EADS CEO asks suppliers to move ops to dollar area

BERLIN, April 22 (Reuters) - European defense and aerospace group EADS (EAD.PA), whose Airbus plane-making unit is suffering from record euro strength, called on suppliers to help it reduce costs by moving more of their production to the dollar area.

With the European single currency touching a fresh all-time high above $1.60 on Tuesday, Chief Executive Louis Gallois said it was necessary to rethink the group's business model and make tough choices, such as the sale of several Airbus plants and one EADS site.

"But this is not enough," he said, asking for assistance from the company's suppliers.

Airbus incurs most of its production costs in euros but sells its aircraft in dollars, putting it at a disadvantage to U.S. rival Boeing Co (BA.N).

Underlining its precarious situation, Airbus has been forced to announce an increase in its dollar list prices to compensate for rising metal prices and the weak greenback. (Reporting by Kerstin Doerr, editing by Gerald E. McCormick)