A European defence giant heals wounds and looks ahead
LOUIS GALLOIS, the chief executive of EADS, seems to have been doing his best to make the company boring. In many respects he has succeeded, presiding over a period of uncustomary managerial calm at the European aerospace and defence firm. This is some feat: until recently EADS seemed perpetually at risk of being torn apart by the Franco-German rivalries that had persisted from its creation, in a pan-European merger, in 2000.
Although Mr Gallois has brought calm to the management suite, the firm had a lively end to 2010. Airbus, EADS’s civil-aviation arm, hit the news in November after a Rolls-Royce engine on a Qantas A380 superjumbo exploded in mid-flight. Rolls-Royce’s modifications of similar engines will continue to affect Airbus’s deliveries of A380s in 2011. In the same month an extraordinary error by the Pentagon saw EADS and Boeing, rivals for a $35 billion tanker contract from the United States Air Force, being sent confidential details of each other’s bids. In December two Airbus executives were charged in connection with a long-running insider-dealing investigation by French authorities. …