2003

Airbus signs a supplier contract with the Russian Sokol Aircraft Production Plant, based in Nizhny Novgorod, for the production of aircraft components. This contract marks the continued implementation of the extensive cooperation programme between Airbus and the Russian aerospace industry, which was jointly launched by EADS and Rosaviakosmos in July 2001.

A successful captive flight test of two Taurus KEPD 350 missile systems on a Swedish JAS 39 Gripen aircraft takes place at SAAB Linköping. Taurus KEPD 350 is a high-precision standoff guided missile system that has been developed by TAURUS Systems GmbH, a subsidiary of the German EADS/LFK-Lenkflugkörpersysteme GmbH (2/3) and the Swedish company Saab Bofors Dynamics (1/3). The maximum range of the missile is more than 350 kilometres.

With a ceremonious rollout in Dresden, EADS presents the first A310 MRTT for the Luftwaffe. Through the world's first new generation strategic tanker aircraft, EADS will develop its position in the global military transport and tanker aircraft market.
A total of six Airbus A310 aircraft are to be converted at the EADS-owned Elbe Flugzeugwerke in Dresden and at Lufthansa Technik in Hamburg, four of which will be delivered to the Luftwaffe and two to the Canadian Air Force. The Luftwaffe contract will secure more than 100 jobs until 2005 at EADS Elbe Flugzeugwerke in Dresden.

Qatar Airways signs a contract with Airbus for two A380 and two A340-600 aircraft, thereby converting existing options into firm orders. Deliveries of the A340-600 are to start in June 2006 and of the A380 in early 2009. At the end of 2003, 129 firm orders have been received for the A380 from eleven customers.

Inmarsat, EADS Space and the Thales Group have submitted a joint offer in order to receive the concession for operation of the European satellite navigation system Galileo. The three consortium members are the respective European market leaders in the fields of mobile satellite communications, satellite-based products and services, and aerospace. The formation of this consortium underlines the joint aim to advance and further develop the opportunities which are associated with the Galileo programme.

EADS is expanding its presence in Russia and will set up a subsidiary under Russian law. Its task will be to support existing business and to develop new possibilities for cooperation. The company will commence operations in January 2004 and is to be established in addition to the existing EADS Office.
Among other activities, EADS will prepare the market launch of the amphibious aircraft Be-200 together with its Russian partner Irkut and Rolls Royce Deutschland. Airbus has already jointly opened the ECAR engineering office with the Russian Kaskol Group. EADS is also working together with Russian companies in the helicopter, military aircraft and space fields.

Aircraft Services Lemwerder GmbH (ASL) is to receive a new majority shareholder. ASL's current majority shareholder Georgsmarienhütte Holding GmbH (GMH Holding) and EADS have agreed that EADS is to acquire a 51 percent share and take over the industrial management of ASL from 1 January 2004. This agreement is subject to approval by the German cartel and monopolies authorities.
The concept for the future is to include the following basic points: the structural assembly work on Eurofighter fuselage section 3, assembly of the forward part of the Eurofighter engine air intake and maintenance and spares work for Tornado are to be moved to Lemwerder. The civil maintenance activities will be closed down. In all, approx. 400 jobs are to be secured, 210 of which at the Lemwerder site.

EADS receives a major contract for MBDA, thereby continuing the growth of its defence activities. The Aster contract – with a volume of € 3 billion – has been signed by the European Organisation for Joint Armament Co-operation OCCAR and Eurosam, an MBDA-led joint venture with Thales. The contract provides for series production of a modern ground- and sea-based air defence system with anti-missile capability for British, French and Italian armed forces. This newly developed solution is to meet the existing demand within the missile defence sector. MBDA's share in the contract is worth € 2.3 billion.

The British EADS subsidiary Paradigm Secure Communications Ltd. signs the Skynet 5 contract with the British Ministry of Defence. The volume of this Private Financing Initiative (PFI) contract is approximately € 3.6 billion. Paradigm will offer the British Ministry of Defence secure military satellite communications services over the next 15 years. For this, EADS Astrium Ltd. will be tasked with the development and manufacture of two satellites, including launch and ground services. This new contract underlines the strong presence of EADS in Great Britain, one of its four home markets, where it employs over 13,000 highly qualified members of staff.

After taking off from the Edwards Air Force Base (California) and crossing the US and the Atlantic, the US Air Force's "Global Hawk" (RQ-4A) lands at the Nordholz Naval Air Base (near Cuxhaven). For EADS and Northrop Grumman, the first landing of the "Global Hawk" unmanned aerial vehicle in Germany represents another milestone in their successful transatlantic cooperation. Before the aircraft returns to the US in mid-November, five technical flight tests are to be conducted from Nordholz with an ELINT (Electronic Intelligence) reconnaissance sensor on board.

As part of its corporate research organisation, EADS has opened a Russian Technology Office in Moscow. EADS and the Russian Academy of Sciences additionally announced that they have signed an agreement outlining opportunities for cooperation on Research and Technology.

The European company Galileo Industries moves its headquarters from Brussels to Munich and commences work at the Ottobrunn site and its branch office in the Italian capital Rome. Its first General Manager and future CEO is Günter Stamerjohanns (53), who was previously CEO of the Russian-German joint venture Eurockot Launch Services since 1995. Galileo Industries will create 150 new jobs in an initial phase, the majority of which will be in Ottobrunn.

EADS is awarded a contract by the telecommunications company Eutelsat for the construction of the next satellite in the Hot Bird series. Following the decision in favour of developing the European satellite navigation system Galileo, this latest contract marks another success for EADS's space activities. Despite the continuing difficult climate, EADS is able to develop its position in this sector.

The Spanish government decides that Spain is to play a significant industrial role in the Tiger programme. At the same time, it places an order for 24 of these state-of-the-art combat helicopters. In this way, it both strengths the role of Spain within European defence policy and lays the foundation for a Spanish helicopter industry.

The Greek Ministry of Defence places 20 firm orders and 14 options for the NH90 helicopter. The contractual negotiations were conducted by Eurocopter with the full support of EADS and on behalf of the programme company NH Industries. EADS has a 62.5 percent share in the programme through its 100 percent subsidiary Eurocopter.

The procurement contract for 18 Eurofighter Typhoon aircraft destined as an airspace surveillance system for the Austrian armed forces becomes effective following the countersigning of legislation accompanying the budget by the Austrian Federal President and its official publication in the Federal Gazette.

American Eurocopter's position in the US manufacturing and service sector is to be strengthened thanks to the new helicopter manufacturing plant for EADS in Columbus, Mississippi. EADS is investing US$ 11 million initially and will increase the workforce by more than one hundred. Helicopters for the EADS subsidiary Eurocopter are to be built at the new assembly plant.

The German Luftwaffe receives the first production Eurofighter at the EADS flight test centre in Manching. This aircraft will be used for training flights. The Luftwaffe is the first national customer to officially bring the aircraft into operational service following its international type acceptance by the German, British, Italian and Spanish Ministries of Defence on 30 June this year in Manching.

Ludwig Bölkow passes away at the age of 91. Until 1977, he headed the aerospace company Messerschmitt-Bölkow-Blohm GmbH (MBB), one of the EADS predecessors. Bölkow was one of the pioneers of international cooperation within the aerospace and defence technology industry.

A £350 million aerospace plant built for aircraft manufacturer Airbus is officially opened by the British prime minister Tony Blair. The 83,500 square metre (over 900,000 square feet) facility, reckoned to be the largest factory built in the UK in recent years, has been constructed alongside the existing Airbus factory in Broughton, North Wales. To be known as the "West Factory", it has been built to house wing assembly for the 555-seat double-decker widebody A380 as well as other aircraft manufacturing activities.

The international type acceptance is officially granted for the Eurofighter combat aircraft in the presence of the defence minister of the Federal Republic of Germany and representatives from the British, Italian and Spanish defence ministries at the Manching plant (Germany) of EADS Military Aircraft. The agreements that have now been signed by the respective governments and NETMA, the management agency set up by them, on the one side and the Eurofighter consortium (EADS in Germany and Spain, Alenia in Italy and BAE Systems in the UK) on the other create the preconditions for the official start of Eurofighter deliveries to the air forces of the partner nations.

Korean Air signs a Memorandum of Understanding with Airbus to acquire up to eight Airbus A380-800 passenger aircraft (five firm orders and three options). Following Korean Air’s selection, Airbus now has 129 firm orders and commitments from eleven customers for the A380 programme.

Emirates orders 41 additional Airbus aircraft, comprising two A340-500s, 18 A340-600s and 21 A380s, in the largest single order ever placed by the airline. In addition, Emirates will lease two A340-600s and two A380s from ILFC.

EADS has received the largest military order in its history: it is worth € 20 billion and provides for 180 A400M military transport aircraft. The A400M contract was signed in Bonn by the programme company Airbus Military and the European procurement agency OCCAR. OCCAR represents Belgium, England, France, Germany, Luxembourg, Spain and Turkey.

The new EADS Defence and Security Systems Division will start its operational business as of 1 July 2003. The EADS Board of Directors has approved the concept for an organisational restructuring to enlarge the defence division of the world's second largest aerospace company. Thanks to the merger of its defence electronics, military aircraft and telecommunications activities, EADS will be able to strengthen its defence business. The new division consists of five business units: Missiles (MBDA + LFK), Defence Electronics, Military Aircraft, Defence and Communication Systems and Services. Its aim is to better meet the growing customer requirements for integrated defence and security technology. Tom Enders (44) has been appointed as CEO of the new Division, which will be headquartered in Munich. With approximately 24,000 employees in nine countries, the division will achieve revenues of more than € 5 bn in 2003.

The European Commission has formally approved the acquisition of a 25% share in Astrium (27.5% economic share) by EADS. This share was previously held by the British company BAE Systems plc. Astrium is Europe's leading space company. With the permission of the European Commission, the transaction had already been implemented on 7 May. EADS is therefore the sole shareholder in Astrium's space activities, meaning it can globally restructure its Space Division to enhance competitiveness under the current difficult market conditions. The extensive restructuring programme includes the realignment of sites following a centre of competence approach and the reorganisation of purchasing. The EADS Space Division Management plans to save costs of € 500 million a year by 2005.

The new A380 Major Component Assembly (MCA) hall has been officially opened in the presence of German Chancellor Gerhard Schröder at the Airbus site in Hamburg. The new hall is 228 m long, 120 m wide and 23 m high. It will house the structural assembly and the equipping of the forward fuselage sections and the complete rear fuselage sections for the Airbus A380, whose entry into service is scheduled for 2006. The A380 programme is creating more than 2,000 additional jobs at Airbus and its suppliers.

At the EADS Annual General Meeting in Amsterdam, Arnaud Lagardère is elected as a member of the Board of Directors and, alongside Manfred Bischoff, as Chairman of the Board. In addition, EADS CFO Hans Peter Ring is also elected as a new Member of the Board of Directors.

The world’s first thrust-vectored automated landing brought to an end the three-year research programme (April 2000 to April 2003) conducted jointly by the U.S. Navy, the Federal Office for Defence Technology and Procurement (BWB), EADS Military Aircraft and Boeing Aerospace. The final flight on April 29 ended with an automated ‘ESTOL (Extremely Short Take-Off and Landing) to the ground’ landing at a 24° angle of attack and 121 knots landing speed, which is a 31 per cent reduction from the X-31 normal landing speed of 175 knots. Another important advantage is the reduced landing distance. Whilst the test aircraft requires 2,400 m to stop after conventional landings, after the ESTOL touch-down the X-31 needed just 520 m to come to a halt.

The first series production Tiger combat helicopter in the French HAP version successfully completes its first flight at Eurocopter in Marignane. These aircraft are destined for the French Army.

Via its German-Chinese subsidiary, "EurasSpace-Gesellschaft für Raumfahrttechnik mbH" (Munich), the European space company Astrium will deliver the world's largest antenna testing facility to China. The facility, worth approximately € 12 million, is to start operation by the end of 2005. The antenna testing facility simulates the 36,000-kilometre distance of geostationary satellites from Earth in a 30-metre-long measuring chamber.

The co-founder and current Chairman of EADS, Jean-Luc Lagardère, dies on Friday, 14 March 2003. He was 75 years old. He was a great entrepreneur and visionary of the European aerospace and defence industry. His career began 50 years ago with Avions Marcel Dassault.

Despite the difficult market situation, EADS met or exceeded all its financial targets in the previous financial year. EADS achieved solid results in both its commercial and defence businesses and maintained its strong operating cash flow and net cash position. Despite the difficult market situation for commercial aircraft, incoming orders – at € 31.0 billion – were above revenues, which amounted to € 29.9 billion. EADS achieved an EBIT (Earning Before Interest and Tax, pre goodwill amortisation and exceptional items) of € 1.426 billion in 2002 (2001: € 1.694 billion), surpassing its target by a slight margin. Before Research and Development (R&D) costs, EADS slightly improved its EBIT margin from 11.5 % to 11.8 %, despite lower Airbus deliveries. R&D costs increased, as anticipated, to € 2.1 billion (2001: € 1.8 billion), particularly due to the A380 programme.

Christian Pechmann (45) succeeds Hans Peter Ring as Head of Controlling at EADS. Pechmann, previously Head of Planning and Control within Airbus, had also worked as Head of Controlling at Dasa Airbus from 1995 to 2000. His predecessor, Ring, had already been named EADS Chief Financial Officer in October 2002.

MBDA and SNPE have formed a 50-50 joint venture named Roxel. With annual sales of €150 million and 800 employees, this is the largest manufacturer of propulsion systems for tactical weapons in Europe and the third largest in the world.

The transportation into orbit of Intelsat 907 marks the end of a 15-year success story: 116 Ariane 4 heavy lifters have transported more than 400 tonnes of satellite payload from Kourou into space. In doing so, they notched up 113 successful missions, whereas there were only three failures – a practically unbeatable record.

Following the German stock exchange's decision, EADS – which has been on the French CAC-40 since its formation – will now also be listed on the new MDAX share index. It is expected that EADS will be listed from 24 March 2003 with the highest percentage share of all the companies quoted on the new MDAX.

Astrium has been selected by Telesat Canada to build the Anik F1R satellite. Scheduled to enter into service in mid-2005, Anik F1R will provide fixed satellite communication services in the C- and Ku-bands over a large zone of North America from the 107.3° west geostationary orbit.

EADS acquires the 25 percent share which BAE Systems has in Astrium, Europe's leading space company. The agreement, signed on 30 January 2003, will be implemented as soon as the cartel and monopolies authorities give their approval. EADS also takes sole control of Paradigm, the former joint venture of BAE Systems and EADS in the military satellite communications sector.

Malaysia Airlines will become a new Airbus A380 operator. The airline intends to purchase six aircraft. Thanks to the selection of the A380 by Malaysia Airlines, Airbus now has 103 orders and commitments from ten customers for the A380 programme.

easyJet, Europe's largest low-cost airline, concludes its first ever purchase order contract with Airbus for 120 A319 aircraft. In addition, an option for a further 120 aircraft of the same model has also been confirmed. In this way, Airbus has succeeded in breaking into the low-cost airline market, which up to this point had been the sole domain of Boeing.

Jussi Itävuori, Head of Human Resources at EADS, becomes a member of the EADS Executive Committee with effect from 1 January 2003. Itävuori has borne responsibility for Human Resources at EADS since September 2001.

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