Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06MUNICH437, EADS/AIRBUS CRISIS -- THE VIEW FROM EADS' MUNICH

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06MUNICH437.
Reference ID Created Released Classification Origin
06MUNICH437 2006-07-13 12:41 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Munich
VZCZCXRO7783
PP RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHMZ #0437/01 1941241
ZNR UUUUU ZZH
P 131241Z JUL 06
FM AMCONSUL MUNICH
TO RUEHC/SECSTATE WASHDC PRIORITY 3358
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCPDOC/USDOC WASHDC 0007
RUCNMEU/EU INTEREST COLLECTIVE
RUCNFRG/FRG COLLECTIVE
UNCLAS SECTION 01 OF 03 MUNICH 000437 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR EUR/AGS, EUR/ERA AND EB/IFD/OMA 
PASS TO USTR MOWREY 
 
E.O. 12958: N/A 
TAGS: ECON EAIR ETRD PGOV EINV PREL EUN FR GM
SUBJECT: EADS/AIRBUS CRISIS -- THE VIEW FROM EADS' MUNICH 
HEADQUARTERS 
 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
REFS: A) Berlin 1803, B) Paris 4277 
 
------- 
SUMMARY 
------- 
 
1.  (SBU) Senior German EADS officials told the Consulate 
that Noel Forgeard's departure was necessary for EADS to 
move beyond its current mess, and the Forgeard affair was 
but one example of the challenges of dealing with spotlight- 
seeking French partners.  As for BAE's divestiture of its 
EADS shares -- it was a case of good riddance.  The 
officials said the A380 program was unfairly suffering from 
bad press due to inevitable teething pains, but would 
ultimately prove a technological and commercial success. 
Nevertheless, Airbus had made some mis-steps that 
contributed to an improved competitive position for Boeing. 
End summary. 
 
--------------------------------- 
EADS -- NOT JUST A FRENCH COMPANY 
--------------------------------- 
 
2.  (SBU) POL/ECON Officer and Econ Specialist met July 10 
with two senior European Aeronautic, Defense and Space 
Company (EADS) officials.  One of the officials manages 
DaimlerChrysler's 22.5 percent EADS share, and the other is 
in the office of EADS' German co-CEO, Thomas Enders.  EADS 
is the corporate parent of Airbus and Eurocopter, and also 
has defense and space divisions.  EADS has a dual CEO 
structure, with one German, the other French.  Similarly, 
the corporate headquarters is physically split between 
Munich and Paris.  DaimlerChrysler is generally viewed as 
representing the German national interest in EADS as the 
German government does not directly hold shares in the 
company, unlike the French government. 
 
------------------- 
THE FORGEARD AFFAIR 
------------------- 
 
3.  (SBU) When asked about Noel Forgeard's unceremonious 
exit from the French co-CEO slot at EADS, one of our 
contacts made clear Forgeard's departure was for the good 
of the company.  He described Forgeard was an over- 
ambitious "maniac."  The German-half of EADS never knew if 
he acted with the backing of the French government, or was 
promoting his own agenda.  This was especially true last 
year when he attempted to abolish the shared French-German 
leadership structure at EADS and claim the top job for 
himself.  Our contact assumed this power-grab was driven by 
prestige.  To be on equal footing with his counterparts in 
French industry, namely the CEOs of the CAC-40 firms, 
Forgeard needed to be unrivaled in his leadership of the 
company -- not a co-CEO. 
 
4.  (SBU) Both officials told us that from the German 
perspective, it made sense to preserve co-leadership at 
EADS for the time being because, as the French made the 
current mess, it should, after-all, be cleaned-up by a 
Frenchman.  It was a positive development that former 
French railways chief Louis Gallois had been picked to 
replace Forgeard.  Thomas Enders would have had less clout 
with French managers and government officials. 
Additionally, Gallois was a skilled manager with experience 
in the aeronautics industry. 
 
----------------------- 
DEALING WITH THE FRENCH 
----------------------- 
 
5.  (SBU) Our contacts said many of EADS' internal problems 
stemmed from France's inability to come to terms with the 
fact it was incapable of maintaining its own national 
aerospace industry.  They mentioned the late-1960's 
Dassault "Mercure," a French attempt to compete with the 
Boeing 737, of which only 17 units were ever sold.  They 
continued that the French view seems to be that France is 
the innovator, uniquely capable of coming up with aircraft 
concepts/designs, while the Germans are content with 
product execution.  Not only was this not the case, but the 
A380 was actually the brainchild of a German engineer, 
 
MUNICH 00000437  002 OF 003 
 
 
Juergen Thomas.  As if to illustrate the French penchant 
for dominating the spotlight, one of our contacts turned to 
the other and joked, "What, you mean we're not a French 
company?" 
 
6.  (SBU) One our contacts related how after some French 
officials reacted to the Forgeard crisis by publicly 
calling for more French government influence over EADS, 
French government officials called Enders' office and asked 
for copies of the EADS shareholder agreement.  [Note: The 
shareholder agreement excludes the French government's 
influence on operational decisions.  End Note]  Having 
studied the agreement, the French then stepped back from 
their push for greater influence the next day. 
 
7.  (SBU) Asked about the recent decision by the British 
BAE Systems to divest itself of its 20 percent stake in 
EADS, our contacts characterized this as a case of good 
riddance.  BAE had been a schizophrenic partner anyway, 
never quite knowing if it was a European company, or a 
quasi-U.S. firm. 
 
----------- 
A380's Woes 
----------- 
 
8.  (SBU) Both officials reported that EADS' management had 
been taken by surprise over the reaction by the media and 
financial markets to the delays with the Airbus A380. 
Further, Forgeard's comments blaming Airbus' Hamburg 
production facility for the wiring harness problem were 
unjustified.  This was a case of "garbage in, garbage out" 
-- Hamburg was producing harnesses with configuration 
information from Toulouse -- the problem did not lie in 
Germany. 
 
9.  (SBU) Our contacts downplayed recent reports that the 
A380 would generate significantly more wake turbulence than 
expected, resulting in an ICAO requirement that other 
aircraft have a 10 nautical mile safe following distance 
from A380s -- double the normal separation.  They said the 
reports overstated the problem, and in reality, an A380 
would generate only slightly more wake than a Boeing 747. 
One of the officials confided that on the day of our 
meeting, Airbus was doing wake testing in Oberpfaffenhofen 
on one of its four flight-capable A380s, as well as a 747. 
The company hoped these tests would vindicate the A380. 
Even if the 10 nautical mile separation rule remained in 
place, the official said he did not expect there would be 
enough A380 traffic at a given airport for it to be a 
significant problem. 
 
10.  (U) In spite of the delivery problems, our contacts 
were confident that the A380 project would ultimately be a 
success.  Airbus needed to sell 300 of the aircraft to 
break-even -- a goal they believed to be attainable given 
that the A380 is only at the beginning of its 25-year 
product life cycle. 
 
----------------- 
BOEING VS. AIRBUS 
----------------- 
 
11.  (U) Both men conceded that Airbus was facing a tough 
year in its competition with Boeing, but both were 
confident that Airbus would catch up.  [Note: Airbus orders 
are down 58 percent for the first half of 2006 compared to 
the same period last year, with Airbus trailing Boeing by 
363 orders year-to-date.  End Note]  Our contacts 
acknowledged that with its focus on the A380, Airbus had 
misjudged customer's interest in Boeing's 787 Dreamliner. 
Airbus had also not expected the remarkable reliability of 
the twin-engine Boeing 777, which had pulled customers from 
the less-efficient four-engine Airbus A340.  One of our 
interlocutors, while expressing admiration for the 777's 
record, pointedly said that a mid-ocean failure of both 
engines on a 777 would bring customers back to the A340. 
 
12.  (U) The officials also blamed the media for ignoring 
good news from EADS, including the U.S. Army's recent 
announcement that it had awarded a USD 3 billion contract 
to EADS subsidiary Eurocopter to provide up to 352 UH-145 
light utility helicopters -- Eurocopter's first U.S. 
defense contract.  They expressed the hope this was a good 
 
MUNICH 00000437  003 OF 003 
 
 
omen for EADS' bid to get a contract to build tankers for 
the U.S. Air Force, even if only a split contract with 
Boeing. 
 
------- 
COMMENT 
------- 
 
13.  (SBU) The Forgeard/EADS crisis has been widely 
portrayed by the media as a French affair -- a notion the 
German management of EADS appears content not to challenge. 
However, underneath the stoic German face of EADS is 
obvious frustration with the damage and embarrassment the 
French partnership has caused the firm.  Despite our 
contacts' stated optimism regarding the prospects of the 
A380 program and the ability of Airbus to respond to the 
challenge of the 787 Dreamliner's success, one had the 
impression they, and their colleagues, feel at present a 
little like Hans Brinker -- in this case doing their best 
at damage control. 
 
14.  (U) This report has been coordinated with Embassy 
Berlin. 
 
15.  (U) Previous reporting from Munich is available on our 
SIPRNET website at www.state.sgov.gov/p/eur/munich/ . 
 
ROONEY