Taking a page from Boeing, Airbus now is planning to outsource up to 60 percent of its parts production, in particular sending work to India and China in hopes of landing more orders from those two key aviation markets.
In Wales, The Daily Post reports http://icnorthwales.icnetwork.co.uk/business/businessnews/tm_objectid=16262593&method=full&siteid=50142&headline=airbus-parts-plan-won-t-affect-jobs-name_page.html that Airbus executives are trying to reassure workers that the outsourcing won’t cost any local jobs.
Key Quote: “Spokesman David Velupillai, speaking from Airbus’ headquarters at Toulouse, France, told the Daily Post last night: ‘We may be looking to outsource 60 percent of our production but we will keep the core competencies to ourselves.’”
Humbert also said he’s more interested in improving profitability than gaining market share, Reuters reported. http://news.airwise.com/story/view/1129556496.html
Key Quote: “As long as the firm’s share hovers between 45 and 55 percent of the new aircraft market, Humbert said he would rather improve profitability by 1 percentage point than market share by the same amount.”
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