Recommendation report for Airbus Essay Example | Topics and Well Written Essays - 3500 words

Recommendation report for Airbus - Essay Example As the essay stresses one of the important aspects that Airbus has to consider in framing its policy over the next five years is contract management, because thus far, it has not been able to effectively manage them. A part of the problems Airbus is facing now have to do with a botched French deal that went wrong. EADS, the parent company of Airbus came into being through the disposition of 37.9% of Airbus shares that were owned by a French public sector enterprise, Aerospatiale, to a private investor, Noel Forgeard. While the deal was originally intended to provide Airbus with a long term, French private sector shareholder to aid the process of privatisation, it has proved to be a botched up job that has aided the downfall of Airbus. From this research it is clear the problems arose when Forgeard sold his shares to Daimler in Germany, thereby disturbing the equity stake and ownership percentages of the French Government, acquired through disposition of its ownership in Aerospatiale. Furthermore, the original intent behind the formulation of EDAS was to provide strong European competition for the American giant Boeing, but fluctuations in exchange rates have not proved favourable to the Company’s sales in the market. It appears likely that some of these problems could have been addressed if the contracts had included certain provisions; for example stipulating that ownership of Forgeard’s shares were to remain within France.