European Aeronautic Defence and Space Company

European Aeronautic Defence and Space Company (EADS) is a large European industrial corporation of the aerospace business, formed by the merger on July 10, 2000 of Aerospatiale-Matra of France, Dornier and DaimlerChrysler Aerospace AG (DASA) of Germany, and Construcciones Aeronáuticas SA (CASA) of Spain. As of 2003, EADS employs more than 100,000 people at 70 production sites worldwide. Legally incorporated in Amsterdam, its corporate headquarters are located in Ottobrunn, south of Munich.

EADS operates with two co-CEO's, currently Philippe Camus and Rainer Hertrich.

Table of contents

1 History and activities 2 Subdivisions 3 Shareholders (July 2004) 4 Criticism 5 External links

History and activities

EADS was formed by its member companies in July 2000, to become the world's second largest aerospace company (after Boeing). EADS is also the second-largest European arms manufacturer (after BAE SYSTEMS.) The company develops and markets civil and military aircraft, as well as missiles, space rockets, and related systems.

In November 2003, EADS announced that it was considering working with Japanese companies, and the Japanese METI, to develop a hypersonic airliner intended to be a larger, faster, and quieter, replacement for the Concorde, which was retired in October the same year.

EADS is a major contributor to the International Space Station, and is expected to deliver the Columbus Laboratory Module in 2004 through its subdivision EADS Space Transportation.

Subdivisions

• Airbus Industrie
  EADS owns 80% of Airbus in a joint ownership with BAE Systems which owns the remaining 20% (May 2004))
• Military Transport Aircraft
  • Shareholder in Airbus Military, developer and manufacturer-to-be of the A400M – competitor to Lockheed Martin's Hercules
  • Airbus military applications – e.g. A310 MRTT and A330 MRTT conversions
• Aeronautics
• Space
  • 100% shareholder in satellite company EADS Astrium (after buying out BAE Systems' 25% stake on January 30, 2003)
  • 100% shareholder in EADS Space Transportation, responsible for the Ariane launchers and orbital systems such as the Columbus orbital facility.
  • 100% shareholder in EADS Space Services, formed mostly from Paradigm Secure Communications Ltd, a defense satellite operator for the UK MoD (operating the Skynet 5 system)
  • 28% shareholder in space transport operator Arianespace (largest commercial shareholder)
• Defence and Security Systems
  • Defence Electronics, the sensors and avionics house of EADS
  • Military Aircraft
    • Dassault Aviation (45.76%), manufacturer of fighters and other military aircraft
    • Eurofighter GmbH (46%), manufacturer of Eurofighter Typhoon.
    • Eurocopter Group (100% ownership), manufacturer of light and medium civil and military helicopters
  • Missiles
    • MBDA (37,5%)
    • LFK
  • Defence and Communications Systems, system house
  • Services

Shareholders (July 2004)

• Publicly traded 34.3% (Paris stock exchange, Frankfurt stock exchange, Madrid, Bilbao, Barcelona and Valencia stock exchanges)
• DaimlerChrysler 30.1%
• SOGEADE 30.1% (50% French government body, SOGEPA and 50% Désirade)
• SEPI 5.5% (Spanish state holding company)

On July 17 2004 The Economist reported that the three major shareholders, DaimlerChrysler, SOGEADE and SEPI, intend to sell their shares by 2006–2007. DaimlerChrysler would like extra capital to invest in its core activities, the Lagardère Group (controls Désirade) wants to withdraw from defence aerospace, and the French government is pursuing privatisation where appropriate.

EADS, seen very much as a European, rather than global, company by America would benefit from increased ownership by that country's major investors. This, and an increased manufacturing presence in North America would increase the prospects of orders from the DoD, a position BAE Systems already enjoys.

Criticism

Like any large industrial conglomerate which manufactures weaponry, EADS has been subjected to criticism. Alleged wrongdoings include:

• The delivery of weapons to non-NATO countries without due consideration for the political situation and the economic consequences and to countries where there is an arms race going on
• Using bribes in order to further sales in South Africa

External links

• Corporate website
• EADS Defence Electronics
• Firm considers 'son of Concorde'   –  BBC News, 23 November 2003

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