassess its original succession plans and shift focus into possibly restructuring the line-up of its corporate leaders to regain industrial control and free up Faury’s time to devote to other priorities, such as defense, according to Reuters.
Details about the timing of when Airbus might announce a new executive or the duties of the role are unknown. They would also depend on approval from the board, which is reportedly not guaranteed. In a statement to Reuters, an Airbus spokesperson said the company would not comment on “rumors or speculation.”
"We don't comment on rumours or speculation regarding organisational or personnel changes."
Simple Flying also contacted the aircraft manufacturer, and a representative could not be immediately reached.
Read the latest Airbus news here.
Internal disputes
Discussions regarding the structure of Airbus’ management are reportedly full of sensitivities due to the company’s history regarding internal disputes. According to Reuters, some altercations have strained the industrial relations between France, Germany, and Spain, which are countries that still have stakes in the company.
Although Airbus was reportedly politically driven around 10 years ago, the company said it is no longer after an agreement limited the interference governments can pose. Should the company move forward with naming a new executive, the structure of its corporate leaders would be comparable to the years leading up to 2018, when Fabrice Bregier was the CEO. Bregier left the company five years ago after tensions following the succession of Tom Enders, who served as CEO until 2019.
A designated leader for the aircraft manufacturing division aligns Airbus with the corporate leader structure of rival Boeing. Some insiders claimed that it was logical for Airbus to combine leadership when Faury became CEO in 2019, but the adverse effects from the pandemic paired with the ongoing war in Ukraine have changed the landscape, according to Reuters.
Internal disagreements have not reportedly occurred as of late, but a number of senior leaders close to Faury have departed the company in recent years.
Following a slow start to the year, Airbus increased its aircraft deliveries in May and last month. According to Reuters, the company remains focused on its output targets and is set to report its half-yearly earnings on Wednesday.
Source: Reuters