EADS The European Aeronautic Defence and Space Company N . V . ( EADS ) is a global pan - European aerospace and defence corporation registered in the Netherlands and a defence and military contractor worldwide . The group includes Airbus which manufactures commercial aircraft , and Airbus Military which manufactures tanker , transport and mission aircraft ; Eurocopter , the world ' s largest helicopter supplier ; Astrium , providing systems for aerial , land , naval and civilian security applications including Ariane , Galileo and Cassidian . Through Cassidian , EADS is a partner in the Eurofighter consortium as well in the missile systems provider MBDA . In 2011 , the EADS generated revenues of €49 . 13 billion and employed 133 , 115 personnel . EADS was formed on 10 July 2000 by the merger of Aérospatiale - Matra , DaimlerChrysler Aerospace AG ( DASA ) , and Construcciones Aeronáuticas SA ( CASA ) . Overall , the company develops and markets civil and military aircraft , as well as communications systems , missiles , space rockets , satellites , and related systems . In 2013 , it was announced that EADS is planning to change its name to Airbus Group . History . Background ( 1997 – 1999 ) . In June 1997 , British Aerospace Defence Managing Director John Weston commented " Europe . . . is supporting three times the number of contractors on less than half the budget of the U . S . " European governments wished to see the merger of their defence manufacturers into a single entity , a European Aerospace and Defence Company . As early as 1995 the German aerospace and defence company DaimlerChrysler Aerospace ( DASA ) and its British counterpart British Aerospace were said to be eager to create a transnational aerospace and defence company . The two companies envisaged including the French company Aérospatiale , the other major European aerospace company , but only after its privatisation . The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace , DASA , Aérospatiale and Construcciones Aeronáuticas SA into an integrated company ; in this aim BAe and DASA were united against the various objections of Aérospatiale . As well as Airbus , British Aerospace and DASA were partners in the Panavia Tornado and Eurofighter Typhoon aircraft projects . Merger discussions began between British Aerospace and DASA in July 1998 , just as French participation became more likely with the announcement that Aérospatiale was to merge with Matra and emerge with a diluted French government shareholding . A merger was agreed between British Aerospace Chairman Richard Evans and DASA CEO Jürgen Schrempp in December 1998 . However when the British General Electric Company put its defence electronics business Marconi Electronic Systems ( MES ) up for sale on 22 December 1998 , British Aerospace abandoned the DASA merger in favour of purchasing its British rival . The merger of British Aerospace and MES to form BAE Systems was announced on 19 January 1999 and completed on 30 November . Evans stated in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA . Formation and expansion ( 1999 – 2008 ) . DASA and the Spanish aircraft company Construcciones Aeronáuticas SA agreed to merge with the signature of a memorandum of understanding on 11 June 1999 . On 14 October 1999 DASA agreed to merge with Aérospatiale - Matra to create the European Aeronautic Defence and Space Company . 10 July 2000 was " Day One " for the new company which became the world ' s second - largest aerospace company after Boeing and the second - largest European arms manufacturer after BAE Systems . In January 2001 Airbus Industrie was transformed from an inherently inefficient consortium structure to a formal joint stock company , with legal and tax procedures being finalised on 11 July . Both EADS and BAE transferred ownership of their Airbus factories to the new Airbus SAS in return for 80 % and 20 % shares in the new company respectively . In April 2001 EADS agreed to merge its missile businesses with those of BAE Systems and Alenia Marconi Systems ( BAE / Finmeccanica ) to form MBDA . EADS took a 37 . 5 % share of the new company which was formally established in December 2001 and which thus became the world ' s second - largest missile manufacturer . On 16 June 2003 EADS acquired BAE ' s 25 % share in Astrium , the satellite and space system manufacturer , to become the sole owner . EADS paid £84 million , however due to the lossmaking status of the company BAE invested an equal amount for " restructuring " . It was subsequently renamed EADS Astrium . In November 2003 , EADS announced that it was considering working with Japanese companies , and the Japanese METI , to develop a hypersonic airliner intended to be a larger , faster , and quieter , replacement for the Concorde , which was retired in October the same year . Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20 % share of Airbus , the possibility was consistently denied by the company . However on 6 April 2006 BBC News reported that it was indeed to sell its stake , then " conservatively valued " at £2 . 4 billion . Due to the slow pace of informal negotiations , BAE exercised its put option which saw investment bank Rothschild appointed to give an independent valuation . Six days after this process began , Airbus announced delays to the A380 with significant effects on the value of Airbus shares . On 2 June 2006 Rothschild valued BAE ' s share at £1 . 87 billion , well below BAE ' s , analysts ' and even EADS ' expectations . The BAE board recommended that the company proceed with the sale and on 4 October 2006 shareholders voted in favour ; the sale was completed on 13 October making EADS the sole shareholder of Airbus . In March 2007 EADS Defence and Security Systems division was awarded an eight year , £200m contract to provide the IT infrastructure for the FiReControl project in the UK . Recent activities ( 2008 – present ) . On 29 February 2008 , the United States Air Force awarded a $ 35 billion contract for aerial refueling tankers ( the KC - 45 ) to Northrop Grumman , with EADS as a major subcontractor . The contract , one of the largest created by the Department of Defence , is initially valued at $ 35 billion but has the potential to grow to $ 100 billion . Under the contract , Northrop Grumman and EADS would build a fleet of 179 planes , based on the existing Airbus 330 , to provide in - air refueling to military aircraft , from fighter jets to cargo planes . While final assembly of the craft would take place at an Airbus plant near Mobile , Alabama , parts would come from suppliers across the globe . However , the award was protested by Boeing , the other bidder on the project , which was upheld by the GAO . In response to the new contest , on 8 March 2010 , Northrop Grumman announced it was abandoning its bid for the new contract , with its CEO stating that the revised bid requirement favored Boeing . On 20 April 2010 , EADS announced it was re - entering the competition and intended to enter a bid with the KC - 45 . EADS reported a 763 million euros loss for 2009 as a result of a 1 . 8 billion euros charge on the troubled Airbus A400M project and a 240 million euros charge related to the A380 . On 12 September 2012 it was reported that BAE and EADS were in discussions regarding a possible merger . In the event of the merger , BAE shareholders would own 40 % and EADS 60 % of the new enlarged organisation . A key French EADS shareholder Lagardere asked EADS to rethink the proposed merger plan as the conditions were unsatisfactory . The bosses of BAE Systems and EADS issued a joint statement seeking political support for their proposed 35 billion euro ( US $ 45 billion ) merger from the British , French and German governments ; and reiterated that the combination is borne out of opportunity , not necessity and the new company would be greater than the sum of its parts . It was reported on 10 October 2012 , that the merger between BAE Systems and EADS had been called off . 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 . Corporate governance . EADS ' Management Structure ( as of 1 April 2013 ) : EADS CEO : Tom Enders Executive Committee members : Fabrice Brégier Günter Butschek John Leahy Domingo Ureña - Raso Guillaume Faury ( appointed on 30 April 2013 ) François Auque Bernhard Gerwert Sean O ’ Keefe Group functions : Harald Wilhelm ( Chief Financial Officer ) Thierry Baril ( Chief Human Resources Officer ) Marwan Lahoud ( Chief Strategy & Marketing Officer ) Jean Botti ( Chief Technical Officer ) 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 . 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 . As of September 2007 the Chairmen are Rüdiger Grube and Arnaud Lagardère . The other board members are Louis Gallois , Thomas Enders , Hans Peter Ring , Juan Manuel Eguiagaray , Michel Pébereau , Bodo Uebber , François David and Michael Rogowski . In mid - 2012 , the general assembly of EADS appointed former Airbus CFO Harald Wilhelm as the new CFO of EADS , taking over for Hans Peter Ring , who will retire from the company . Arnaud Lagardère is going to be appointed as the new chairman and will succeed Bodo Uebber . Moreover , Airbus CEO Thomas Enders will possibly take over as EADS CEO and will be succeeded by current Airbus COO Fabrice Brégier . Financial information . As of 30 June 2013 72 . 37 % of EADS stock is publicly traded on six European stock exchanges , while the remaining 26 . 77 % is owned by a " Contractual Partnership " . 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 . 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 . " On 4 April 2006 , DaimlerChrysler announced its intention to reduce its shareholding from 30 % to 22 . 5 % . The company places a value of the stake at " approximately €2 . 0 billion . " 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 . At issue as a result is the fact that the German and French shareholdings are now in imbalance . 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 . 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 . 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 . In 2008 , EADS had arms sales equivalent of $ 17 . 9 billion , which constituted 28 % of total revenue . Criticisms . Cluster bomb allegation . In 2005 the Norwegian Government Pension Fund recommended the exclusion of several companies producing cluster bomb s 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 mine s as defined by the Ottawa Treaty ( " landmine s under the Ottawa Treaty " ) . In April 2006 , the fund declared that the basis for excluding EADS from investments related to production of cluster munition s is no longer valid , however its shareholding of MBDA means the fund still excludes EADS due to its indirect involvement in nuclear weapon s production . Bribery . Saudi Arabia . 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 car s 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 . Foxley ' s allegations were backed up by two other GPT employees . South Africa . 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 , 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 . In March 2003 the South African State completely withdrew the charges of bribery against the former head of EADS South Africa . 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 . 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 option s 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 . 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 . 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 .