Airbus Group

From Wikipedia, the free encyclopedia
  (Redirected from Cassidian)
Jump to: navigation, search
Airbus Group
Type Naamloze vennootschap
(public limited company)
Traded as EuronextEAD
BMADEAD
FWBEAD
CAC 40 Component
Industry Aerospace, Defence
Predecessors European Aeronautic Defence and Space Company (EADS)
Founded 10 July 2000; 14 years ago (2000-07-10) as EADS
Headquarters Leiden, Netherlands (headquarters)[1]
Blagnac, France (main office)[2]
Area served Worldwide
Key people Denis Ranque (Chairman)
Dr Tom Enders (CEO)
Revenue Increase 59.3 billion – 2013
Backlog: Increase €634.8 billion
Operating income Increase €2.131 billion – 2012
Profit Increase €1.299 billion – 2012
Total assets Increase €92.102 billion – 2012
Total equity Increase €10.434 billion – 2012
Owners 09-30-2013:[3]
SOGEADE12%
GZBV10.72%
SEPI4.13%
Other shareholders – 73.15%
Employees 143,358 – June 2013
Subsidiaries Airbus
Airbus Defence and Space
Airbus Helicopters
Website airbus-group.com
Footnotes / references
2012 Financial Statements[4]
Backlog per 31 June 2013[5]

The Airbus Group is a European multinational aerospace and defence corporation registered in the Netherlands and headquartered in Toulouse, France. The group consists of the three business divisions Airbus, Airbus Defence and Space, and Airbus Helicopters.[6]

The company was originally formed as the European Aeronautic Defence and Space Company (EADS) on 10 July 2000 by the merger of Aérospatiale-Matra, DaimlerChrysler Aerospace AG (DASA), and Construcciones Aeronáuticas SA (CASA). In January 2014, EADS was reorganised as Airbus Group combining the divisions for development and marketing of civil and military aircraft, as well as communications systems, missiles, space rockets, helicopters, satellites, and related systems.

History[edit]

Main article: EADS § History

On 31 July 2013, it was reported that EADS was to be renamed in 2014 to Airbus Group, adopting the name of its commercial aircraft-building subsidiary, which had become its most important revenue generator.[7] In January 2014, EADS was reorganised as Airbus Group, with three divisions.[6]

Organisation[edit]

Airbus[edit]

The civil airliner manufacturer Airbus is the biggest division in terms of sales and employees.[citation needed] The product portfolio encompasses short range aircraft such as the A320 family and the world's largest passenger airliner, the A380.

Airbus Defence and Space[edit]

The division Airbus Defence and Space was formed in January 2014 as part of the group restructuring from the former EADS divisions Airbus Military, Astrium, and Cassidian.[8]

Airbus Helicopters[edit]

Airbus Helicopters, formerly known as Eurocopter, is a worldwide leader in helicopter manufacturing and support.[citation needed]

Other units and holdings[edit]

In September 2014 Airbus considered divesting Dassault and several other units to focus on aerospace.[10]

Corporate governance[edit]

Airbus Group management as of January 2014:[11]

Chief Executive Officer: Thomas Enders

Executive Committee:

Member Title
François Auque Executive Vice President - Space Systems, Airbus Defence and Space
Thierry Baril Chief Human Resources Officer Airbus Group & Airbus
Jean Botti Chief Technical Officer Airbus Group
Fabrice Brégier Chief Executive Officer Airbus
Günter Butschek Chief Operating Officer Airbus
Guillaume Faury Chief Executive Officer Airbus Helicopters
Bernhard Gerwert Chief Executive Officer Airbus Defence and Space
Marwan Lahoud Chief Strategy and Marketing Officer Airbus Group
John Leahy Chief Operating Officer - Customer - Airbus
Sean O'Keefe Chief Executive Officer Airbus Group North America
Domingo Ureña-Raso Executive Vice President Military Aircraft, Airbus Defence and Space
Harald Wilhelm Chief Financial Officer Airbus Group & Airbus

The Executive Committee is appointed by the board of directors, itself appointed by Daimler AG and SOGEADE. Both appoint four directors plus one independent director. As of July 2003 SEPI no longer nominates a board member, but a Spanish director is retained as the 11th member.[12] The board also appoints the company's chairmen, one from the Daimler nominated directors and from the SOGEADE nominated directors. In late 2004 Noël Forgeard (then Airbus CEO) 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 25 June 2005. At the same meeting the Board, in consultation with partner BAE Systems, named Gustav Humbert as President and CEO of Airbus.[citation needed]

Financial information[edit]

As of 30 June 2013 72.37 % of Airbus Group stock is publicly traded on six European stock exchanges, while the remaining 26.77 % is owned by a "Contractual Partnership".[13] The latter is owned by SOGEPA (11.96 %), GZBV (10.69 %) and SEPI (4.12 %). SOGEPA is owned by the French State and Lagardère, while SEPI is a Spanish state holding company. France also owns 0.06 % of publicly traded stock.[14]

In October 2005 the British Ministry of Defence warned European politicians to stop, as it sees it, interfering in the corporate governance of EADS. The former UK Defence Procurement Minister Lord Drayson hinted that the UK government, a major customer for EADS, may withhold future contracts. "As a key customer, we see it as important for EADS to move in a direction that is free from political interference."[15]

On 4 April 2006, DaimlerChrysler announced its intention to reduce its shareholding from 30 % to 22.5 %. The company placed a value of the stake at "approximately €2.0 billion."[16] Lagardère will reduce its holding by an identical amount. However, Caisse des Dépôts et Consignations, a unit of the French government, acquired 2.25 % of EADS. As a result the German and French shareholdings are now in imbalance, which was a concern.[17]

On 30 August 2006, shortly after the stock price decline caused by the A380 delivery delays, more than 5 % of EADS stock has been reportedly purchased by the Russian state-owned Vneshtorgbank.[18] Now its share is nearly 6 %. In December 2007, Vneshtorgbank sold EADS shares to another state-controlled bank Vneshekonombank. EADS sharers are to be delivered by Vneshekonombank to the charter capital of JSC "United Aircraft Corporation" in 2008.[citation needed]

On 3 October 2006, shortly after EADS admitted further delays in the Airbus 380 programme would cost the company 4.8 billion euros in lost earnings in 2010, EADS shares, traded on the Paris arm of Euronext, were suspended after they surpassed the 10 % loss limit. Trading resumed later in the day with the one day loss holding at 7 %.

In 2007, Dubai Holding acquired 3.12 % of EADS stock, making the Dubai buy-out fund one of the largest institutional shareholders.[19]

In 2008, EADS had arms sales equivalent of $17.9 billion, which constituted 28 % of total revenue.[20]

Criticisms[edit]

Cluster bomb allegation[edit]

In 2005 the Norwegian Government Pension Fund recommended the exclusion of several companies producing cluster bombs or components. EADS and its sister company EADS Finance BV were among them, arguing that EADS manufactures "key components for cluster bombs". The criticism was centered around TDA, a joint venture between EADS and Thales S.A. TDA produced the mortar ammunition PR Cargo, which can be considered cluster ammunition, however this definition has since been successfully battled by EADS. EADS and its subsidiaries are now regarded as fulfilling all the conditions of the Ottawa Treaty. According to the new point of view, no product of EADS or its subsidiaries falls into the category of antipersonnel mines as defined by the Ottawa Treaty ("landmines under the Ottawa Treaty"). In April 2006, the fund declared that the basis for excluding EADS from investments related to production of cluster munitions is no longer valid, however its shareholding of MBDA means the fund still excludes EADS due to its indirect involvement in nuclear weapons production.[21]

Bribery[edit]

Saudi Arabia[edit]

In August 2012 the UK Serious Fraud Office opened a criminal investigation into an EADS subsidiary, GPT Special Project Management Ltd, in connection with bribery allegations made by the subsidiary's former programme director, Ian Foxley. Foxley alleged that luxury cars were bought for senior Saudis, and that millions of pounds sterling was paid to mysterious Cayman Islands companies, and that this may have been done to secure a £2 billion contract to renew the Saudi Arabian National Guard's military telecommunications network.[22] Foxley's allegations were backed up by two other GPT employees.[23]

South Africa[edit]

In 2003 Tony Yengeni, former chief whip of South Africa's African National Congress, was convicted of fraud relating to an arms deal with South Africa, in which EADS were major players,[24] worth around $5 billion. BBC reported that EADS had admitted that it had "rendered assistance" to some 30 senior officials to obtain luxury vehicles, including defence force chief General Siphiwe Nyanda.[25] In March 2003 the South African State completely withdrew the charges of bribery against the former head of EADS South Africa.[26] In September 2004 the Munich prosecutor's office issued a formal order on dismissal regarding the bribery charges against him due to his innocence in relation to the said car sales (file no. 572 Js 39830/01).

Insider trading investigation[edit]

On 2 June 2006 co-CEO Noël Forgeard and Airbus CEO Gustav Humbert resigned following the controversy caused by the June 2006 announcement that deliveries of the A380 would be delayed by a further six months. Forgeard was one of a number of executives who exercised stock options in November 2005 and March 2006. He and 21 other executives are under investigation as to whether they knew about the delays in the Airbus A380 project which caused a 26 % fall in EADS shares when publicised.[27]

The French government's actions are also under investigation; The state-owned bank Caisse des Dépots et Consignations (CDC) bought part of Lagardère's 7.5 % stake in EADS in April 2006, allowing that latter to partially escape the June 2006 losses.[27]

In June 2008 law firm Coughlin Stoia Geller Rudman and Robbins announced that a class action suit has been commenced on behalf of an institutional investor in the U.S. District Court for the Southern District of New York on behalf of U.S. citizens who purchased the publicly traded stock of EADS.

See also[edit]

Notes[edit]

  1. ^ CONTACT Airbus Group
  2. ^ CONTACT Airbus Group
  3. ^ "EADS Shareholding Structure". EADS.com. 
  4. ^ "EADS Financial Statements 2012". EADS.com. 
  5. ^ "EADS Reports Solid Half-Year (H1) Results, Reaffirms 2013 Guidance". EADS.com. 
  6. ^ a b "What we do". Airbus Group. 2014. Retrieved 10 July 2014. 
  7. ^ BBC News - EADS to be renamed Airbus Group. Bbc.co.uk (2013-07-31). Retrieved on 2013-08-16.
  8. ^ EADS changes name to Airbus, subscription required.
  9. ^ "Premium AEROTEC commences aircraft component production in Romania". EADS. Retrieved 26 March 2011. [dead link]
  10. ^ Jens Flottau, Tony Osborne and Amy Svitak. "Airbus Group To Focus On Military Aircraft, Space And Missiles" Aviation Week & Space Technology, 22 September 2014. Accessed: 24 September 2014. Archived on 24 September 2014
  11. ^ "Executive Committee Members". Airbus Group. 1 May 2013. Retrieved 23 January 2014. 
  12. ^ "EADS N.V. – Board of Directors – Role and Composition". EADS. Retrieved 12 July 2011. [dead link]
  13. ^ "EADS Shareholding Structure". Eads.eu. Retrieved 12 July 2011. [dead link]
  14. ^ EADS Global Website - Shareholding Structure. Eads.com (2013-06-30). Retrieved on 2013-08-16.
  15. ^ Robertson, David (5 October 2006). "MoD tells European leaders to stop meddling in EADS". The Times (UK). Retrieved 6 August 2014. 
  16. ^ DaimlerChrysler And Lagardere Cut Stake In EADS[dead link]
  17. ^ "Airbus plays catch-up with A350 jet." Phillips, D. International Herald Tribune. 11 April 2006.
  18. ^ "EADS shares up on Vneshtorgbank reports[dead link]." Yahoo News. 30 August 2006.
  19. ^ John, Isaac. "Dubai Int'l Capital buys 3.12pc stake in EADS", Khaleej Times, 6 July 2007.
  20. ^ The SIPRI Top 100 arms-producing companies, 2008 Stockholm International Peace Research Institute, 12 April 2010. Retrieved: 4 May 2010.
  21. ^ April-2006.html?id=419592#note3 "The exclusion of EADS from the investment universe of the Government Pension Fund – Global has been reviewed". Regjeringen.no. Retrieved 12 July 2011. 
  22. ^ "SFO launches criminal probe into deal with Saudi national guard". Exaronews.com. 10 August 2012. Retrieved 20 June 2013. 
  23. ^ "Third insider blows whistle on ‘corrupt’ Saudi defence deal". Exaronews.com. 9 July 2012. Retrieved 20 June 2013. 
  24. ^ Jailed Yengeni shows no remorse[dead link]
  25. ^ "Top ANC official resigns". BBC News. 4 October 2001. Retrieved 12 July 2011. 
  26. ^ "Court Diary". Armsdeal-vpo.co.za. Retrieved 12 July 2011. 
  27. ^ a b "Inside story; Share scandals in France". The Economist (The Economist Newspapers). 13 October 2007. 

External links[edit]