Airbus Group (stock exchange symbol: AIR) further integrates by merging its Group structure with its largest division Airbus Commercial Aircraft into a new entity.
Last night, the Board of Directors of Airbus Group approved a respective proposal by the company’s Chief Executive Officer (CEO) Tom Enders.
“Already in July, we launched a transformation programme that is heavily focused on digitalisation of the company’s core processes and tools,” Tom Enders said. “It will impact the way the company and its employees will work and the way we organise Airbus in the future. Lean structures and speedy decision-making are prerequisites for the success of digital transformation. The merger of Airbus Group and Airbus paves the way for an overhaul of our corporate set-up, simplifies our company’s governance, eliminates redundancies and supports further efficiencies, while at the same time driving further integration of the entire Group. The other two divisions, Defence and Space led by Dirk Hoke and Helicopters led by Guillaume Faury, remain integral parts of the Group and will derive considerable benefit from the merger through more focused business support and reduced costs.”
The new entity will be led by CEO Tom Enders. Fabrice Brégier will become Chief Operating Officer (COO) and President Airbus Commercial Aircraft.
As COO, Brégier will have group-wide responsibilities, inter alia for reshaping digital operations – the core part of the group’s transformation programme – as well as for global supply chain and quality.
“We are bringing Team Airbus closer together, recognizing that our Commercial Aircraft Division is by far the largest contributor to our company’s revenues and financials. We are committed to delivering the next level of performance by, for example, further streamlining our corporate structures and establishing a simpler and leaner organization overall with less bureaucracy, closer collaboration and faster processes,” explained Tom Enders.
The details of the merger and its resulting impacts are now subject to discussions with the social partners on Group, national and divisional level.
The merger provides the opportunity to introduce a single Airbus brand for the Group and all its entities, effective January 2017.
These latest efforts are the continuation of a number of integration and normalisation steps, which Airbus has taken in recent years: In 2012, the company combined the Human Resources and Finance departments of both Airbus Group (then EADS) and Airbus. The Group also relocated its headquarters to Toulouse. In 2013, the Group fundamentally reshaped its corporate governance and shareholder structure, moving away from a Franco-German joint venture to a fully independent Board of Directors and a free-float of more than 70 percent. Subsequent steps brought the company’s rebranding (EADS became Airbus Group) and the Group-wide integration and streamlining of additional functions.