in Defence / Business & Finance
Airbus to sell off non-core defence and space activities
Airbus Defence and Space is to sell off a number of its business divisions in order to focus on Space (launchers & satellites), military aircraft, missiles and the related systems and services.
Among the business areas being divested are commercial and para-public communications (including professional mobile radio and commercial satellite communications services). Airbus said these activities will have better chances for growth and market success under different ownership structures.
Investments in subsidiaries and ventures, including Fairchild Controls, Rostock System-Technik, AvDef, ESG and Atlas Elektronik will be sold.
"The portfolio decisions for Airbus Defence and Space are the logical follow-up to our group strategy review in 2013. They will foster the strengths of the division and, hence, will result in an even stronger focus on our Group's core activities, aeronautics and space," said Tom Enders, CEO of Airbus Group.
“Given the tight budgetary situation in our home countries and increasing competition on global markets, the portfolio review is an essential element to further develop our defence and space business and to ensure its competitiveness”, said Bernhard Gerwert, CEO of Airbus Defence and Space. “We have identified those segments where this is an achievable target and those where we should explore alternative options. In short, the portfolio review is a logical next step in the overall transformation process. It will strengthen Airbus Defence and Space’s business core, unlocking its full potential to drive the defence and space industry forwards, particularly on critically important international growth markets.
“All these decisions will of course respect our national security agreements and will be discussed with employee representatives in a fair and open way,” Gerwert said.
In a statement Airbus said that the first milestone of the transformation was the reorganisation of the three former business entities – Astrium, Airbus Military and Cassidian – into one single organisation. This target was achieved on 1 July 2014, according to plan. A next significant milestone was to secure the future of the division’s space launcher business, which received a major boost through the planned joint venture with Safran, in June 2014, and which is currently being further developed.