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December 2007 edition

EADS warns of impending changes within manufacturing

Some Airbus manufacturing could be moved outside Europe, the head of European aerospace company EADS has said. Chief executive Louis Gallois cited dollar weakness as "our main problem." Although most of Airbus's costs are in euros, the price of its aircraft is in dollars.

Airbus manufacturing is currently conducted in Europe and the UK, which has not adopted the euro. It also has a final assembly plant in China while EADS has a helicopter plant in the United States. The company is competing with Boeing for a contract to build in-flight refuelling tankers from the US Air Force.

Doubts over the security of a $600m deal to modernise India's military aircraft have further increased the pressure. While India's Ministry of Defence denied that the deal was being scrapped, it confirmed that the ....

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