When asked in early November at the Dubai Air Show about the impact of the weak dollar on Boeing, VP of Marketing for Boeing, Randy Tinseth replied, “I don’t know if it necessarily hurts or helps us, but I’m sure it’s not helping our competition.”
Less than two weeks later, Airbus CEO Tom Enders was saying that the Euro had passed, “The pain barrier” and was forcing cuts to the European aerospace giant’s research and development budget.
Louis Gallois, CEO of EADS reinforced the need for a change in an interview in early December, saying, “if the dollar rate stays the way it is now, we will have to shift parts of our production and supplier business to the dollar zone.”
In response to its Power8 reorganization plan, Airbus decided to divest itself from French manufacturing plants in Meault, Saint Nazaire, German plants in Nordenham, Varel and Augsburg, as well as a plant in Filton in the UK.
Airbus announced its decision today to distribute the the sites amongst GKN, Latecoere, and MT Aerospace, all three are European companies based in the UK, France and Germany respectively. It had been thought that Kansas based Spirit Aerosystems was the leading contender to receive all of the sites because it allowed Airbus to move key portions of its business into the dollar-zone, thus beginning to deliver some relief from the weak dollar, which it sells its airplanes in. Had Spirit been selected it would’ve given an opportunity to potentially relocate the manufacturing capability outside of the euro-zone to an area with lower costs and a more favorable exchange rate.
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This post originally appeared at Flightglobal.com from 2007 to 2012.

Image courtesy
Image Courtesy Boeing