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The Division is well positioned to win orders for refuelling tankers and medium and light aircraft. Measures are being taken to minimise the A400M delay and to foster growth.
|
(€m) |
2007 |
2006 |
Variation |
|
|
|
|
|
|
Revenues |
1,140 |
2,200 |
-48% |
|
-155 |
75 |
-307% | |
|
Order intake |
784 |
1,594 |
-51% |
|
Order book |
19,932 |
20,337 |
-2% |
Following the appointment of Carlos Suárez as the new Division’s Chief Executive Officer in July, Military Transport Aircraft (MTA) launched a major business transformation with a view to driving cultural change and strengthening project management. At the same time, the Division initiated a comprehensive risk review, the results of which directly impacted the 2007 accounts. In parallel, management took action to tackle the root causes of the A400M delay.
For 2007, the Division’s revenues declined to € 1.1 billion (€ 2.2 billion in 2006) largely due to the postponement of the A400M Power-On milestone (€ 470 million) to 2008. The EBIT dropped to a loss of € 155 million (compared with a gain of € 75 million in 2006), mainly reflecting adjustment of the A400M programme margin, as well as inventory impairments and programme charges.
The A400M final assembly is progressing. The first airframe has been completed, and components for the second aircraft have arrived at the Final Assembly Line (pictures).
The order book remained substantial at € 19.9 billion, slightly below 2006’s € 20.3 billion. This is marginally behind expectations because the expected tanker orders from Saudi Arabia and the U.K. have slipped to 2008. In the medium-light turboprop range, a total of 19 aircraft orders were placed from customers around the world, including the U.S. Coast Guard with five additional CN-235 for its 
Deepwater programme.
Tankers lift off
Selection in early 2008 of the A330 MRTT (Multi-Role Tanker Transport) as the new tanker aircraft for the U.S. Air Force was a major breakthrough in the global tanker market and the U.S. defence market, creating a solid basis for future growth. EADS will provide 179 tanker aircraft over the coming years. The A330 MRTT has won several orders against tough competition. In 2007, the United Arab Emirates and Saudi Arabia decided to purchase it as their new air-to-air refuelling aircraft. Following the earlier order by Australia and the closing of the FSTA (Future Strategic Tanker Aircraft) deal in the U.K. in March 2008, the A330 MRTT is confirmed as the most advanced and capable tanker aircraft in the market.
Flight tests of the aircraft are continuing, with all aerodynamic tests successfully completed. The new ARBS (Air-to-air Refuelling Boom System) performed its first in-flight contact with a fighter plane, and fuel was passed.
Rescheduling A400M
The A400M final assembly is progressing. The first airframe has been completed, and components for the second aircraft have arrived at the final assembly line. “Power-On” milestone was passed in March 2008. The engine has been mounted on a C-130 test bed for the upcoming flight tests. However, as already disclosed in October 2007, there will be programme delays of six to 12 months.
There are currently orders for 192 A400M, 180 from the launch countries, eight from South Africa and four from Malaysia.
For the A400M, management is working closely with all internal and external partners to ensure the first flight in summer 2008. Apart from industrialising the programme, the Division is developing a comprehensive end-to-end services offering to be available just in time for the entry into service of the fleet with the nations. The service strategy is aimed at creating value for customers and will be a key contributor to widening the programme’s business case. In direct competition with EADS, several large European and international aerospace groups are vying for this business.
The Division started a business transformation programme, designated Horizon 2011. Over the next three years, management will elaborate and implement plans for reducing costs, growing new products and services, fostering cultural change and improving internal processes and controls.
