By Robert Wall
PARIS-- Airbus Group NV replaced on Thursday the head of its
military plane operations and said it would face financial
penalties due to problems with the A400M military airlifter.
Domingo Ureña-Raso, who previously ran the A400M program,
offered to resign and will be replaced by Fernando Alonso
Fernández, the head of flight testing, the world's second-largest
plane maker said in a statement.
Airbus Chief Executive Tom Enders said the company would owe
governments buying the plane money to compensate them for delays.
"I cannot say at this point what the financial consequences are,"
he told reporters in Paris.
Mr. Alonso will take up the post on March 1, with Bernhard
Gerwert, chief executive of Airbus Defence and Space in the role on
an interim basis.
On Tuesday, Mr. Enders apologized for the performance of the
A400M program. "Let me assure you that there will be management and
organizational consequences to the program," Mr. Enders said.
The project has been hit by a series of production delays and
technical defects and Airbus in November warned that earnings could
be hit as a result. The project, which Airbus once considered
abandoning because of spiraling costs, remains unprofitable for the
company.
The situation this time is not as critical as it was a few years
ago, Mr. Enders said, calling it "significant" but not a
"catastrophe." The company will not walk away from the project nor
ask for more government money as it had in the past, he said.
Development of the A400M already ran billions of euros over cost
and years behind schedule as Airbus and its partners struggled with
birthing everything from the aircraft's large turbo-propeller
engines to some of its complex systems.
"I expect that the new team will rapidly address existing
shortfalls in the most efficient way," Mr. Gerwert said.
Airbus said the A400M program would be restructured with people
focused on building the plane and fully developing its
capabilities. Early models of the transport plane don't have all
the features customers have requested.
"We will do our utmost to overcome them so the customers receive
the aircraft they need in the shortest time possible," Mr. Gerwert
said. The company added that the in-service planes operated by
countries such as France and Turkey, "are showing good performance
with the aircraft exceeding its specifications in its strategic,
logistical role."
Airbus has booked 174 orders for the A400M, with Malaysia, a
group of six European countries and Turkey backing its development.
Some countries have cut the size of their orders.
The company needs more deals to make money on the project,
Airbus has said. Export campaigns for the plane are one of the
group's priorities this year, Airbus officials have said. The
company believes the A400M could secure orders for several hundred
aircraft.
Prospects to sell the plane could be aided by a Boeing Co.
decision to cease building the larger C-17 airlifter. The
Chicago-based plane maker said on Wednesday it had seven more of
the planes to sell.
Airbus reports 2014 full-year financial results on Feb. 27 when
it will disclose the impact on its earnings from the A400M
difficulties. A new delivery schedule would be detailed at that
time as well, Mr. Enders said.
A new position is being sought for Mr. Ureña-Raso within Airbus,
the plane maker said.
Mr. Ureña-Raso became executive vice president of military
aircraft at the Airbus Defence and Space unit a year ago. He began
his career in 1982 as an engineer at Spain's CASA that is now part
of Airbus. His replacement Mr. Alonso, also a Spaniard, joined the
Airbus jetliner unit the same year.
Write to Robert Wall at robert.wall@wsj.com
Access Investor Kit for Airbus Group
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=NL0000235190
Access Investor Kit for Fugro NV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=NL0000352565
Access Investor Kit for Airbus Group
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0092791005
Subscribe to WSJ: http://online.wsj.com?mod=djnwires