Airbus Plans Fighter Business Merger in Defense Division Overhaul

Airbus is set to merge two separate fighter aircraft businesses as part of a comprehensive reorganization within its Defence & Space division, according to sources from labor unions.

This strategic move will unite Military Air Systems, encompassing Airbus’s involvement in the Eurofighter project, with the division responsible for overseeing Airbus’s share in the Franco-German-Spanish FCAS/SCAF project. The latter initiative aims to replace Eurofighter aircraft and French Rafales.

In response to queries about this consolidation, part of the broader Defence & Space restructuring known as ATOM, an Airbus spokesperson stated, “We are currently discussing the details and ideas with our social partners.” The spokesperson emphasized that the transformation would potentially involve some organizational refinements, but the primary focus would be on governance, processes, and work methodologies.

Military Air Systems, led by Jean-Brice Dumont, also includes key programs such as the A400M and C295 transporters, the MRTT aerial tanker initiative, and unmanned vehicles like Eurodrone.

Airbus is a pivotal player in the FCAS/SCAF project, collaborating closely with France’s Dassault Aviation. Last December, they reached a significant agreement regarding the development of a demonstrator for the project. The Airbus segment of this program is overseen by Bruno Fichefeux.

In July, Airbus Chief Executive Guillaume Faury revealed that the Defense & Space reorganization was aimed at enhancing the division’s agility. While specifics about the restructuring have not been disclosed by the company, Faury emphasized the necessity of this transformation for resilience and competitiveness within the division.

Despite a broad uptick in global demand for defense equipment since the Ukraine conflict began, Airbus Defence & Space remains the company’s second-largest division in terms of revenue but the least profitable. It trails behind the company’s jetliners and helicopters divisions in terms of profitability.

At the halfway point of this year, Airbus Defence & Space reported 87 million euros in operating profit from sales totaling 4.65 billion euros. This marked a return to profitability compared to the same period the previous year when the division recorded a loss.

Sources: AirGuide Business airguide.info, msn.com, airbus.com, reuters.com