In light of the recent international trade negotiation of France and Germany with Airbus, an auxiliary Franco-German EADS firm, French President Jacques Chirac met with German Chancellor Angela Merkel. During their meeting last Thursday, the French leader declared that he intends to have an equal share of job cuts at Airbus with Germany. Recently, Airbus's new president Louis Gallois announced the company's plans of major cost cutting measures because of the delays in its A380 superjumbo project. Airbus's plans include the eliminations of posts as part of its detailed proposal to cut $2 billion from its cost starting 2010. Since the two major plants of Airbus are located in France and Germany, President Chirac sees the job cut shares as a fair move in accordance with France's international trade deal with Germany.



It can be recalled that Airbus's A380 project was established to provide a new genre of air profitability and travel. It was meant to establish Airbus as one of the world's leading producers of commercial planes and jets that will aid its affiliate countries' by supporting international trade activities on travel and airline industry. But due to the project's reported delays, the production of A380 will be late for two years. The delays on Airbus's plans will cost $6.1 billion production lose for the next three or four years. Also, today's leading airlines that are due to buy the superjumbo have expressed dismay at Airbus's present situation, thus resulting to some bail out of orders of the A380 airliners. The problems faced by Airbus on its superjumbo project greatly affected trade conditions Germany, UK, and France, wherein a huge part of the company's main operations are stationed.

During the said meeting, Chirac also declared his full support for the reconstruction plans of Airbus. He said that a harmonious sharing of job cuts between the two major sites in Toulouse and Hamburg is the key to the success of Gallois' plans. He added that any form of cost cutting measure had to cover the interest of subcontractors assigned in France and Germany who are all working on new Airbus projects. Such comments from the French government on the major deals of Airbus are viewed as important by the aircraft manufacturer as France owns 15 percent of EADS. Aside from that, the French government's international trade support on the airline and travel industry could be at stake.

Meanwhile, German Chancellor Merkel said that Germany may consider buying EADS share holdings if giant car manufacturer DaimlerChrysler will sell a part of its shareholdings which amounts to 22.5 percent. Merkel made this statement right after her meeting with Chirac, as she pointed out that DaimlerChysler, which is the major German shareholder at EADS, will only sell its share if the move will be supported by Berlin. As of now, the German government has yet to come up with a decision and plans on safeguarding Airbus factory sites in its territories. Merkel, however, said that Germany will focus on finding dependable international trade investors who will offer long term support on Airbus's project. As such, the country will not only strengthen its international trade relation with Airbus, but it will also help safeguard its holdings with the company.