The French and German governments have agreed to reduce their shareholdings in EADS to 12 percent each, and drop their veto rights over key decisions. Spain will hold 4 percent. EADS said the pact will normalize and simplify its governance, while still allowing the three countries “to protect their legitimate strategic interests.”
At face value, Europe’s EADS group appeared to come off slightly worse than its U.S. rival Boeing from financial results announced in late July. EADS reported a 23-percent drop in operating profits for the first half of this year, compared with a 22-percent decline at Boeing over the same period.
European Aerospace and Defense Systems (EADS) is the world’s second-largest aerospace and defense company (after Boeing).
The next 30 days or so will be critical to the future of Airbus and its EADS parent company as top executives struggle to push through the core elements of the European airframer’s Power8 restructuring plan.