A NEW Franco-German struggle for control of Airbus is looming after the announcement that Europe’s aircraft manufacturer would face tighter scrutiny from its parent group, EADS.

The move is likely to spark a tussle between Airbus’s new French head, Christian Streiff, and the joint chief executive of EADS, Thomas Enders, who is German.

In a shake-up announced after 20 days of crisis, EADS’s management was told to tighten its hold on the aircraft- making subsidiary, which has traditionally had a large measure of autonomy.

With M Streiff reporting directly to Herr Enders, the German executive has an opportunity to emerge as the central figure within Europe’s aerospace and defence giant.

Last night EADS said that the details of its new relationship with Airbus had yet to be finalised, presaging a fresh round of negotiations between the German and French camps.

DaimlerChrysler, the German carmaker which has a 22.5 per cent stake in EADS, is pressing for Herr Enders to take effective control of Airbus.

But Lagardère, the French media group that has a 7.5 per cent holding, is keen to maintain a balance between the German joint chief executive and his newly appointed French counterpart, Louis Gallois.

The negotiations follow the deal hammered out on Sunday in an effort to end the turmoil sparked by delays in delivering Airbus’s flagship A380.

Noël Forgeard, the French joint chief executive who was one of five EADS managers criticised for exercising stock options in March, resigned, four days after saying his departure was “out of the question”. He was replaced by M Gallois.

Gustav Humbert, the German head of Airbus, also quit. His job was taken by M Streiff.

A source close to the talks said DaimlerChrysler had insisted on the dismissal of M Forgeard, but tried to keep Herr Humbert. In a sign of the tensions within the group, Lagardère said the two men had to leave together — or not at all.

The deal represented a defeat for the French Government, which has a 15 per cent stake in EADS.

Ministers in Paris wanted to end the Franco-German balance of power within the group, which has two chairmen and two chief executives, one from each country.

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