European aircraft company Airbus leadership under fire as crisis deepens

TOULOUSE/PARIS — Airbus is engulfed in a fresh bout of speculation over the future of senior managers as corruption probes rattle the aerospace company and add fuel to a long-running clash of egos at the top, people familiar with the group said.

Board directors meeting on Thursday are seeking to contain damage from multiple international fraud investigations over commercial and military sales, while getting a grip on what could become a chain reaction of departures, insiders said.

“You can’t rule out a change of governance before the end of the year,” a senior source close to the company said.

Others are more cautious, pointing to 2018 as the pivotal period for a company enjoying a record share price but struggling to maintain its sales position against rival Boeing.

So far, investors have been sanguine about the impact of investigations and a loss of sales momentum, but coupled with senior retirements, the sense of uncertainty is deepening. “You won’t recognize the company within 12-18 months,” a person who deals closely with Airbus said.

Chief Executive Tom Enders has indicated he will not stay beyond his current term which ends in 2019, reported on Tuesday, reversing a position taken in April.

Mr. Enders, who is seen as increasingly isolated after losing a top aide last week and facing a backlash over compliance reforms, has said his future is up to him and the board.

“Reports of my demise are premature and exaggerated,” he told Reuters on the sidelines of an aircraft delivery ceremony in Toulouse on Wednesday. —