AIRBUS is to offer aerospace suppliers stakes in its European plants as part of a sweeping restructuring this month. Louis Gallois, chief executive of Airbus and its parent company EADS, is expected to reveal details of the “Power 8” plan to unions on February 20.

Airbus is being forced to cut costs by the weakening US dollar and cost overruns on its flagship A380 programme. Analysts say Gallois is likely to pledge to trim €5 billion (£3.3 billion) from the cost base by 2010, with annual savings of an extra €2 billion later.

Power 8 has caused consternation in France and Germany, where big job losses are feared. German unions said last week that up to 8,000 of Germany’s 23,000 Airbus jobs were at risk. French and German politicians have met Gallois in recent days to air their concerns.

UK aerospace sources said the main impact at its British plants — Airbus makes wings and landing gear at its Broughton and Filton factories — would be a cull of contract staff. “At the moment it does not look like there will be too much of an effect on directly employed staff, but I don’t think that could be said for contract workers,” said a source.

But industry leaders fear for the UK’s long-term workload. Recent comments by Airbus executives appear to suggest that some work on the wings for the A350, a proposed mid-size jet, could go to Spain and Germany. The new wings will be made of composite materials, and Airbus and EADS have composite manufacturing centres outside Britain. “We feel the UK has earned its strategic position in Airbus and will continue to do so in the future,” said John Wall, general secretary of the Confederation of Shipbuilding and Engineering Unions.

Gallois is expected to try to avoid plant closures by inviting suppliers to invest in or buy outright some of the group’s smaller manufacturing units. Britain’s GKN, America’s Vought and Italy’s Alenia are all in the frame to be brought in as partners. A senior GKN source said: “We would certainly be interested to see what they are proposing.”

Boeing, Airbus’s rival, has undergone a similar outsourcing process at many of its US plants and has subcontracted the manufacture of many parts of its newest airliner, the 787, outside the US.

Mario Heinen, Airbus chief operating officer, said A380 production was unlikely to reach planned levels until 2010. It has been dogged by problems with wiring harnesses and is running two years late. Airbus has been forced to pay compensation to airlines for delayed deliveries.

Last month it fixed wiring problems on the first aircraft to enter commercial service, which will be delivered to Singapore Airlines in October. Another 21 aircraft need to be rewired, Heinen said.

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