This week is going to be rough on EADS and Airbus. But rougher still for Europe's highly skilled aerospace workers. Airbus wants to cut $3.5bn in costs over the next four years and this could mean a 20% reduction in labor. This sounds like the first day at University, "Look to the left of you and look to the right of you, only one of you will be here next year". It is a highly unsettling experience for those who remember it.

The UK is likely to see a big hit with a probable closing of the Filton plant (2,000 jobs). The British government announced it would finance research into new computer-modelling techniques at several British universities. This could help Airbus speed up product development by as much as 90%; but its too late because Airbus needed this help years ago. Even so, the British are muttering about how they will express displeasure. We don't think it means much. The British are deeply committed to their A330 tankers and other Euro-projects like the Typhoon. Any British Airways orders will have no state influence. The British government is essentially playing an immensely weak hand. By not investing in its national aerospace infrastructure, Britain eviscerated its aerospace industry. So much the nation that brought us the Spitfire, Meteor, Comet, Concorde, etc. Its great aviation legacy has gone the way of its Empire.

In Germany the hit is likely to be much worse. Rumors of up to 10,000 job losses are swirling. Some of the UK jobs moving there could ease the pain, but not by enough for the German government. But here again the government has forced its banks and other state (lander) to get involved because it does not want to invest itself as Daimler Benz exits the industry. (following BAE's example) Whereas the UK has no real "bite" with Airbus, the Germans have "parity" with the French. This week we will see what that really means. The French state has no hesitation in doing whatever it needs to ensure its aviation industry stays in business. As we said, its going to be a rough week, with more rough weeks to follow.

This week is going to be rough on EADS and Airbus. But rougher still for Europe's highly skilled aerospace workers. Airbus wants to cut $3.5bn in costs over the next four years and this could mean a 20% reduction in labor. This sounds like the first day at University, "Look to the left of you and look to the right of you, only one of you will be here next year". It is a highly unsettling experience for those who remember it.

The UK is likely to see a big hit with a probable closing of the Filton plant (2,000 jobs). The British government announced it would finance research into new computer-modelling techniques at several British universities. This could help Airbus speed up product development by as much as 90%; but its too late because Airbus needed this help years ago. Even so, the British are muttering about how they will express displeasure. We don't think it means much. The British are deeply committed to their A330 tankers and other Euro-projects like the Typhoon. Any British Airways orders will have no state influence. The British government is essentially playing an immensely weak hand. By not investing in its national aerospace infrastructure, Britain eviscerated its aerospace industry. So much the nation that brought us the Spitfire, Meteor, Comet, Concorde, etc. Its great aviation legacy has gone the way of its Empire.

In Germany the hit is likely to be much worse. Rumors of up to 10,000 job losses are swirling. Some of the UK jobs moving there could ease the pain, but not by enough for the German government. But here again the government has forced its banks and other state (lander) to get involved because it does not want to invest itself as Daimler Benz exits the industry. (following BAE's example) Whereas the UK has no real "bite" with Airbus, the Germans have "parity" with the French. This week we will see what that really means. The French state has no hesitation in doing whatever it needs to ensure its aviation industry stays in business. As we said, its going to be a rough week, with more rough weeks to follow.