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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Shakeup continues at Airbus

From Wire Reports The Spokesman-Review

A management shakeup at Airbus SAS and its majority shareholder marks yet another sign of the turmoil at the European aircraft maker that could work to the advantage of rival Boeing Co.

But some say the fact that Airbus and European Aeronautic Defence and Space Co. are moving quickly to try to solve those problems could pose challenges for Boeing in the long run, since it shows that Airbus is intent on rapidly turning its fortunes around.

On Sunday, Noel Forgeard, the co-chief executive of EADS, stepped down and was replaced by Louis Gallois, head of France’s SNCF rail operator and former chairman of engine maker Snecma. EADS owns 80 percent of Airbus.

The shakeup comes as Airbus is struggling to keep customers loyal amid production delays for its superjumbo A380. The European jetmaker also is fighting to win customers for its planned A350, and is widely expected to announce a redesign of the troubled aircraft.

“In a major step toward new penalties against Microsoft Corp., Europe’s antitrust regulators voted unanimously Monday in favor of fining the world’s largest software company for flouting a 2004 ruling, two people close to the case said.

The regulators backed EU plans to penalize the company but did not discuss the amount of the fine — which they will do at another meeting next week, according to the sources who spoke on condition of anonymity because no formal decision has been reached.

The European Commission threatened in December to levy daily fines of up to 2 million euros ($2.5 million) against Microsoft for not complying with an order to supply rivals with “complete and accurate” information to help them develop software that works smoothly with Microsoft’s Windows operating system.

“Japanese auto giant Honda Motor Co. plans to double its production capacity in India by next year, set up a fully owned subsidiary and invest about $650 million over the next 10 years to expand its business here, the company’s chief executive said.

President and CEO Takeo Fukui said Honda sees India as a more important market than China, and the growth potential here is the highest.

Expanding business in India is “one of Honda’s three key global strategies, together with strengthening the foundation of our business in the U.S and Japan, and enhancing Honda’s leadership commitment to protect the environment,” Fukui told reporters after a series of meetings with Indian partners.