Australian News

Australian news and media publication

the european giant Airbus works hand in hand with AT Kearny in the development of a powerful cost reduction plan to speed up the recovery of the group after the pandemic. the company he runs Guillaume Faury has entrusted the US consulting firm with the review of its operating structure, as sources familiar with La Información have confirmed, in order to significantly cut the company’s costs.

AT Kearney’s commission seeks to eliminate the operational inefficiencies that the consulting firm eventually detects. The group plans to focus cost containment on certain budget items such as wages or investment in R+D+i, whose eventual cut could be balanced thanks to the entry of European funds. Airbus sources have refused to comment on the matter. The consultancy is developing these services in parallel to the launch of the aid fund for the aeronautical industry known as Ace Aerofondo.

The aforementioned project is based on the alliance that the Government, through Sepi Desarrollo Empresarial (Sepides), and Airbus sealed in January last year to rescue SMEs in the sector in trouble after the coronavirus hit. The initiative also has Indra Y Tikehau Capital, the private equity who has assumed the management of the fund. This investment arm is endowed with 100 million euros, the public holding company and the venture capital firm injected 33 million each, Airbus contributed 28.3 million, while Indra contributed 5 million.

From left to right: Cristina Ruiz, CEO of Minsait, Mar Murtra, non-executive chairman of the group, and Ignacio Mataix, CEO of the Transport and Defense branch at the group's shareholders' meeting, held this Wednesday.  INDRA 6/30/2021

The fund was born as a revulsive for the different links in the supply chain of the national aeronautical industry, highly resentful of the paralysis of air traffic due to the coronavirus. A year after signing the alliance, the Aerofund has not yet undertaken any investment, which has led companies likely to take advantage of this oxygen ball -Grupo Masa or Egile- to resort to other financial aid mechanisms such as the Cofides rescue fund.

The Aerofund agreement served to harden positions between Airbus and the Government to the point that the company, which had already embarked on a cost containment process, undertook to reduce the impact on our country of your plan to cut staff globally, which was initially going to affect 15,000 workers worldwide, 1,600 of them in Spain.

Cutting costs is a top priority for Airbus, which has failed to recover pre-pandemic sales levels

AT Kearney is one of the most active professional services firms in the field of renewal processes and adjustment of production structures within the national corporate market. The consultancy has carried out similar work for Ibex 35 listed companies such as Indra, as well as for other giants of the Spanish business fabric such as El Corte Inglés.

In the case of Airbus, cost reduction continues to be a top priority, given a recovery that is expected to be slower than expected. The group got a result of 2,635 million between January and September 2021, exceeding the red numbers of 2,686 million of 2020 and even the benefit of 2,186 million of the same period of 2019. However, the group’s billing still suffers to the blow of the pandemic, standing at 35,155 million in September, compared to sales of 46,168 million of the first nine months of 2019.

Leave a Reply

Your email address will not be published.