BAE warns on 'challenging outlook' as it confirms exit

The successful launch of its first A380 passenger flight last week did little to calm turbulence at Airbus, with the sacking of A380 programme chief Charles Champion sparking speculation that other high-profile careers could be about to crash-land.

The mood at Airbus was scarcely lifted by the board of BAE Systems justifying its decision to finally sell its 20% stake in the airframer by warning that Airbus is "facing a challenging short to medium-term outlook". EADS will pay the UK defence giant €2.75 billion ($3.52 billion).

The dismissal of Airbus's number two - who steered the A380 from launch to first flight - comes as new chief executive Christian Streiff prepares to complete his 100-day review of the A380 and Airbus operations in a bid to restore the manufacturer's credibility. Towards the end of that period, before the end of September, EADS will announce whether the ultra-large aircraft's revised programme schedule remains on track. In June, Airbus was forced to announce the second programme delay in less than 12 months.

Champion is replaced by the head of Airbus single aisle programmes, Luxembourg's Mario Heinen (50), who joined Airbus in 1999 from Lufthansa Technik. Head of Airbus centres of excellence, Frenchman Alain Flourens, takes Heinen's job.

Streiff has made Champion his special advisor and eliminated the chief operating officer (COO) position in an effort to flatten the company's reporting structure, although John Leahy remains COO for customer affairs. Heinen and Flourens will report to Tom Williams, whose role has been expanded as executive vice-president programmes to cover all Airbus families including the A380.

Champion's dismissal follows the departure of chief executive Gustav Humbert and EADS co-chief executive Noel Forgeard in July, but it may still not be enough to put the turmoil of the last few months behind Airbus. Several senior industry sources tell Flight International that there are likely to be more casualties within the two organisations.

Champion (51), who became Airbus COO in July last year, began his career in 1980 with Aerospatiale as an engineer in aerodynamics. In 1993 he became the French company's director of Airbus programmes and in 1995 was appointed managing director of the Future Large Aircraft which became the A400M. Champion joined Airbus in 1998 and rose to the position of product executive for Airbus's single aisle programme before being given the reins of the A380 in 2001.

Source: Flight International