Airbus Group to merge with commercial aircraft unit
30 Sep 2016
European aerospace and defence company Airbus Group SE today said that it would merge with its plane making unit, Airbus Commercial Aircraft, in order to further integration of the entire Group ahead of expected stiff competition.
The Toulouse-based company said that it would further integrate by merging Airbus Group with its largest division Airbus Commercial Aircraft, which would be led by CEO, Tom Enders.
Fabrice Bregier, currently CEO of Airbus unit, will become chief operating officer and president Airbus Commercial Aircraft.
The merged company will be renamed "Airbus" and be known as a single Airbus brand for the Group and all its entities, effective January 2017.
''We are bringing Team Airbus closer together, recognising 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,'' said Enders.
The company noted that the latest efforts are the continuation of its previous integration and normalisation steps. In 2012, the company combined the human resources and finance departments of both Airbus Group, then EADS, and Airbus and relocated its headquarters to Toulouse.
''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 company said in the statement.
The other two divisions, Defence and Space led by Dirk Hoke and Helicopters led by Guillaume Faury, will remain parts of the Group and will derive benefit from the merger through more focused business support and reduced costs.