EADS

From Freepedia

**European Aeronautic Defence and Space Company EADS N.V.**
Image:EADS Logo.png
Type	Public (Euronext: EAD, FWB EAD)
Founded	2000
Location	Toulouse, France Ottobrunn, Germany incorporated in the Netherlands
Key people	Tom Enders, co-CEO Noël Forgeard , co-CEO
Industry	Aerospace
Products	Aircraft Defense
Revenue	€ 31.761 billion (2004)
Employees	110,000
Website	www.eads.com

The European Aeronautic Defence and Space Company EADS N.V. (EADS) (Euronext: EAD, FWB: EAD)is a large European industrial corporation of the aerospace business, formed by the merger on July 10, 2000 of Aérospatiale-Matra of France, Dornier GmbH and DaimlerChrysler Aerospace AG (DASA) of Germany, and Construcciones Aeronáuticas SA (CASA) of Spain.

As of 2004, EADS employs more than 110,000 people at 70 production sites worldwide. Legally incorporated in Amsterdam, the Netherlands, the corporation's headquarters are located in Paris, France, and in Ottobrunn, south of Munich, Germany.

1 Management
2 History and activities
3 EADS divisions
4 Shareholders
5 Criticism
6 See also
7 External links

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.

Forgeard was previously CEO of the aircraft manufacturer Airbus. 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 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 Columbus in 2007 through its subsidiary EADS SPACE Transportation.

EADS divisions

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Airbus Division

Airbus S.A.S. is 80% owned by EADS, with BAE Systems owning the remaining 20% (October 2005). Airbus headquarters are located in Toulouse, France.

Eurocopter Division

Eurocopter is a manufacturer of light and medium civil and military helicopters. The CEO is Fabrice Brégier and the headquarters are in Marignane, France.

Military Transport Aircraft Division

EADS produces military transport aircraft, mainly through Airbus' majority ownership of Airbus Military. It is the developer and manufacturer-to-be of the Airbus A400M – competitor to Lockheed Martin's C-130 Hercules. It manufactures the A310 MRTT and A330 MRTT conversions.

Space Division

the Space division consists of three sub-divisions:

EADS Astrium (100% owned), a satellite company. BAE Systems' 25% stake in its predessessor, Astrium, was bought out on 30 January 2003. EADS Astrium is based in Toulouse, France, and the CEO is Antoine Bouvier. The number of employees, as of 2004, is 6,092, spread among four countries: France (2445; 40%), UK (2136; 35%), Germany (1279; 21%), and Spain (232; 4%).
EADS SPACE Transportation (100% owned), responsible for the Ariane launchers and orbital systems such as Columbus. The CEO is Alain Charmeau.
EADS SPACE Services (100% owned), 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 & Security Systems Division

The Defence & Security Systems division consists of five sub-divisions.

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.

EADS Services

Missiles
- MBDA (37.5%)
- LFK

Defence Electronics, the sensors and avionics house of EAD

Defence and Communications Systems, electronics/software system house

Other

EADS Socata is a manufacturer of small aircraft

Shareholders

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

Publicly traded: 34.08% (Includes 3.55% held by EADS employees, 0.06% held by French government, and 0.78% held as treasury stock. Traded on Euronext Paris, the Frankfurt Stock Exchange, and the Madrid, Bilbao, Barcelona and Valencia stock exchanges.)
DaimlerChrysler: 30.17%
SOGEADE: 30.17% (50% French government, 50% Lagardère)
SEPI: 5.51% (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, Lagardère wants to withdraw from defence aerospace, and the French government is pursuing privatisation where appropriate.

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).