Contrary to recent speculation in the financial press, EADS has no intention of reviving the merger talks with BAE Systems that were aborted last October. “It’s not on our radar; we’re both moving on,” said Tom Enders, CEO of EADS. “All the stars were aligned last summer, or so we thought. But at least one proved to be missing,” he continued, in a reference to the German government’s opposition to the merger.
The Regional Aircraft Division of BAE Systems has won a contract with Eastern Airways of the UK for its rate-per-flying-hour aircraft spares support service. The three-year support deal covers 16 Prestwick-built Jetstream 41 turboprop airliners. BAE Systems has provided support for Eastern Airways’ Jetstream 41 operation for the past 11 years.
General Dynamics and Italy’s Alenia Aermacchi signed a letter of intent to jointly offer a pilot training system built around Alenia Aermacchi’s M-346 advanced jet trainer for the U.S. Air Force’s T-X jet trainer replacement program. The partnership is the second industrial team to announce its pursuit of the T-X program after the team of BAE Systems and Northrop Grumman, which is offering the Hawk AJT (advanced jet trainer).
Oman confirmed a long-expected order for 12 Eurofighter Typhoons, and also decided to buy eight BAE Systems Hawk advanced jet trainers (AJTs). The contract is worth about $3.75 billion; deliveries will begin in 2017. The Typhoons will replace aging Jaguar strike aircraft in the Royal Air Force of Oman (RAFO), while the Hawk AJTs will supplement or replace the RAFO’s Hawk Mk103/203s. BAE Systems will provide in-service support.
The U.S. Navy awarded a contract to BAE Systems valued at $400 million over five years to maintain T-34, T-44 and T-6 training aircraft. BAE’s Aerospace Solutions business, based in Fort Walton Beach, Fla., will perform scheduled inspections, repairs, modifications and logistical support of more than 300 aircraft operated by the Chief of Naval Air Training.
BAE Systems announced a contract from Oman on Friday for 12 Eurofighter Typhoon fighters and eight Hawk advanced jet trainers (AJTs). Deliveries are expected to begin in 2017.
The French and German governments have agreed to reduce their shareholdings in EADS to 12 percent each, and drop their veto rights over key decisions. Spain will hold 4 percent. EADS said the pact will normalize and simplify its governance, while still allowing the three countries “to protect their legitimate strategic interests.”
Europe’s first unmanned combat air vehicle (UCAV) has flown. The Neuron technology demonstrator took off from the Dassault test base at Istres, France, at dawn on December 1. Dassault is the prime contractor, teamed with Alenia Aermacchi (Italy); EADS-CASA (Spain); Hellenic Aerospace Industries (Greece); Ruag (Switzerland); Saab (Sweden) and Thales (France).
The proposed 60-40 merger of EADS and BAE Systems was called off after management in both companies miscalculated the reaction of governments and shareholders. Paris and Berlin proved unwilling to give up their stakes in EADS, or reduce them to a degree that was acceptable to the two merging companies, to London, and (perhaps) to Washington.
Senior officials from EADS and BAE Systems are hastening to secure agreement for their proposed 60-40 merger from key governments, after the premature leaking of the deal. They must specify full details by October 10, to satisfy UK stock market rules.