EADS

From Wikicompany

EADS (European Aeronautic Defence and Space) is a large European industrial corporation in the aerospace research and development sector.

The company employs more than 100,000 people, at about 70 production sites worldwide.

EADS is legally incorporated in Amsterdam, The Netherlands, but the company's headquarter is located in Ottobrunn, south of Munich, Germany.

Subsidiaries

• Airbus S.A.S.
  EADS owns 80% of Airbus in a joint ownership with BAE Systems which owns the remaining 20% (May 2004). Airbus headquarters are located in Toulouse, France.
• 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
  EADS Socata, manufacturer of small aircraft
• EADS SPACE
  • 100% shareholder in satellite company EADS Astrium (after buying out BAE Systems' 25% stake on 30 January 2003). Astrium is based in Toulouse, France, and the CEO is Antoine Bouvier. The number of employees, as of 2004, is 6092, spread among four countries: France (2445; 40%), UK (2136; 35%), Germany (1279; 21%), and Spain (232; 4%).
  • 100% shareholder in EADS SPACE Transportation, responsible for the Ariane launchers and orbital systems such as Columbus. The CEO is Alain Charmeau.
  • 100% shareholder in EADS SPACE Services, formed mostly from Paradigm Secure Communications Ltd, a defence satellite operator for the UK MoD (operating the Skynet 5 system)
  • 28% shareholder in space transport operator Arianespace (largest commercial shareholder)
  • CEO is François Auque.
• Defence and Security Systems
  • Defence Electronics, the sensors and avionics house of EADS
  • Military Aircraft, including products such as the Mako/HEAT, and stakes in the following companies:
    • Dassault Aviation (45.76%), manufacturer of fighters and other military aircraft
    • Eurofighter GmbH (46%), manufacturer of Eurofighter Typhoon.
    • eurocopter (100% ownership), manufacturer of light and medium civil and military helicopters. The CEO is Fabrice Brégier and the headquarters are in Marignane, France.
  • Missiles
    • MBDA (37.5%)
    • LFK
  • Defence and Communications Systems, electronics/software system house
  • Services

Shareholders

As of 31 December 2004, about one-third of EADS stock is publicly traded in six European stock markets and the rest is divided among three major business entities.[1][2]

• Publicly traded: 34.08% (Includes 3.55% held by EADS employees, .06% held by French government, and .78% held by EADS itself. Traded on Paris, Frankfurt, Madrid, Bilbao, Barcelona and Valencia stock exchanges.)
• DaimlerChrysler: 30.2%
• SOGEADE: 30.2% (50% French government body, SOGEPA and 50% Désirade)
• SEPI: 5.52% (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.

Management

EADS operates with two co-CEO's, one French and one German, currently Tom Enders and Noël Forgeard. Similarly the leadership of the board of directors is shared between two co-chairmen: Arnaud Lagardère and Manfred Bischoff. This system was established with the creation of EADS in 2000.

Foregard was previously CEO of the aircraft manufacturer Airbus SAS. In late 2004 he was nominated by Lagardère as the next French CEO of EADS. Forgeard had suggested that this system should be abolished in favour of a single CEO in a move that DaimlerChrysler saw as an attempt to engineer a French dominated management team.

Following protracted arguments, which caused embarrassment to EADS at the Paris Air Show, the appointment was confirmed by the EADS Board of Directors on June 25 2005. At the same meeting the Board, in consultation with partner BAE Systems, named Gustav Humbert as President and CEO of Airbus.

History

EADS was formed in July 2000, by the merger of Aérospatiale-Matra of France, Dornier and DaimlerChrysler Aerospace AG (DASA) of Germany, and Construcciones Aeronáuticas SA (CASA) of Spain, with the aim of becoming 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 Ministry of International Trade and Industry, 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 Columbus in 2007 through its subsidiary EADS SPACE Transportation.

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 exists an on-going arms race.
• Using bribes in order to further sales in South Africa.
• Engendering the threat of a trade war when specific bids are rejected (e.g. the case of the Republic of Korea's F-15K Strike Eagle competition).