Delhi: EADS will now register the largest defence
order in its history worth €20 billion for the A400M
military transport aircraft. The A400M contract was signed
on Tuesday in Bonn, Germany, by Airbus Military and the
European procurement agency OCCAR representing France,
Germany, Spain, Turkey, Belgium, Luxemburg and the UK.
The contract will come into effect on 31 May 2003.
revenues are expected to be generated as soon as this
year and to ramp up very quickly, with a total amount
of about €2 billion already generated between 2003
and 2005. This will contribute to the EADS overall target
to grow defence revenues from €6 billion in 2002
to nearly €10 billion by 2005. With the A400M,
the company''s defence order book will double to around
€40 billion, placing EADS among the top three defence
companies in the world.
the EADS CEOs Philippe Camus and Rainer Hertrich "the
launch of the A400M programme is a major milestone in
EADS'' strategy to grow the defence business and further
balance civil and military activities."
will immediately start the A400M industrial programme.
For all A400M project teams, on-time delivery and full
technical compliance are now first priorities,"
say Camus and Hertrich. "We know that the armed
forces in Europe have an urgent need for the most modern
and capable military transport aircraft available, and
EADS is ready to meet their need."
A400M is a breakthrough for the military aircraft industry.
We are convinced that the A400M will set new standards
in military transport and forces interoperability,"
says Francisco Fernandez Sainz, president of Airbus
Military and head of the EADS military transport aircraft
division. "We are proud to harness our expertise
in Airbus commercial aircraft to create a high-quality,
efficient and technologically advanced military transport
aircraft. This will provide the best value for money
to all our customers."
addition to this initial domestic order, EADS is convinced
that the A400M has an outstanding export potential of
more than 200 aircraft in the next two decades. "The
A400M is well positioned to replace a major part of
the current world-wide fleet of tactical transport aircraft,"
Camus and Hertrich say. "There is simply no other
new generation aircraft with 21st century technologies
on the market."
CEOs stress that the A400M programme will create and
secure a total of 40,000 jobs at manufacturers and their
suppliers over a period of 20 years. "The financial
strength of EADS and our experience in the management
of large-scale, multinational projects have been important
prerequisites for the decision in favour of the A400M."
launch contract provides for a total of 180 A400M transport
aircraft for seven NATO nations with the Airbus partners
Germany (60), France (50), Spain (27) and the UK (25)
placing the largest orders. The other national partners''
and customers'' orders are Turkey (10), Belgium (seven)
and Luxemburg (one).
with Airbus, EADS has a 90-per cent share in the programme.
EADS leads the consortium of participating companies
with responsibilities for managing the overall programme
as well as for final assembly in Seville (Spain). The
EADS group work-share is equivalent to the percentage
of its shareholding in Airbus Military (20.56 per cent
held directly by EADS and 69.44 per cent held by Airbus).
and profit from A400M programme will be recorded at
the EADS military transport aircraft division. EADS
will consolidate 100 per cent of the A400M programme
reflecting its control and major work-share of 90 per
cent. The order intake value is thus €20 billion,
representing 100 per cent of the programme.
is a global aerospace and defence company and is the
world''s second largest in terms of revenues with €29.9
billion in 2002. EADS has a workforce of more than 100,000
and is a market leader in defence technology, commercial
aircraft, helicopters, space, military transport and
combat aircraft, as well as related services.
family of leading brands includes the commercial aircraft
manufacturer Airbus, the world''s largest helicopter
manufacturer Eurocopter, the space company Astrium and
MBDA, the world''s second largest missile company. EADS
is the biggest partner in the Eurofighter consortium
and heads the A400M military transport aircraft
programme. The company has over 70 sites in Germany,
France, Great Britain and Spain. It is active in many
regions worldwide, including the US, Russia and Asia.