Germany, France consider golden share to protect Airbus interests

Sep 18, 2007, 14:41 GMT

Berlin - German and French political leaders are to meet later this year regarding the future of Airbus to secure their 'strategic and security interests,' a German government official said Tuesday following a meeting called by Chancellor Angela Merkel.

Peter Hintze, aerospace coordinator for the federal government, said one of the points to be discussed was the possible introduction of a 'golden share' to secure the strategic interests of the two countries.

Merkel called a meeting of Airbus investors primarily to discuss the future of German plants earmarked for sale.

'Germany and France will meet later this year for talks on ensuring their strategic and security interests, independently of share ownership,' Hintze said.

He said that the planned sale of plants at Varel and Nordenham, both in the northern state of Lower Saxony, and of Augsburg in Bavaria would take months.

This resulted from the time needed to take decisions on fuselage construction. The sale of the Laupheim plant in the south-western state of Baden-Wuerttemberg could proceed more quickly.

At the end of April, Airbus announced plans under its 'Power8' restructuring scheme to lay off some 10,000 workers at plants in France, Germany, Britain and Spain, and to sell off certain sites. The number of job cuts was later reduced to 8,000.

The company, a subsidiary of the European Aeronautic Defence and Space Company (EADS), ran into financial difficulties as a result of delays to its A380 superjumbo.

The first commercial A380 flight is to take place in October, some two years late.

EADS subsequently underwent managerial restructuring, its cumbersome joint chief executive structure being replaced. Frenchman Louis Gallois now heads the company, while German Thomas Enders is sole boss at Airbus.

The main shareholders of EADS are DaimlerChrysler, the French state and French company Lagardere. The Spanish state also owns a stake.