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Airbus announces Power8+ plan |
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Sunday, 14 September 2008 |
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In its on-gong attempt to reduce expenses, Airbus has announced Power8+, a continuation of the original cost-cutting scheme introduced last year.
Airbus has presented its European Work Council with the Power8+ programme, a continuation to the cost-cutting plans that the company unveiled last year.
Under the new programme, the airline manufacturer hopes to save 650 million euros (£520 million) in 012, adding to the original Power8 target of 2.1 billion euros (£1.7 billion) worth of cost reductions in 2010.
This will be done partly by extending the Power8 initiatives up to 2012, and also by further internationalising its engineering and manufacturing operations.
"Power8 is the centre-piece in Airbus' restructuring and integration efforts and we have been very successful in achieving our targets so far," said Tom Enders, president of Airbus.
"However, markets and competition remain challenging. Further measures to improve our cost base and overall efficiency are necessary to secure the long-term competitiveness of our company.
The Financial Times reports that the second part of its efficiency drive will see Airbus turn to plants in Tunisia and Mexico. The Power8+ initiative accounts for two thirds of the one billion euro (£802 million) cuts that were targeted by Airbus' parent company EADS in July.
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