Leadership Transition at Airbus

By Tim Hepher
PARIS (Reuters) – Europe's Airbus has announced a surprise leadership shift in its largest business. Lars Wagner, the head of German engine-maker MTU Aero Engines, is set to replace Christian Scherer as the chief of planemaking starting in 2026.

This marks the second significant management change Airbus has made in just over a year, though CEO Guillaume Faury insisted it was not a response to recent performance issues as the company maintains its delivery targets. The succession planning comes amid a history of management upheaval at Airbus, but sources indicate that MTU's insistence on Wagner's decision regarding his future played a role in this transition.

MTU confirmed Wagner would not extend his contract, which expires on December 31, 2025. Faury reassured that the succession strategy would allow for a smooth transition, although details about the timing remain vague. He praised Wagner as an exceptional executive, emphasizing continued collaboration with Scherer to enhance production in challenging conditions.

Scherer, a longtime Airbus insider and former head of sales, had not been expected to remain in his role long due to impending retirement. Analysts noted the announcement of a successor comes sooner than anticipated, particularly as challenges in meeting delivery targets lingered.

Wagner, formerly an Airbus industrial leader and current head of MTU, is expected to adopt a firmer stance towards Pratt & Whitney amid rising tensions between the engine collaborators. This leadership shift coincides with an announcement of Airbus’s impressive quarterly profit results, which rose 39% to 1.407 billion euros, above expectations, with a 5% revenue increase to 15.689 billion euros.

Faury also mentioned concerns over potential trade tensions, particularly regarding proposed tariffs on imports by U.S. presidential candidate Donald Trump. Following significant financial setbacks with its satellite division, Airbus has refrained from incurring new charges but warns that further losses may arise, especially from its OneSat project.

In addressing supply-chain challenges that might impede A350 ramp-up in 2025, Airbus has been monitoring issues related to Spirit AeroSystems, which could affect timely deliveries. Notably, Airbus recently delivered its first A321XLR jet to Iberia and secured a sizable order from Saudi startup Riyadh Air.

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