GKN has become a key focus of attention in Airbus's Power8 restructuring plan, which hinges on the divestment to risk-sharing partners of several manufacturing sites in Germany, France and the UK.
With the dollar-euro exchange rate causes pain for the eurozone-based airframer, its Power8 bid to cuts costs by €2.1 billion ($3.2 billion) a year is becoming ever-more urgent, but so far the programme's most notable outcomes have been two failures to move ahead.
Earlier this year, Power8 started to look shaky. First, Airbus and MT Aerospace could not agree terms that would see the latter take over sites in Augsburg, Nordenham and Varel, Germany.
Then the same fate befell negotiations with French aerostructures maker Latécoère, leaving Airbus holding - for the foreseeable future - Meaulte and Saint Nazaire Ville in France.
The failures of those two deals have been in part attributed to the gathering economic clouds, along with rising finance costs rising and relentless exchange rate pressure.
But while the same factors could in theory scupper a deal to sell to GKN part of the wing manufacturing site at Filton, UK, all expectations are that the two sides will reach an accord soon.
GKN chief executive Sir Kevin Smith says: "GKN greatly values its existing relationship with Airbus, which has been built up over 20 years and includes participation in the A320, A330/A340, A380 and A400M programmes. We look forward to further strengthening that relationship. Our vision for the Filton site will create a globally competitive UK centre of excellence for the design and manufacture of composite aircraft wing structures."
As Howard Wheeldon, chief strategist at BCG Partners, told Flight earlier this year, what makes a Filton deal more likely is the fact that the UK government - unlike its French and German counterparts - has no equity stake in Airbus or its parent, EADS, and hence a deal with GKN will not fall foul of the French-German rivalry that may still dog Airbus, despite the recent move to streamline management by doing away with EADS's historical structure of joint French and German managers in favour of a normal corporate structure with one chairman and one chief executive.
Meanwhile, Airbus has chosen a Diehl-Thales partnership as its preferred bidder to take over its cabin interiors plant at Laupheim, Germany.
Airbus executive vice-president for programmes Tom Williams says the airframer hoped to announce a Laupheim deal at the same time as one for Filton.
Williams says that the nature of the business at Laupheim means a deal should be less affected by the issues that affected the MT and Latécoère sales.
Source: Flight International
