EADS to Rename Itself Airbus

In reporting half-year results, the "European Aeronautic Defence and Space Co." (EADS) has confirmed plans to reorganize itself into three divisions and change its name to the globally recognized Airbus brand in order to become more competitive.

 

In recent months, EADS conducted a strategy review, which paved the way for two important Board decisions. Firstly, the Group plans to integrate Airbus Military, Astrium and Cassidian into one "Defence and Space Division." Secondly, the Group will enhance integration and cohesion by renaming the Group and its Divisions using the globally recognized Airbus brand. 

 

The Airbus Group will consist of three divisions: 

Pooling the space and defense entities Airbus Military, Astrium and Cassidian is the Group’s response to the changing market environment with flat or even shrinking defense and space budgets in the Western hemisphere. According to a company press release, this structural change will provide optimized market access, cost and market synergies and improved competitiveness overall. It will also provide better visibility on the European leader in space and defense. 

 

Airbus Helicopters, with its civil and military products, will remain unchanged. The rotorcraft technology is very particular and it’s necessary to maintain the strong synergies between civil and military products. 

 

Implementation is planned to start step-by-step on Jan. 1, 2014 and will be completed in the second half of 2014. It is designed to support the Group’s Flightpath 2015 for improved shareholder returns.

 

Several regulatory milestones, works council consultations, and other approval procedures have to be accomplished before the changes can come into full effect. 

 

Airbus Defence & Space will be a division with around 45,000 employees and will be headquartered in Munich, Germany. It will consist of four business segments – Military Aircraft, Space Systems, Communication, Intelligence & Security Systems, and Equipment. The CEO of Airbus Defence & Space will be Bernhard Gerwert, aged 60.

 

EADS CEO Tom Enders comments, “What we are unveiling today is an evolution, not a revolution. It's the next logical step in the development of our company. We affirm the predominance of commercial aeronautics in our Group and we restructure and focus our defense and space activities to take costs out, increase profitability, and improve our market position. The renaming simply gathers the entire company under the best brand we have, one that stands for internationalization, innovation, and integration – and also for some two thirds of our revenues."

 

As of June 30, 2013, EADS had 143,358 employees (year-end 2012: 140,405).