Saturday, April 20

Airbus CEO To Step Down In 2019, Know Why

European multinational corporation Airbus that designs, manufactures, and sells civil and military aeronautical products worldwide recently said that its CEO Tom Enders will step down from his post in April 2019.

Airbus is now preparing for a complete transition of its top management with the departure of two seniors as the planemaker grapples with corruption allegations.

The company said Enders, who will have been at the helm of Airbus and defense firm EADS for 14 years, won’t seek another term.

The 59-year-old was quoted Friday as saying Airbus needs “fresh minds for the 2020s” and he would use the remainder of his time to ensure a smooth transition and to strengthen the company’s ethics and compliance programs.

While Enders will be stepping down when his term ends in 2019, Airbus Chief Operating Officer Fabrice Bregier is also set to leave, as soon as February, some people familiar with the matter said, upon the condition of anonymity.

Breiger will be succeeded by Guillaume Faury, CEO of the helicopters business, becoming first in his line to ever take over as a top executive.

The management changes, to be announced as soon as Friday, come as Airbus alleged with corruption claims related to ongoing bribery investigations. 59-years-old Enders, has warned the probe may lead to “significant penalties” and is trying to convince investigators in France and the U.K. that Airbus is serious about cleaning house as it works to get past the controversy.

Airbus simply cannot afford to let the succession drag. As well as contending with the corruption claims, the Toulouse, France-based company is pondering whether to scrap its flagship A380 superjumbo model amid sluggish demand.

Enders record as a CEO is mixed up. He rose through the ranks at Airbus and was appointed chief after previously running the commecrial plane making unit.