Aeronautics

Introduction French aeronautic and space industry Airbus, just taking off EADS, the giant of the sector

Formed in 2000, EADS emerged from the commonsense industrial logic that each European nation could not compete in aerospace alone. Today, French and German interests hold 30% each while Spain holds 5.5%. British interests are represented indirectly, via BAE Systems’ 20% share of Airbus.

The group divides its activities into five units: aeronautics, Airbus, space, defence and military aircraft. Sales in 2004 reached €31.8Bn of which defence made up €8.5Bn. While Airbus will remain the largest component of sales and profits (40% of EBIT), the defense activities look set to increase thanks to the fullest order book in Europe (€46Bn).

The group faces two issues. Firstly, its internal management. The appointment of the new CEO should be revealed this month. The whisper is that the present CEO of Airbus, Noel Fougeard, will be appointed.

The second issue is a proposed merger or at least industrial tie-up with French defence group Thales. It would make operational sense but present new challenges.