Airbus CEO Tom Enders has told workers radical measures may be needed to further cut its costs sufficiently after describing the continuing weak US dollar as having gone through the “pain barrier”.
The manufacturer had already this month said the weak US dollar rate – now pushing $1.50 against the euro - would require further measures beyond its Power8 restructuring programme as the savings envisaged from the latter were based on dollar exchange rate of around $1.35.
The manufacturer has previously indicated it needs to find additional savings of €1 billion for every 10 cent decline in the dollar.
Enders reiterated the falling US dollar would require additional savings measures during the recent Dubai air show and has now told a works council meeting in Hamburg late yesterday the manufacturer has to review its business model and look at radical measures to counter the currency impact..
“The dollar exchange rate has gone beyond the pain barrier,” he is quoted as saying during the meeting, describing the situation as “life threatening” for the manufacturer.