Europe's industrial might, embodied by Airbus, announced a significant financial uplift on July 22, with shares jumping over 6% after the planemaker launched a €5 billion share buyback. This financial strength, however, comes amidst ongoing questions about national influence within the company's leadership structure. The move signals a robust outlook for the aerospace giant, yet the underlying mechanisms of its governance raise concerns for those prioritizing national sovereignty.
Airbus is now targeting a core profit of €12 billion to €13 billion in 2029. This figure represents a near doubling from last year's €7.13 billion and significantly surpasses its 2026 target of €7.5 billion. Such ambitious targets underscore the company's economic power, a critical component of European industrial capacity.
Europe's Industrial Strength
The company aims to increase narrowbody jet production to 70 to 75 aircraft a month by 2027, a substantial rise from the current rate of around 60. This production boost is vital for maintaining Europe's competitive edge in global manufacturing. However, Airbus remains in talks over 2027 engine supplies from Pratt & Whitney, highlighting a persistent reliance on external suppliers that can compromise true industrial independence. Airbus Commercial CEO Lars Wagner stated the company would decide this year on higher production for the A350, aiming for a rate between the current goal of 12 a month and 20. He also confirmed studies for stretched versions of both the A350 and the smaller A220, indicating a focus on expanding product lines.
The main commercial aircraft business is expected to generate approximately €10 billion in operating profit by 2029. Airbus also maintained its delivery target for 2026, signaling confidence in its operational capabilities. Rolls-Royce CEO Tufan Erginbilgic confirmed on Tuesday that Airbus was engaging with airlines interested in the A350, adding, "We are working with them." This collaboration points to the complex web of European and international partnerships that define the aerospace sector.
The Question of National Control
Amidst these financial successes, the issue of appointments within Airbus remains sensitive. Guillaume Faury, the current CEO, did not rule out staying on when his mandate expires in 2028. He stated, "I am fully available for the board to do what they think is appropriate for the company and enjoy what I'm doing," emphasizing a team-based approach. However, the company's governance, which adopted a "market-friendly" approach in 2013 after years of Franco-German power-sharing, still pays close attention to the balance of nationalities in its top positions. This practice, while presented as a balancing act, can be seen as a dilution of direct national influence over a strategic European asset.
Sources close to the company revealed that Airbus's decision to name Amparo Moraleda of Spain, a longstanding board member, as its next chairperson was a strategic move. This appointment came instead of the expected choice of a French candidate to succeed Germany's Rene Obermann. This specific choice provided the necessary flexibility for Faury, a French national, to potentially extend his tenure. The company's policy of avoiding two French or two German individuals in the top jobs underscores a deliberate effort to distribute power, rather than allowing national interests to fully dictate leadership. For those who believe in strong national sovereignty, such arrangements raise questions about who truly controls Europe's industrial champions and whether national interests are adequately represented.