History of EADS: 2006

Highlights 2006

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Qantas Airways has signed a firm order for eight more of the world’s largest and most advanced passenger aircraft, the Airbus A380, taking the total number of A380s ordered by Australia’s national carrier to 20 aircraft.

Singapore Airlines has committed to expansion of its Airbus A380 fleet with the signing of a contract for an additional nine orders and six new options, details of which were announced by the airline on 21st July 2006. The delivery positions were protected by options accompanying the airline’s original firm order for ten aircraft in 2001. The first A380 is scheduled for delivery to Singapore Airlines in October 2007. The airline also signed an agreement to lease nineteen new A330-300s.

The first three latest-generation NH90 Tactical Transport Helicopters (TTH) were handed over to the German Army at Eurocopter’s Donauwörth facility in the presence of a large group of guests from the German Federal Ministry of Defence, the Federal Office of Defence Technology and Procurement, NAHEMA (NATO Helicopter Management Agency) as well as the German Army on December 13th, 2006. The German Army is the first customer to take delivery of the NH90. The aircraft with the serial numbers TGEA02 and TGEA03 will be used for flight training at the German Army Air Corps Weapons School in Bückeburg, while serial number TGEA05 will be used to train maintenance staff.

The world’s largest commercial airliner, the 555-seat Airbus A380, has received joint European Aviation Safety Agency (EASA) and Federal Aviation Administration (FAA) Type Certification on 12th December 2006. The certified aircraft is powered by Rolls-Royce Trent 900 engines.

The EASA A380 Type Certificate was signed by EASA’s Executive Director, Patrick Goudou; and the FAA A380 Type Certificate by John Hickey, FAA’s Head of Certification The documents were handed over to Airbus’ Executive Vice President Engineering, Alain Garcia. The Ceremony, held at the Airbus facilities in Toulouse, France, was attended by the Honorable Marion Blakey, FAA Administrator, and by senior officials from Civil Aviation Authorities from several countries worldwide.

EADS North America officially delivered the U.S. Army’s first UH-72A Light Utility Helicopter, marking the beginning of this major defense program with a requirement for up to 322 rotary-wing aircraft and a potential total life-cycle value of over $2 billion.

The initial UH-72A was received by the Army during a delivery and naming ceremony in Columbus, Mississippi, where the twin-engine helicopter will be produced.

EADS North America is to deliver a second UH-72A before year-end, responding early to the Army’s rapid phase-in schedule for the helicopter, which will be used on logistical and support missions within the United States. Forty more light utility helicopters currently are in the production cycle for delivery to the Army during 2007 and 2008.

The EADS Board of Directors has given the go ahead for Airbus to launch the industrial programme for the new A350 XWB airliner family. In doing so, the Board has assumed the full implementation of the Power8 competitiveness programme.

The A350 XWB - together with the A330/A340 aircraft family – will meet a market that requires some 5,700 new aircraft being delivered in the next two decades with more than US$ 1,000 bn value.

EADS’ (stock exchange symbol: EAD) results for the first nine months of 2006 reflect high delivery levels throughout the Group as well as anticipation of the challenges ahead. From January to September 2006, EADS increased its revenues across all Divisions by 17 percent to € 27.5 billion (9m 2005: € 23.4 billion). The Group achieved an EBIT* (pre-goodwill and exceptionals) of € 1.4 billion (9m 2005: € 2.1 billion), a reduction attributable to the A380 delays and the US Dollar devaluation against the Euro.

“EADS financials remain sound based on good performance of the Airbus delivery programmes and the helicopter, defence and space businesses. Nevertheless, the struggle to reverse the A380 problems imposes a severe burden on our financial performance,” said EADS CEOs Tom Enders and Louis Gallois. “This together with the Dollar devaluation requires drastic measures to remain competitive. Therefore the ‘Power8’ programme in Airbus and structural streamlining of the Group has top priority.”

The rescheduling of the A380 delivery plan in early October overshadowed the progress in the A380 type certification process as well as Airbus' record nine-month deliveries of 320 aircraft. Louis Gallois assumed the additional responsibility of the Airbus CEO to drive forward the further development of Airbus, conduct the new programmes requested by the market, and carry out the “Power8” cost and cash saving programme together with a more efficient integration at Airbus and EADS levels. Eurocopter achieved significant successes and sold 471 helicopters – already exceeding all previous full-year order intakes. The Space Division more than doubled its order intake while the Defence & Security Systems Division obtained contracts to build digital radio networks in Germany and Estonia.

All Divisions contributed to the strong increase in revenues. Airbus and Eurocopter benefited from a significant increase in deliveries of commercial aircraft and series helicopters. The Defence & Security Systems Division's growth was supported by the expansion of the digital radio network business.

The EADS Board of Directors has appointed Fabrice Brégier (45) as Airbus Chief Operating Officer (COO) with immediate effect. Fabrice Brégier remains a member of the EADS Executive Committee.

To further improve transparency within the Group, the EADS Board has appointed EADS CFO Hans Peter Ring (55) as Airbus CFO effective 1 January 2007. Hans Peter Ring will remain CFO of EADS. Andreas Sperl (59), CFO of Airbus, will move to another operational function within the EADS Group.

The EADS Board has decided that the EADS CEOs Tom Enders and Louis Gallois will regularly report on all major projects, programmes, and matters of importance – including Airbus – to the two EADS Chairmen Manfred Bischoff and Arnaud Lagardère to better prepare Board discussions and decisions. This does not change the joint responsibility of the two CEOs for all EADS businesses, or the powers of the Board.

Polish Secretary of State of Defence, Marek Zajakala, Chief of Staff Polish Air Force, Lt. Gen. Stanislaw Targosz and Polish Air Force Lt. Gen. Magensky, on the Polish side, and Antonio R. Barberán, Vice President Sales at EADS Military Transport Aircraft Division, have signed today, in the presence of Spanish Ambassador in Warsaw, Rafael Mendivil Peydro, a new contract to provide Polish Air Force with two additional C-295 military transport aircraft. In August 2001, Poland purchased eight (8) C-295, from which last delivery took place in July 2005.

Antonio R. Barberán said during the signing ceremony: “We would like to thank and congratulate Polish Air Force for its professionality, and to specially mention the 6.000 flight hours in different missions under the most demanding and hard conditions performed with the C-295 in areas that extend from the Middle East to the Far East”

Poland is the first export customer for C-295 which repeats with new acquisitions (recurrent customer).

China Aviation Supplies Import and Export Group Corporation (CASGC) signed a General Terms Agreement (GTA) for the purchase of 150 A320 Family aircraft and a Letter of Intent (LOI) for 20 A350XWB aircraft with Airbus in Beijing.

CASGC President Li Hai and Airbus President and Chief Executive Officer, and EADS co-CEO, Louis Gallois signed the agreements at the Great Hall of People in the presence of the Chinese President Hu Jintao and the visiting French President Jacques Chirac.

The General Terms Agreement for the firm purchase of 150 A320 Family aircraft together with the Letter of Intent for 20 A350XWBs represents the largest single transaction ever performed by Airbus in China.

Airbus has signed today the Framework Agreement with a Chinese Consortium comprising Tianjin Free Trade Zone (TJFTZ), China Aviation Industry Corporation I (AVIC I) and China Aviation Industry Corporation II (AVIC II) in Beijing on the establishment of an A320 Family Final Assembly Line in China. This follows the study initiated in late 2005 and is part of Airbus’ commitment to increasing its industrial cooperation with China.

Chinese Consortium Representative Feng Zhijiang and Airbus President and Chief Executive Officer, and EADS co-CEO Louis Gallois, signed the Agreement at the Great Hall of People in the presence of the Chinese President Hu Jintao and the visiting French President Jacques Chirac.

Under the Framework Agreement, Airbus will set up an A320 Family Final Assembly Line in Tianjin, and the corresponding joint venture is to be created between a Chinese Consortium led by TJFTZ and Airbus. The agreement, which covers all major issues related with the establishment of the Final assembly Line in China, is subject to formal approval by the Chinese government. Aircraft assembly in China is planned to begin in early 2009, with the aim of ramping up production to reach four aircraft per month by 2011.

EADS has announced the resignation of Christian Streiff as Airbus Chief Executive Officer and member of the EADS Executive Committee with immediate effect on Monday.
The EADS Board of Directors has appointed EADS Co-CEO Louis Gallois as Airbus CEO with immediate effect. Louis Gallois will remain Co-CEO of EADS.

The non-Airbus divisions will report to EADS Co-CEO Tom Enders in the future.
The Board of Directors once more underlined its unanimous support for the Power8 programme as decided on 3 October, 2006 as well as for the immediate implementation of the A380 recovery plan. It will take its decision on the A350 XWB in the next weeks.

The new management structure will allow, on the one hand, a leaner, more efficient corporate governance and, on the other hand, additional cost savings within the EADS group.

Following a detailed joint EADS / Airbus review of the A380 programme, Airbus has revised the A380 delivery schedule for the period 2007 to 2010. The first Airbus A380 series aircraft will be delivered in the second half of 2007. In 2008 Airbus plans to deliver 13 aircraft. In 2009, 25 A380s shall leave the final assembly line followed by 45 A380s in 2010, with that year’s total including the first freighters. Compared to the June 13 plan deliveries will be delayed for another year on average, EADS announced after a meeting of its Board of Directors on Tuesday and specified the resulting financial impact.

However, the A380 review also confirmed that type certification for the A380 is likely to be achieved by the end of the year. While flight testing is proceeding as planned, the A380 is meeting or even exceeding its performance targets, and proves to be a highly reliable and comfortable aircraft.

The Estonian Government and EADS signed a contract in September 2006 on building the Estonian Public Safety Digital Mobile Trunked Radio Network (EDTN). Users of the network will include the police, border guards, rescue services, and other organisations responsible for public safety. The EDTN network is planned to be ready for service during the first half of year 2007.

Bringing together all the Estonian public safety agencies on one shared EADS TETRA radio network can make the work of the emergency services more efficient. Communications between different organisations will become significantly easier, for example. And as the network will provide nationwide coverage, all agencies can receive the same information and messages securely and simultaneously.

The Airbus A380 took off from Blagnac International Airport in Toulouse at 09:58 am local time this morning with 474 passengers on board for the first in a series of four long flights or “Early Long Flights”. During the flights, the passengers, comprised of Airbus employees and cabin experts, will put the cabin through its paces.

The Early Long Flights are an important step towards the A380’s entry into service. Though not part of the technical certification programme, these flights allow Airbus to assess the cabin environment and systems in flight ahead of final certification ensuring that airlines will benefit from a fully mature aircraft on delivery.

EADS, a global leader in aerospace, defence and related services, is committed to supporting India in the development of both its aerospace infrastructure and its industrial capabilities in aviation, space and defence technology. This was announced by EADS CEO Tom Enders during meetings in New Delhi with Indian top officials. Enders is a member of a German delegation headed by Minister for Economic Affairs, Michael Glos.

EADS has secured the contract to construct the digital radio system for the German security authorities and organizations (BOS). The contract has been awarded in writing by the Procurement Office in the Federal Ministry of the Interior. Within the scope of this contract, EADS will act as prime contractor and, together with Siemens, construct a nationwide TETRA digital radio network by 31 December 2010. In all, the contract has a potential volume of up to € 1 billion for EADS.

The government of New-Zealand announced today a firm order for 9 NH90 to provide 8 operational helicopters to the Royal New Zealand Air Force (RNZAF). The NH90 has been selected by New-Zealand in April 2005 as the replacement helicopter for the RNZAF ageing Iroquois. A signing ceremony took place in Wellington with Hon Phil Goff, Minister of Defence of New-Zealand in presence of Philippe Harache, Eurocopter’s Senior Executive Vice President.
This additional order for the NH90 comes a few weeks after Australia officially announced an additional contract of 34 MRH90. The NH90 program, led by Eurocopter, now totals 400 firm orders confirming its status of biggest helicopter program ever launched by Europe. The NH90 has been selected by 12 countries including France, Germany, Italy, the Netherlands, Portugal, Finland, Norway, Sweden, Greece, Oman, Australia and New-Zealand. Due to its multi-role capability, the NH90 is able to fulfil a large variety of missions and has been selected for Army, Air Force, Navy and SAR services.

Singapore Airlines selects a large fleet of Airbus airliners to meet its future wide-body fleet requirements. The Letter of Intent (LOI) signed at Farnborough Air Show covers an order of nine firm A380-800s, and six new options. The LOI also includes 20 orders and 20 options for the all new A350 XWB-900.

Airbus confirms its commitment to its customers and future business growth and presents a whole new family of aircraft, the A350 XWB, for Extra Wide Body, Extra Comfort, Extra Efficiency and going the Extra mile for customers. The new family will consist of four passenger versions and one freighter, completing the Airbus long-range product for the 21st century with the most modern and technologically advanced products. Increased range, increased speed, enhanced passenger comfort and the best economics will make the A350 XWB a reference for the future.

The EADS Board of Directors appoints Louis Gallois (62) as CEO of EADS. He will join Tom Enders (47) in leading the Group and the EADS Executive Committee. Christian Streiff (51) is nominated as CEO of Airbus and appointed as member of the EADS Executive Committee, reporting to EADS CEO Tom Enders, who is nominated as Chairman of the Airbus Shareholder Committee. The management changes follow the resignation of EADS CEO Noël Forgeard and Airbus CEO Gustav Humbert.

The selection of EADS to provide the US Army's next-generation Light Utility Helicopter (LUH) marks the Group's break-through on the US defence market. For the very first time, the Group's subsidiary EADS North America will act as a prime contractor for the US military. The LUH requirement is for up to 322 aircraft, with a total value of approximately US$ 3 billion.

EADS' Australian defence business is further strengthened by an order for 34 MRH-90 transport helicopters, the Australian version of the NH90. The contract was signed today by EADS' subsidiary Eurocopter and the Australian government. Less than two years ago, Australia already purchased 12 MRH-90 medium-lift helicopters.

Airbus, EADS EFW and the leading Russian aircraft manufacturers MIG and Irkut sign a preliminary co-operation agreement for a civil freighter aircraft conversion business. This co-operation will focus on the conversion of A320 Family aircraft into freighter aircraft. The conversion will be done in Russia and is planned to begin in 2011.

With the first flight of the UAV technology demonstrator "Barracuda" for unmanned high performance military systems, EADS opens the door to one of the most promising future global markets in defence. The EADS Military Air Systems Business Unit has for the first time flight tested an innovative aircraft for the development of future operational Unmanned Aerial Vehicles (UAVs).

International representatives are joined by guest of honour the German Chancellor Angela Merkel, to bid farewell to the 13-ton space laboratory Columbus. Engineers at EADS SPACE Transportation have spent approximately 10 years developing and building the multi-functional Columbus. It is scheduled for launch in autumn 2007 on board a US Space Shuttle.

The EADS Board of Directors appoints Jean J. Botti (49) as Chief Technical Officer (CTO) of EADS. Botti will be the focal point, based in Munich, for research, technology development, development of design and manufacturing tools and innovation across the Group. As of 1 May 2006, Botti is a Member of the EADS Executive Committee.

EADS supports the exhibition “Egypt’s Sunken Treasures”. Therefore, the Group provides an Airbus 300-600 ST Beluga cargo aircraft to transport the exhibits – some of them weigh several tons – to Berlin and Paris where the statues and columns from underwater archaeological excavations will be presented to a broad public for the first time.

Venus Express, the space probe developed and constructed by EADS Astrium, was inserted into orbit around Venus after a journey of nearly five months in order to investigate the Venusian atmosphere. Scientists expect crucial insights into the long-term climatic evolution processes on Earth.

DaimlerChrysler and Lagardère SCA, two of EADS' core shareholders, are going to reduce their respective stakes in EADS by 7.5 percent each in coordinated steps. Thus, EADS' free float will increase substantially.

The European Aviation and Safety Agency (EASA) and the American Federal Aviation Administration, FAA gave their “seal of approval” to the successful A380 evacuation trial. They herewith validated 853 as the maximum passenger seating capacity. During the evacuation trial three days before, all 853 passengers and 20 crew members left the aircraft within the prescribed 90 seconds.

The first phase of the Air Refuelling Boom System (ARBS) flight test programme has successfully been completed after 3 years of development, where EADS CASA has completed the design and manufacture of the refuelling boom. Preliminary results of the tests have shown the aircraft’s handling qualities are not influenced by the boom installation.

EADS is to establish a training-, research- and development centre in Qatar Science & Technology Park (QSTP) in mid-2007. The EADS Competence Centre of Qatar (EADS QCC) will deliver training and certification programs for non-destructive testing (NDT) technologies, and internationally-accredited training courses in aircraft maintenance.

EADS North America receives an order for ten Light Sign Cutter EC120s from the U.S. Department of Homeland Security Customs and Border Protection. This acquisition is part of a Department of Homeland Security contract that could involve as many as 55 helicopters.

During Asian Aerospace 2006 exhibition EADS inaugurates its Singapore Research & Technology Centre (SRTC). The SRTC is an extension of the EADS Research organisation and will manage and broker projects for the EADS business units and the Corporate Research Centre of EADS in close cooperation with Singaporean scientific institutions. It will also run its own projects with internal resources in its own facilities.

EADS has signed a contract with the company Pro-M to deliver the infrastructure for the Hungarian nationwide TETRA radio network. Pro-M was established for this purpose by T-Mobile Hungary and Magyar Telekom and will build and operate the nationwide radio communications network by order of the Hungarian Government.. As one of the world's leading producers and an integrator of digital trunked radio-based systems, EADS enables a reliable, central exchange of information between security forces for internal security, making it possible to reach an immediate decision based on the situation.

Airframes already begun as part of EADS North America’s commitment to the Army’s LUH program
EADS North America will produce the UH-145 rotary wing aircraft, the company’s offering for the U.S. Army’s Light Utility Helicopter (LUH), at the American Eurocopter state-of-the-art Columbus, Mississippi facility.

The announcement was made by Mississippi Governor Haley Barbour, EADS CEO Thomas Enders and Ralph D. Crosby, Jr., Chairman and CEO of EADS North America at a joint press conference held in the Mississippi State Capitol. Earlier in the day, EADS and Airbus executives, along with federal and state government officials, participated in a groundbreaking ceremony in Mobile, Alabama to begin construction on a new Airbus engineering center.

On the occasion of the ATR annual press conference, which took place today in Paris, Filippo Bagnato, Chief Executive Officer, announced a turnover for 2005 of $542 million, an increase of 15% compared to 2004 ($469 million revenues, based on IAS standard). Henceforth, ATR will present its turnover in the international accounting standard (IAS)..

ATR has logged firm orders for 90 new aircraft plus 26 options.

EADS SPACE is to play a central role in the test phase for the new European satellite navigation system Galileo, following the contract signature in Berlin today between Galileo Industries, as the prime contractor, and the European Space Agency ESA. The contract is worth €1 billion with almost one fifth to be handled by the space units of EADS.

In 2005, Eurocopter successfully secured its position as the world's No. 1 helicopter manufacturer with a total of 401 orders for new military and civil helicopters. Compared to 2004, the company’s consolidated turnover increased by 15 % to a total of 3.21 billion euros, proving Eurocopter’s successful strategy of expanding its activities to emerging markets of the future.

2005 was a record year for Airbus in all terms, be it for deliveries, order intake and profitability. In terms of orders Airbus continued to outsell its competitor for the fifth consecutive year, while continuing to lead in terms of deliveries for the third year in a row. Airbus also achieved a profitability margin above its target of 10 per cent.

In 2005, Airbus delivered 378 airliners, bringing the Airbus turnover to approx. € 22.3 billion. With this, Airbus total deliveries now stand at 4,130.

EADS has received three major contracts delivering its TETRA secure communications terminals to the Belgian fire brigades, to the Irish police, and to the Dutch police.

In Belgium, a special commission of the fire fighters selected TETRA THR880 and THR880i terminals by EADS after several tests.
After a public tender issued by the Irish police, An Garda Síochána, EADS Secure Networks was rewarded the contract for the delivery of additional hand portable TETRA radios through its local distributor Radius Communication.
In the Netherlands, Regio Politie Amsterdam-Amstelland (RPAA) has chosen THR880i radios from EADS for their use in the C2000 network.

European Aeronautic Defence and Space Company EADS N.V.
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EADS Deutschland GmbH · 81663 Munich · Germany
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