BAe Systems

There has been much speculation about the proposal by BAe Systems to sell its 20% stake in Airbus SAS to EADS and the effect this might have on Airbus UK and in particular its facilities at Broughton and Filton.  Negotiations between the two parties are proceeding.

Airbus SAS was created as an integrated company in 2001, with two shareholders - EADS which holds 80% and BAE Systems with 20%.  Airbus SAS owns Airbus UK which includes the facilities at Broughton and Filton.  Since 2001 the BAE Systems participation has been a financial one (through dividends) and it has no involvement in the day to day running of the business.  All employment contracts are with Airbus and there is no reason to believe that the sale will affect the 13,000 jobs in the UK.  Airbus UK and the plant union representatives have confirmed this view.  

Airbus has invested some €350m per annum in its UK facilities over the past 6 years (mainly in wing assembly at Broughton).  It is also recruiting heavily in the UK to satisfy the high technology know-how that it requires for its new aircraft programmes.  This all demonstrates a significant commitment to its UK operations.  Nevertheless the Welsh Assembly Government is not complacent about the sale and my officials will continue to monitor the situation closely through their contacts with Airbus UK and DTI officials.