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Airbus to Slash Number of Sub-Contractors

The European aircraft manufacturer Airbus has announced plans to reduce the number of sub-contractors used by the company by 80 percent. An Airbus spokesperson said the number of sub-contractors will drop from nearly 3,000 to about 500.

Airbus said it also plans to cut administrative costs by around 900 million euros and supply costs by 350 million euros by 2010.

The cost-cutting measures are all part of a restructuring programme implemented to relieve some of the financial strain caused by problems surrounding the A 380 super-jumbo, which is now two years behind schedule.

Airbus to Slash Number of Sub-Contractors