Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Weak Dollar a 'Life Threat' to Airbus

Airplane giant urges European governments to slow surging euro

By Jim O'Neill,  Newser User

Posted Nov 23, 2007 6:49 AM CST
Email

(Newser) – The weakening dollar has European aerospace giant Airbus in a tailspin that could be “life-threatening,” CEO Tom Enders said yesterday, the Financial Times reports, adding that the exchange rate has “gone beyond the pain barrier.” Airbus said every 10-cent decline in the dollar cost the company €1 billion. The dollar reached a low of $1.4873 against the euro this week.

Airbus, already shedding 10,000 employees and selling plants as part of a restructuring, also said it would drop a planned 25% increase in R&D. The company and unions are hoping European governments will act to slow the strengthening euro, which is giving rival Boeing an advantage over the embattled company. French President Nicolas Sarkozy is calling for a “fairer exchange rate.”

EADS co-CEO Tom Enders gestures outside Airbus headquarters, in Toulouse, southwestern France, Monday, July 16, 2007.
EADS co-CEO Tom Enders gestures outside Airbus headquarters, in Toulouse, southwestern France, Monday, July 16, 2007.   (Associated Press)
France's President Nicolas Sarkozy wants a fairer exchange rate for the dollar.
France's President Nicolas Sarkozy wants a "fairer exchange rate" for the dollar.   (Associated Press)
Airbus CEO Tom Enders.
Airbus CEO Tom Enders.   (Getty Images (by Event))
An Air Canada Jazz Dash 8 rolls (rear) by an Airbus A380, the world's largest passenger plane, parked at Pierre Trudeau Airport in Montreal Monday, Nov. 12, 2007.
An Air Canada Jazz Dash 8 rolls (rear) by an Airbus A380, the world's largest passenger plane, parked at Pierre Trudeau Airport in Montreal Monday, Nov. 12, 2007.   (Associated Press)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

Airbus staff says dollar not an issue
BBC

Boeing landing record sales
Seattle Post-Intelligencer

World • Money

 
Boeing • world economy • Airbus • US dollar

More Newser Stories

Weaker Dollar Revamps World Economy

Airbus' Star Jet Grounded After Air Show Flub

US Illegally Subsidized Boeing, WTO Rules

1600 Cockpit Doors May Be Defective

Boeing's Dreamliner Takes Off Next Week
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne