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Airbus

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This article is about the European aircraft manufacturer. For the band, seeAirbus (band).For the former London bus operator, seeLondon Buses Airbus routes.
"EADS" redirects here. For other uses, seeEads.

Airbus SE
Formerly
  • Parent company:
  • European Aeronautic Defence and Space Company NV (EADS) (2000–2014)
  • Airbus Group NV (2014–2015)
  • Airbus Group SE (2015–2017)
  • Subsidiary:
  • Airbus Industrie GIE (1970–2001)
  • Airbus SAS (2001–current)
Company typePublic
ISINNL0000235190
IndustryAerospace,defence
PredecessorAérospatiale,CASA,DASA,Matra
Founded18 December 1970;53 years ago(1970-12-18)
Headquarters
Area served
Worldwide
Key people
Products
RevenueIncrease€65.45 billion(2023)
Decrease€4.60 billion(2023)
Decrease€3.79 billion(2023)
Total assetsIncrease€118.87 billion(2023)
Total equityIncrease€17.73 billion(2023)
Owner
Number of employees
147,893 (2023)
Divisions
Subsidiaries
Websiteairbus
Footnotes / references
Financials as of 31 December 2022.
References:[5][6][7]

Airbus SE(/ˈɛərbʌs/;French:[ɛʁbys]ⓘ;German:[ˈɛːɐ̯bʊs]ⓘ;Spanish:[ˈejɾβus]) is a European[8]multinationalaerospacecorporation. The company’s primary business is the design and manufacturing ofcommercial aircraftbut it also has separatedefence and spaceandhelicopterdivisions. Since 2019, Airbus has been the world's largest manufacturer of airliners as well as the leading helicopter manufacturer.[9][10]

The company was incorporated as theEuropean Aeronautic Defence and Space Company(EADS) in the year 2000 through the merger of the FrenchAérospatiale-Matra,the GermanDASAand SpanishCASA.The new entity subsequently acquired full ownership of its subsidiary,Airbus Industrie GIE,ajoint ventureof European aerospace companies originally incorporated in 1970 to develop and producea wide-body aircraftto compete with American-built airliners. EADS rebranded itself asAirbus SEin 2015. Reflecting its multinational origin, the company operates major offices and assembly plants inFrance,Germany,Spain,and theUnited Kingdom,along with more recent additions inCanada,China,and theUnited States.[11]

Airbus' headquarters are legally registered inLeiden,Netherlands, but daily management is conducted from the company's main office located inBlagnac,France.[12]TheSEin its corporate name stands forSocietas Europaea.[13]The company is led by CEOGuillaume Fauryand is a component of theEURO STOXX 50stock market index.[14]Since its inception in 2000, the company’s shares have been listed on theParis Stock Exchange,theFrankfurt Stock Exchangeand the four regional Spanish stock exchanges (including theBolsa de Madrid).[15]

In 2024, following similar ventures launched inSingaporeandthe Netherlands,Airbus announced its plans to establish a Tech Hub inJapan,to foster partnerships for the next generation aircraft development.[16]

History[edit]

Main article:History of Airbus

The current company is the product of consolidation in the European aerospace industry, tracing back to the formation of theAirbus IndustrieGIEconsortium in 1970. In 2000, the European Aeronautic Defence and Space Company (EADS)NVwas established. In addition to other subsidiaries pertaining to security and space activities, EADS owned 100% of the pre-existingEurocopter SA,established in 1992, as well as 80% of Airbus Industrie GIE. In 2001, Airbus Industrie GIE was reorganised as AirbusSAS,a simplifiedjoint-stock company.In 2006, EADS acquiredBAE Systems' remaining 20% of Airbus.[17]EADS NV was renamed Airbus Group NV and SE in 2014 and 2015, respectively.[18][19][20]Due to the dominance of the Airbus SAS division within Airbus Group SE, the executive committees of the parent and subsidiary companies were aligned in January 2017, but the companies were kept as separate legal entities. The holding company was given its present name in April 2017.[21]

Airbus
(est. 2000, renamed 2017)
Aérospatiale-Matra
(est. 1999)

Aérospatiale
(est. 1970)

Matra
(est. 1937)

DASA
(est. 1989)

Daimler-Benz(aerospace unit)
(est. 1926)

Dornier Flugzeugwerke
(est. 1922)

Messerschmitt-Bölkow-Blohm(MBB)
(est. 1968)

CASA(Construcciones Aeronáuticas SA)
(est. 1923)

The logos of Airbus Industrie GIE and Airbus SAS displayed a stylised turbine symbol, redolent of ajet engine,and a font similar toHelvetica Black.The logo colours were reflected in the standard Airbusaircraft liveryin each period. The EADS logo between 2000 and 2010 combined the logos of the merged companies,DaimlerChrysler Aerospace AG(a four-ray star) and Aérospatiale-Matra (a curved arrow), after which these elements were removed and a new font with 3D shading was chosen. This font was retained in the logos of Airbus Group NV (2014–2015) and Airbus Group SE (2015–2017), then Airbus SE:

Products[edit]

Civilian[edit]

Airbus A300,the company's first airliner and the world's firstwide-body,twinjetaircraft

The Airbus product line started with theA300in 1972, the world's firstwide-body,twinjetaircraft. The aircraft greatly benefited from the 1976 introduction of theETOPS90 rule, which allowed twinjet aircraft to operate up to 90 minutes (increased from 60 minutes) away from the nearest airport. Under the new rule, the A300 was able to operate over theNorth Atlantic,theBay of Bengal,and theIndian Oceanmore efficiently than thetrijetsandfour-engined jet aircraftoffered by competitors. A shorter, re-winged, re-engineered variant of the A300, known as theA310,followed in 1982. The aircraft would remain in production until 2007.

Airbus A320,the company's best-selling airliner

Building on its success with the A300, Airbus worked to develop a narrow-body aircraft along with additional wide-body aircraft based on the A300.

The narrow-body efforts led to the launch of theA320in 1987, which was and continues to be a major commercial success. The A320 was the first commercial jet to use a digitalfly-by-wirecontrol system. All Airbus aircraft developed since then have cockpit systems similar to the A320, making it easier to train crew. The success led Airbus to introduce a lengthened version, the A321 in 1993, along with the shorter A319 in 1995 and the even shorter A318 in 2002. In 2016, Airbus re-engineered the narrow-body family, in a programme called theA320neo(new engine option).

The wide-body programme led to the introduction of the four-engineA340in 1991 and the twinjetA330in 1992. At that time, Airbus wanted to offerfour-engined jet aircraftto allow for longertransatlanticandtranspacificflights. However, during the aircraft's development, new rules extended twinjet operations to 120 minutes in 1986, and 180 minutes in 1989. Although the new rules hurt sales of the A340, they greatly benefited theA330.Production of the A340 ended in 2011, while the A330 would be re-engineered as theA330neo(new engine option) in 2018.

The world's largest passenger airliner was introduced by Airbus in 2005; theA380was a four-engine aircraft with two full-length passenger seating decks. Intended to challenge the dominance of theBoeing 747in thelong-haulmarket, the A380 was ultimately a money-losing venture for Airbus due to large development costs and limited sales, and production ended in January 2022.

TheA350,a wide-body, twinjet aircraft was introduced in 2013. The A350 was the first Airbus aircraft made largely fromcarbon-fiber-reinforced polymers.It is longer and wider than the fuselage used on the A300, A310, A330, and A340.

A second narrow-body jet was added to the product list in 2018 when Airbus gained control of the Bombardier CSeries programme, and rebranded it as the A220. The jet offers five-abreast seating compared to the six-abreast seating on the A320.

Product list and details (date information from Airbus)
Aircraft Description Seats 1st flight Production end Orders Deliveries Unfilled In operation
A220 2 engines, narrow-body 108–130 16 September 2013 914 322 592 322
A300 2 engines, wide-body 228–254 28 October 1972 27 March 2007 561 561 — 219
A310 2 engines, wide-body 187 3 April 1982 27 March 1998 255 255 — 52
A320 2 engines, narrow-body 107–185 22 February 1987 18,460 11,328 7,132 10,630
A330 2 engines, wide-body 246–300 2 November 1992 1,774 1,598 176 1,479
A340 4 engines, wide-body 239–377 25 October 1991 10 November 2011 377 377 — 202
A350 2 engines, wide-body 270–350 14 June 2013 1,277 592 652 586
A380 4 engines, wide-body, double deck 555 27 April 2005 1 January 2022 251 251 — 234

Data as of 29 February 2024.[22]

The company is also a 50% owner of theATRjoint venture which builds theATR 42andATR 72regional aircraft

Corporate jets[edit]

VIP aircraftAirbus A330ofQatar Amiri Flighttaxiing atZagreb Airport

Airbus Corporate Jetsmarkets and modifies new aircraft for private and corporate customers. It has a model range that parallels the commercial aircraft offered by the company. Following the entry of the 737-basedBoeing Business Jet,Airbus joined the business jet market with the A319 Corporate Jet in 1997. Although the term Airbus Corporate Jet was initially used only for the A319CJ, it is now often used for all models, including VIP widebodies. As of December 2008, 121 corporate and private jets are operating, and 164 aircraft have been ordered.[23]

The company is also a 10% owner ofDassault Aviation,which builds theFalcon familyof smaller business jets.

Military[edit]

The firstA400Min Seville, 26 June 2008

Airbus Defence and Spacemarkets and either builds or modifies new aircraft for military use. Airbus became increasingly interested in developing and selling to the military aviation market in the late 1990s. It embarked on two main fields of development:aerial refuellingwith theAirbus A310 MRTT(Multi-Role Tanker Transport) and later theAirbus A330 MRTT,andtactical airliftwith theAirbus A400M Atlas.The company has also continued to market and assemble some military aircraft previously offered by the companies that formed Airbus, notablyCASA.

The A310 and A330-based MRTT aircraft are conversions of civilian airliners. The aircraft are called multi-role tanker transports because, in addition to their aerial refuelling capability, the aircraft can also be configured for troop transport, medevac, and cargo transportation.

The A400M Atlas is a four-engine, turboprop-powered tactical transport aircraft. The A400M is sized between the American-madeC-130and theC-17transports, and while it can carry heavier loads than the C-130, its turboprop engines allow it to retain the ability to use rough landing strips. The A400M was developed for EuropeanNATOmembers, Belgium, France, Germany, Luxembourg, Spain, Turkey, and the UK, as an alternative to relying on foreign aircraft. During development, the A400M programme faced delays and cost overruns;[24][25]with customer nations stepping in offer additional subsidies.[26][27]The first aircraft was delivered to theFrench Air Forcein 2013, and by 2023, more than 100 aircraft had been built.

The Defence and Space division also market and assembles theAirbus C295,a smaller tactical transport aircraft, that was designed and initially manufactured by theSpanishaerospace companyCASA.

The company is also a 50% owner of theArianeGroupjoint venture which builds theAriane 5space launch vehicle, a 46% owner of theEurofighterjoint venture which builds theTyphoonfighter jet, a 42.5% owner of thePanavia Aircraftjoint venture which built theTornadofighter jet, a 37.5% owner of theMBDAjoint venture which builds missiles, and a 10% owner of Dassault Aviation which builds theRafalefighter jet, and previously, theMirage 2000fighter.

Helicopters[edit]

Airbus Helicoptersmarkets and builds new rotorcraft for civilian and military use. The division was founded formed in 1992 as the Eurocopter Group, through the merger of the helicopter divisions ofAérospatialeandDASA(two of the founding companies of Airbus). Airbus Helicopters is the foremost player in the turbine helicopter industry both in terms of revenues and deliveries.

The division's civilian products include the single engineH125andH130,the light twin engineH135andH145,the medium twin engineH155andH160,the super medium twin engineH175,and the heavy twin engineH215andH225.

Military products include theTigerattack helicopter, along with militarized versions of the H125, H135, H145, H160, H175, H215, and H225.

The company is also a 62.5% owner of theNHIndustriesjoint venture, which builds theNH90military utility helicopter.

Organisation[edit]

Divisions[edit]

Revenues by division, as of 2023:

Commercial aircraft (72%)
Defence and Space (17%)
Helicopters (11%)

Commercial Aircraft[edit]

Commercial aircraft generated 74% of total revenue for the Airbus group in 2018 and 72% in 2023.[28][29]The key trends for Airbus Commercial Aircraft (excluding Defence, Space and Helicopters) are as of the financial year ending 31 December 2023:[30]

2016 2017 2018 2019 2020 2021 2022 2023
Revenue (€b) 49.2 43.4 47.9 54.7 34.2 36.1 41.4 47.7
Operating income[a](€b) 1.5 2.2 4.2 1.7 −1.3 4.1 4.8 3.6
Value of order book (€b) 1,010 950 411[b] 424 324 345 390 490
Number of employees 73,852 74,542 80,924 80,985 78,487 73,560 79,134 90,032
Unfulfilled orders[c] 6,874 7,265 7,577 7,482 7,184 7,082 7,239 8,598
Net order intake 731 1,109 747 768 268 507 820 2,094
Aircraft deliveries 688 718 800 863 566 611 661 735

Defence and Space[edit]

The divisionAirbus Defence and Spacewas formed in January 2014 as part of the group restructuring from the former EADS divisionsAirbus Military,Astrium,and Cassidian (composed of Cassidian Electronics – develops and manufactures sensors, radars, avionics and electronic warfare systems for military and security applications, Cassidian Air Systems – develops manned and unmanned aerial systems (UAVs), mission avionics, electronic defence and warning systems and Cassidian Systems – provides global security systems such as command & control, lead system integration,TETRAandTETRAPOLcommunication systems for public safety, industry, transportation and defence. This line of business was the first one in the world to begin field tests with TETRA Enhanced Data Service (TEDS).[31][32]

  • EADS 3 Sigma– a Hellenic company focused on the design, development, production and services provision of airborne and surface target drone systems.

TheAirbus Militarydivision, which manufactured tanker, transport and mission aircraft;Airbus Helicopters,the world's largest helicopter supplier;Astrium,provided systems for aerial, land, naval and civilian security applications includingAriane,GalileoandCassidian.Through Cassidian, EADS was a partner in theEurofighterconsortium as well as in the missile systems providerMBDA.

Helicopters[edit]

Airbus Helicopters,formerly known as Eurocopter, is a helicopter manufacturing and support company.

Structural evolution of Airbus SE
Dec 1970 Jan 1992 July 2000 Sep 2000 Jan 2001 Dec 2006 Apr 2009 Sep 2010 Jan 2014 May 2015 Jan 2017 Apr 2017
European Aeronautic Defence and Space Company NV Airbus Group NV Airbus Group SE Airbus SE
Airbus Industrie GIE Airbus SAS
Airbus Military SAS Airbus Defence and Space SAS
EADS Defence and Security Cassidian SAS
Astrium SAS EADS Astrium SAS
Eurocopter SA Eurocopter SAS Airbus Helicopters SAS
AnAirbus A330neoand aQatar AirwaysAirbus A350-900atToulouse-Blagnac Airport
Airbus A321in newWizz Airlivery atBrestairport,Belarus

Subsidiaries[edit]

Joint ventures[edit]

Name Holding Description
Airbus Canada Limited Partnership
75%
 manufacturer of theAirbus A220family of airliners
ArianeGroup
50%
 manufacturer of theAriane 5andAriane 6space launch vehicles
ATR
50%
 manufacturer of theATR 42andATR 72regional aircraft
Dassault Aviation
10%
 manufacturer of theRafalefighter jet andFalconbusiness jets
Eurofighter
46%
 manufacturer of theTyphoonfighter jet
MBDA
37.5%
 manufacturer of missile systems
NHIndustries
62.5%
 manufacturer of theNH90military utility helicopter
Panavia Aircraft
42.5%
 manufacturer of theTornadofighter jet

Largest shareholders[edit]

The 10 largest shareholder of Airbus in early 2024 were:[40]

Senior leadership[edit]

The corporate management of Airbus is:[41]

Former chairmen
  1. Franz Josef Strauss(1970–1988)
  2. Edzard Reuter(1994–1998)
  3. Jürgen E. Schrempp(1998–2000)
  4. Manfred Bischoff(2000–2007)
  5. Arnaud Lagardère(2007–2013)
  6. Denis Ranque(2013–2019)
Former chief executives
  1. Henri Ziegler(1970–1975)
  2. Bernard Lathière (1975–1984)
  3. Jean Pierson(1985–1998)
  4. Noël Forgeard(1998–2005)
  5. Gustav Humbert(2005–2006)
  6. Christian Streiff (2006)
  7. Louis Gallois(2006–2012)
  8. Tom Enders(2012–2019)

International manufacturing presence[edit]

Airbus factory atToulouse-Blagnac Airportin France (43°36′44″N1°21′47″E/ 43.61222°N 1.36306°E/43.61222; 1.36306)
Airbus Hamburg-Finkenwerderfactory in Germany
Airbus factory inGetafe,Spain

Airbus has several final assembly lines for different models and markets. These are:

Airbus, however, has a number of other plants in different European locations, reflecting its foundation as a consortium.

For aircraft assembled in Europe, aircraft parts often move between the different factories and the assembly lines via the use of theBelugaandBelugaXL,a fleet modified aircraft capable of carrying entire sections of fuselage. For aircraft assembled in China and the United States, the parts needed to build an aircraft meet in a single European location where they are loaded onto ships for the final journey to the assembly line.[42][43]

Airbus opened an assembly plant for the A320 family of aircraft inTianjin,China in 2009.[44][45][46]Airbus started constructing a $350 million component manufacturing plant inHarbin,China in July 2009, which will employ 1,000 people.[47][48]Scheduled to be operated by the end of 2010, the 30,000 square metre plant will manufacture composite parts and assemble composite work-packages for the A350 XWB, A320 families and future Airbus programmes. Harbin Aircraft Industry Group Corporation, Hafei Aviation Industry Company Ltd, AviChina Industry & Technology Company and other Chinese partners hold an 80% stake in the plant while Airbus control the remaining 20%.[49][unreliable source?]In 2022, the Tianjin plant finished upgrading works to allow for production of A321.[50]In 2023, during a French state visit to China, Airbus announced that the Tianjin final assembly plant would be expanded with a second production line.[citation needed]

North America is an important region to Airbus in terms of both aircraft sales and suppliers. 2,000 of the total of approximately 5,300 Airbus jetliners sold by Airbus around the world, representing every aircraft in its product line from the 107-seat A318 to the 565-passenger A380, are ordered by North American customers. According to Airbus, US contractors, supporting an estimated 120,000 jobs, earned an estimated $5.5 billion (2003) worth of business. For example, one version of the A380 has 51% American content in terms of work share value.

Plans for aMobile, Alabamaaircraft assembly plant were unveiled by Airbus CEO Fabrice Brégier from the Mobile Convention Centre on 2 July 2012. The plans include a $600 million factory at theMobile Aeroplex at Brookleyfor the assembly of theA220,A319, A320 andA321aircraft. It could employ up to 1,000 full-time workers when operational. Construction began on 8 April 2013, and became operable by 2015,[51]producing up to 50 aircraft per year by 2017.[52][53]

Financial information[edit]

In October 2005 the BritishMinistry of Defencewarned European politicians to stop, as it saw it, interfering in the corporate governance of EADS. The former UK Defence Procurement MinisterLord Draysonhinted 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."[54]

On 4 April 2006, DaimlerChrysler announced its intention to reduce its shareholding from 30 % to 22.5 %. The company placed a value of the stake at "approximately €2.0 billion."[55]Lagardère was to 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 were now in imbalance.[56]

On 30 August 2006, shortly after the stock price decline caused by the A380 delivery delays, more than 5 % of EADS stock was reportedly purchased by the Russian state-ownedVneshtorgbank,[57][58]bringing its share to nearly 6 %. In December 2007, Vneshtorgbank sold EADS shares to another state-controlled bank,Vnesheconombank.EADS shares were to be delivered by Vneshekonombank to the charter capital of JSCUnited Aircraft Corporationin 2008.[59][60][importance?]

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 %.[importance?]

In 2007,Dubai Holdingacquired 3.12 % of EADS stock, making the Dubai buy-out fund one of the largest institutional shareholders.[61][importance?]

In 2008, EADS had arms sales equivalent to $17.9 billion, which constituted 28 % of total revenue.[62][importance?]

In April 2013, Daimler sold its shares in EADS.[63]

As of 22 June 2018,73.6 % of Airbus Group stock is publicly traded on six European stock exchanges, while the remaining 26.4 % is owned by a "Contractual Partnership". As of 26 April 2018, the partnership is owned bySOGEPA(11.1%), GZBV (11.1%) andSEPI(4.2%). SOGEPA is owned by the French State, GZBV is majority owned byKfW,and SEPI is a Spanish state holding company.[64]

In April 2020, Airbus announced that it had cut aircraft production by a third due to the COVID-19 outbreak. According to Guillaume Faury, the company was "bleeding cash at an unprecedented speed." The recession put its survival at stake and presented the need for deep job cuts throughout all Airbus departments. 3,000 workers in France were involved in government-assisted furlough schemes.[65]

Finances, in €[66] 2022[67] 2021[68] 2020[69] 2019[69] 2018[70] 2017
Sales, in millions 58,763Increase13% 52,149Increase4% 49,912Decrease29% 70,478Increase11% 63,707Increase8% 59,022
Portion defence sales, in millions 11,491Increase25% 9,175Decrease13% 10,517Increase4% 10,085Increase2% 9,903Increase1% 9,815
Earnings (losses) before interest and taxes,in millions 5,325Steady0% 5,342Decrease17% (510)Decrease138% 1,339Decrease73% 5,048Increase83% 2,665
Research and development expenses, in millions 3,079Increase12% 2,746Decrease4% 2,858Decrease15% 3,358Increase4% 3,217Increase15% 2,807
Consolidated net income (loss), in millions 4,247Increase1% 4,213Increase472% (1,133)Decrease17% (1,362)Decrease15% 3,054Increase29% 2,361
Earnings (losses) per share 5.40Increase1% 5.36Increase470% (1.45)Decrease17% (1.75)Decrease42% 3.94Increase29% 3.05
Dividend per share 1.80Increase20% 1.50 None None 1.65Increase10% 1.50
Free cash flow, in millions 4,324Increase33% 3,511Increase148% (7,362)Decrease296% 3,753Increase10% 3,505Increase9% 3,735
New orders, in millions 82,521Increase33% 62,007Increase86% 33,290Decrease59% 81,195Increase46% 55,521 –
Order backlog at year end, in millions 449,241Increase13% 398,439Increase7% 373,127Decrease21% 471,488Increase3% 459,525 –
Portion defence orders, in millions 47,242Increase10% 43,110Increase12% 38,587Increase1% 38,129Decrease3% 39,312 –
Employees at year end 134,267Increase6% 126,495Decrease4% 131,349Decrease3% 134,931Increase1% 133,671Increase3% 129,442
Accounted for underIFRS;fiscal year ending 31 December.
Financial results (2004–2013)
Finances, in €[66] 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Sales, in millions 59,256 56,480 49,128 45,752 42,822 43,265 39,123 39,434 34,206 31,761
Earnings (losses) before interest and taxes,in millions 2,661 2,186 1,696 1,231 (322) 2,830 52 399 2,852 2,432
Research and development expenses, in millions 3,160 3,142 3,152 2,939 2,825 2,669 2,608 2,458 2,075 2,126
Consolidated net income (loss), in millions 1,465 1,198 1,104 584 (722) 1,613 (433) 199 1,769 1,342
Earnings (losses) per share 1.85 1.46 1.27 0.68 (0.94) 1.95 (0.56) 0.12 2.11 1.50
Dividend per share 0.75 0.60 0.45 0.22 None 0.20 0.12 0.12 0.65 0.50
Free cash flow, in millions (818) 3,472 958 2,707 585 2,559 3,354 2,029 2,413 1,614
New orders, in millions 218,681 102,471 131,027 83,147 45,847 98,648 136,799 69,018 92,551 44,117
Order backlog at year end, in millions 686,734 566,463 540,978 448,493 389,067 400,248 339,532 262,810 253,235 184,288
Employees at year end 144,061 140,405 133,115 121,691 119,506 118,349 116,493 116,805 113,210 110,662
Accounted for underIFRS;fiscal year ending 31 December.

Environmental record[edit]

See also:Environmental impact of aviation

Airbus has committed to "Flightpath 2050", an aviation industry plan to reduce noise, CO2,andNOxemissions.[71]

Airbus was the first aerospace business to become ISO 14001 certified, in January 2007; this is a broader certification covering the whole organisation, not just the aircraft it produces.[72]

In association withHoneywellandJetBlue,Airbus has developed abiofuelto reduce pollution and dependence on fossil fuels, claiming that this has the potential to replace up to a third of the world's aviation fuel. Algae-based biofuel absorbs carbon dioxide during growth and does not compete with food production. This alternative may be commercially available by 2030 but algae and other vegetation-based fuels are in an early stage of development, and fuel-bearing algae have been expensive to develop.[73]Airbus offers delivery flights to airlines using a 10% biofuel blend in standard engines. The fuel does not cut carbon emissions but is free of sulphur emissions, which demonstrates that the fuel could be used in commercial flights in unmodified engines.[74]

In September 2020, Airbus unveiled threeliquid hydrogen-fueled "ZEROe" concept aircraft that it claims could become the first commercial zero-emission aircraft, entering service by 2035.[75][76]The design includes an aircraft with six eight-bladed turbo-prop removable motors.[77]

Controversies[edit]

Government subsidies[edit]

Boeing has continually protested over "launch aid" and other forms of government aid to Airbus, while Airbus has argued that Boeing receives illegal subsidies through military and research contracts and tax breaks.[78]

In July 2004, former Boeing CEOHarry Stonecipheraccused Airbus of abusing a 1992 bilateral EU-US agreement providing for disciplines for large civil aircraft support from governments. Airbus is given reimbursable launch investment (RLI), called "launch aid" by the US, from European governments, with the money being paid back with interest plus indefinite royalties, but only if the aircraft is a commercial success.[79]Airbus contends that this system is fully compliant with the 1992 agreement andWTOrules. The agreement allows up to 33% of the programme cost to be met through government loans, which are to be fully repaid within 17 years with interest and royalties. These loans are held at a minimum interest rate equal to the cost of government borrowing plus 0.25%, which would be below market rates available to Airbus without government support.[80]Airbus claims that since the signature of the EU-US agreement in 1992, it has repaid European governments more than U.S.$6.7 billion and that this is 40% more than it has received.

Airbus argues that the military contracts awarded to Boeing, the second largest U.S. defence contractor, are in effect a form of subsidy, such as the controversy surrounding the BoeingKC-767military contracting arrangements. The significant U.S. government support of technology development viaNASAalso provides significant support to Boeing, as do the large tax breaks offered to Boeing, which some people claim are in violation of the 1992 agreement andWTOrules. In its recent products such as the787,Boeing has also been offered direct financial support from local and state governments.[81]

In January 2005 the European Union and United States trade representatives,Peter MandelsonandRobert Zoellickrespectively, agreed to talks aimed at resolving the increasing tensions.[82][83]These talks were not successful with the dispute becoming more acrimonious rather than approaching a settlement.[84]

WTO ruled in August 2010 and in May 2011 that Airbus had received improper government subsidies through loans with below market rates from several European countries.[85]In a separate ruling in February 2011, WTO found that Boeing had received local and federal aid in violation of WTO rules.[86]

Cluster bomb allegation[edit]

In 2005 theGovernment Pension Fund of Norwayrecommended the exclusion of several companies producingcluster bombsor components. EADS and its sister company EADS Finance BV were among them, arguing that EADS manufactures "key components for cluster bombs". The criticism was centred around TDA, a joint venture between EADS and Thales S.A. TDA produced themortarammunition 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 theOttawa Treaty.According to the new point of view,[by whom?]no product of EADS or itssubsidiariesfalls into the category ofantipersonnel minesas defined by the Ottawa Treaty ( "landminesunder the Ottawa Treaty "). In April 2006, the fund declared that the basis for excluding EADS from investments related to the production ofcluster munitionsis no longer valid, however its shareholding of MBDA means the fund still excludes EADS due to its indirect involvement innuclear weaponsproduction.[87]

Insider trading investigation[edit]

On 2 June 2006 co-CEO Noël Forgeard and Airbus CEOGustav Humbertresigned 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 includingJean-Paul Gutwho exercisedstock optionsin November 2005 and March 2006. He and twenty-one other executives are[when?]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 were 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.[88]

Bribery allegations[edit]

South Africa[edit]

In 2003Tony Yengeni,formerchief whipof South Africa'sAfrican National Congress,was convicted of fraud worth around US$5 billion relating to an arms deal with South Africa, in which Airbus (formerly EADS) were major players.[89]It was claimed that Airbus had admitted that it had "rendered assistance" to around thirty senior officials, including defence force chief GeneralSiphiwe Nyanda,to obtain luxury vehicles.[90]In March 2003, South Africa withdrew all charges of bribery against the former head of EADS South Africa,[91]and in September 2004, the prosecutor's office dismissed the bribery charges against Yengeni.[citation needed]

Saudi Arabia[edit]

In August 2012 the UK'sSerious Fraud Officeopened a criminal investigation into an EADS subsidiary, GPT Special Project Management Ltd, regarding bribery allegations made by GPT's former programme director, Ian Foxley. Foxley alleged that luxury cars were bought for senior Saudis, and that millions ofpounds sterlingwere paid to mysteriousCayman Islandscompanies, possibly to secure a £2 billion contract to renew theSaudi Arabian National Guard's military telecommunications network.[92]Foxley's allegations were supported by two other GPT employees.[93]The later agreement between Airbus and the SFO on 31 January 2020 excluded the settlement of this case.[94]

British and French investigations[edit]

TheFrench National Financial Prosecutor's Office(PNF), the UKSerious Fraud Office(SFO) and the US Department of Justice (DoJ) had been jointly investigating irregularities in Airbus marketing practices since 2016, in particular the activities of agents Saudi Arabia, Kazakhstan, the Philippines, Indonesia and Austria,[d]but also China, the United Arab Emirates, South Korea, Japan, Saudi Arabia, Taiwan, Kuwait, Turkey, Russia, Mexico, Brazil, Vietnam, India, Colombia and Nepal.[94]

In July 2016, SFO opened a criminal investigation into "suspicions of fraud, bribes and corruption" after Airbus informed British authorities of a failure to disclose the role played by some intermediaries facilitating the sale of aircraft. Airbus was required to provide this information in order to benefit from export credits, which the British, French and German governments had suspended. In March 2017, the PNF subsequently opened a preliminary investigation into "suspicions of fraud and corruption in civil aviation activities" in cooperation with the SFO.[94]

The allegations included that from 2012 onwards Airbus was responsible for recruiting and remunerating intermediaries to influence the award of civil and military contracts. Payments worth hundreds of millions of euros in alleged secret commissions were made and numerous sales including inSaudi Arabia,Kazakhstan,Philippines,Indonesia,Austria,ChinaandMauritiuswere under suspicion of bribery.[95][verification needed][96]

The investigation focussed on the Airbus, Strategy and Marketing Organization (SMO), the department responsible for negotiating sales contracts and which, La Tribune reported as having "a network and an incredible influence around the world." Directed successively byJean-Paul GutandMarwan Lahoud,the SMO was dissolved in 2016 under the new executive director, Thomas Enders, as part of a “clean hands” operation.[97]

In 2014, in a case referred to as the Kazakhgate affair, a search atAirbus Helicoptersby French authorities found emails confirming that Airbus had agreed in principle to pay €12 million in bribes to the Prime Minister of Kazakhstan to facilitate the sale of helicopters. Officers from the Central Anti-Corruption Office (OCLCIFF) then searched the home ofMarwan Lahoudon 8 February 2016.[e]This revealed that two Turkish intermediaries had claimed payment of commissions due in connection with the sale of 160 aircraft to China valued at US$10 billion. A message by Lahoud suggested that the commissions could reach US$250 million. The SMO was to conceal these commissions as false invoices for a fictitious Caspian pipeline project.[f]

In January 2020, French, British and American courts validated three agreements between Airbus and the PNF,[98]the UK SFO,[94][99]and the US DoJ.[100][101]Airbus recognised the charges and agreed to pay fines of €2.1 billion in France, €984 million in the United Kingdom and €526 million in the United States. The penalties were the highest ever issued by the French and British bodies.[102][103][104]

These settlements close the prosecution of Airbus regarding the Kazakhstan case but not allegations of misconduct in Saudi Arabia, China and Turkey, which Airbus denies.[105]Airbus managers may still be pursued as private individuals.[g]

See also[edit]

Notes[edit]

  1. ^"EBIT"
  2. ^International Financial Reporting Standard IFRS 15 was applied from 2018
  3. ^"Orderbook"
  4. ^"The reports identified problematic transactions in the sale of civil aircraft in several countries, including Saudi Arabia, Kazakhstan, the Philippines, Indonesia and Austria. This list is far from exhaustive"[95]
  5. ^"In February 2016, French police officers from the Central Anti-Corruption Office searched the homes of both Lahoud, Airbus's former second-in-command"[95]
  6. ^"They revealed, too, the tricks the SMO used to hide the alleged commissions on the sale of 34 Airbuses to Turkey, thanks to false invoices in relation to a fictitious pipeline project in the Caspian Sea"[95]
  7. ^"The Agreement does not provide any protection against prosecution of any natural ' persons"[94]

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Further reading[edit]

External links[edit]

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