Big Changes Are Coming To Airbus C Suite Amid Corruption Probes

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Airbus ( EADSY ) said Friday that CEO Tom Enders will step down when his term ends in February 2019 and COO Fabrice Bregier, who had been seen as his successor, will leave in February.

[ibd-display-video id=3025352 width=50 float=left autostart=true] The shake-up comes as the aerospace giant faces investigations in several European countries and pushes for a settlement with French and U.K. anti-corruption authorities.

Guillaume Faury, currently CEO of Airbus Helicopters, will become head of the commercial aircraft unit, potentially putting him next in line to be CEO though the company said it will conduct a search for a new chief.

But Airbus held off on giving Faury the title of COO and will decide after Bregier leaves, sources told Bloomberg .

The company will examine CEO candidate inside and outside Airbus with the goal of announcing a pick at the annual shareholder meeting in 2019.

Airbus' U.S.-listed shares closed down 0.5% at 24.92 on the stock market today after slumping 4% Thursday on reports of the shake-up. Rival Boeing ( BA ) ended flat at 293.94. Boeing lost out to Airbus in a massive $12.7 billion order from Delta Air Lines ( DAL ) Thursday.

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Airbus announced "certain inaccuracies" with its regulatory filings regarding U.S. arms exports in October and the U.K Serious Fraud Office and France's Parquet National Financier are looking into reports of alleged corruption . Germany and Austria are also investigating the company. Airbus faces potential penalties in the U.K and France.

The executive turnover comes after John Leahy , its legendary head of sales, announced his retirement last month. Eric Schulz, currently president of civil aerospace at Rolls-Royce will join Airbus at the end of January.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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