EADS merges A400M programme to form Airbus Military

16 December 2008

Paris: European aerospace conglomerate EADS announced Tuesday plans to merge its military transport division with Airbus, its civil aircraft manufacturing division. The move is intended to bring its struggling A400M programme under a unified command.

The restructuring will see EADS's Military Transport Aircraft Division (MTAD) integrated with Airbus and become its military wing under the name of Airbus Military.

EADS said it would also bring its satellite and defence divisions closer together without merging them. The EADS Astrium and EADS Defence & Security divisions handle top strategic projects for France and Germany.

EADS is the world's second-largest aerospace group after Boeing.

The 20 billion euro ($27.33 billion) A400M military transport programme is running an estimated 18 to 24 months late. This has led to increasing frustration among European governments.

More importantly, the delays have drawn away engineering resources from Airbus even as it is set to ratchet up its ambitious A350 jetliner programme, which is billed as a competitor to Boeing's 787 Dreamliner project.