Airbus chief says new funds necessary

PARIS – Airbus chief executive Louis Gallois said yesterday there was “no urgency for a capital increase” by parent company EADS, but he recognised that the group would need external finance in the future.

“There is no urgency for a capital increase. The cash flow of EADS is positive but we known that in the future, in the next few years, we will need external finance,” Gallois, who is also co-chief executive of EADS, said on RTL radio.Asked about the amount the group would seek to raise, he said the figure would be “less” than five billion euros.The supervisory board of EADS has instructed the management board to explore all ways of raising finance, and has said that proposals, either to raise capital or to issue bonds, will be put to a vote at a general meeting of shareholders in May.Any capital increase would be in addition to state aid promised to help launch the new A350 series of mid-size long-haul aircraft that Airbus hopes will be a serious competitor to Boeing’s 777 and its future 787 Dreamliner.The French government has said that as a shareholder in EADS it would support any capital increase.Finance Minister Thierry Breton said Tuesday that he hoped there would be a capital increase but also stressed that EADS had “abundant financial resources up to 2010,” although it would need 10,0-11,0 billion euros from 2011.Nampa-AFPThe cash flow of EADS is positive but we known that in the future, in the next few years, we will need external finance,” Gallois, who is also co-chief executive of EADS, said on RTL radio.Asked about the amount the group would seek to raise, he said the figure would be “less” than five billion euros.The supervisory board of EADS has instructed the management board to explore all ways of raising finance, and has said that proposals, either to raise capital or to issue bonds, will be put to a vote at a general meeting of shareholders in May.Any capital increase would be in addition to state aid promised to help launch the new A350 series of mid-size long-haul aircraft that Airbus hopes will be a serious competitor to Boeing’s 777 and its future 787 Dreamliner.The French government has said that as a shareholder in EADS it would support any capital increase.Finance Minister Thierry Breton said Tuesday that he hoped there would be a capital increase but also stressed that EADS had “abundant financial resources up to 2010,” although it would need 10,0-11,0 billion euros from 2011.Nampa-AFP