BAE SystemsBAE Systems, plc is the world's fourth largest defense contractor [2] and a commercial aerospace products manufacturer. Based in the United Kingdom (UK) the company has extensive worldwide interests, particularly North America. HistoryEvolution of UK aviation, 1955 to BAE Systems formation in 1999FormationIt was formed on November 30, 1999 with the merger of British Aerospace (BAe) and Marconi Electronic Systems (MES), the defence arm of The General Electric Company (GEC). The merger had been agreed on April 27, 1999. It was widely anticipated that BAe would merge with Germany’s DASA to form a pan-European aerospace giant, however BAe chose instead to merge with GEC’s defence electronics business. This move, to create what could be described as a UK company compared to what would have been an Anglo-German firm, made the possibility of penetration of the United States (US) defence market more likely. Following that decision, DASA instead merged with Aerospatiale to create the European Aeronautic Defence and Space Company (EADS). This group was joined by Spain’s CASA following an agreement in December 1999. Since the creation of BAE Systems the company has steadily increased its investment in, and its revenues from, the US, while continental European companies have made limited moves into that massive market. Major European companies such as Thales and EADS are unlikely to ever be awarded, for example, a position relative to BAE Systems' involvement in the F-35 Joint Strike Fighter programme. BAE Systems inherited the "special" shareholding that was established when British Aerospace was privatised. This special share, with a nominal value of £1, is held on behalf of the Secretary of State for Trade and Industry. This shareholding prevents amendments of certain parts of the Articles of Association without the Secretary of State's permission. These Articles include the following requirements:
Merger undertakingsVarious conditions were attached to approval of the merger between BAe and MES.
Expansion & further consolidationWith almost total consolidation of the defence industry on the European continent, BAE Systems turned its attention to North America, for example acquiring Lockheed Martin Control Systems, (LMCS) which produces controls for the B-2 Spirit bomber, the C-17 Globemaster strategic transport, the F/A-18, the Boeing 757 and Boeing 767 commercial jets. Of all the company's activities the most profitable are the Al Yamamah contracts to supply and support the Royal Saudi Air Force. This deal produces nearly half of the company's profits, £411m ($700m) out of £980m in 2003. In June 2003, rumours started to circulate about a possible merger with either Boeing (who acquired BAE Systems' former partner McDonnell Douglas in 1997) or Lockheed Martin. Later that year the Boeing's Chief Executive denied any possibility of a North American merger on the grounds of "conflict of interest" pertaining to the affiliation with the Airbus consortium. However, if that were the only stumbling block, it seems likely that BAE Systems would gladly sell its minority share in Airbus to gain a greater share in North American aerospace and defence projects. The appeal of a link with a North American company is irresistible as the US defence market is by far the largest in the world. The company already has $9bn worth of sales to the Pentagon and any further move into the North American market would yield yet more. This is particularly the case if BAE Systems can win prime-contractor status on a major project. BAE Systems faces considerably fewer hurdles in this sense than their European counterparts, as there is a high degree of integration between the US and UK defence establishments. In May 2004, it was reported that BAE Systems was considering selling its shipbuilding division, the two Clyde shipyards and the Barrow-in-Furness yard. The company would only say that it was reviewing its operations. If it decided to sell it was understood that General Dynamics would like to acquire the submarine building facilities at Barrow, while Vosper Thornycroft was said to be interested in the remaining yards. BAE Systems without its shipbuilding assets would be a more attractive partner to an American company such as Boeing - which has stated that the shipbuilding operations are of no interest to them. As of 2005 the more likely move for BAE Systems' shipbuilding operations is their merger with other British shipyards to form a "Newco" shipbuilding company. On June 4, 2004 BAE Systems outbid General Dynamics for Alvis Vickers. What had seemed a certain win for the US company was stopped by BAE Systems' surprise move. It has been seen as an attempt to keep such a strong competitor "at bay" in BAE Systems' "backyard." On February 20, 2005 The Observer reported that BAE Systems was considering selling its 20% stake in Airbus to pursue further acquisitions in the US; a BAE Systems source denied any such move. On March 7, 2005 BAE Systems announced the $3.974bn acquisition of the United States defence company United Defense Industries (UDI). UDI is primarily a land systems manufacturer, boosting BAE Systems' involvement in this sector and its sales in the important North American market. UDI manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions. EurosystemsOn January 28, 2005 BAE Systems and Finmeccanica announced the intention to dissolve their partnership in the AMS joint venture with AMS' UK and Italian operations to be taken over by the respective partners as arranged through the Eurosystems Transaction. On May 3, 2005, the Eurosystems Transaction was finalised with:
StrategyIn the company's 2003 Annual Report Sir Richard Evans sums up BAE Systems' strategy since the Marconi merger:
ManagementIn late March 2004, after more than 30 years with the company (and its predecessors), BAE Systems' longstanding Chairman Sir Richard Evans announced his successor. Dick Olver, formerly the deputy chief-executive of BP, succeeded Sir Richard on July 1, 2004. This appointment came at a significant time with stock market confidence still recovering from a shock profit warning in December 2002. This was due to cost overruns of the Nimrod MR4 maritime reconnaissance/attack aircraft and the Astute SSN projects. BAE Systems took a hit of $1.369bn on these projects. BAE Systems' CEO is Mike Turner, who replaced John Weston in 2002. Weston was forced out in what was a surprise move. It is understood that Turner, like Evans, has a poor working relationship with senior Ministry of Defence officials, including the Defence Secretary Geoff Hoon. Significantly the first meeting between Olver and Hoon is said to have gone well, a MoD official has said "He is a man we can do business with. We think it is good to be taking a fresh look at things." [3] In July, 2004 Olver announced a review of all of BAE Systems' activities, which will be conducted by independent analysts lead by investment bank Morgan Stanley. This review will advise the group on what its strategy should be and hence what acquisitions or disposals it needs to make. Harry Stonecipher, former CEO of Boeing, has criticised the vertical integration of BAE Systems. Reports in 2005 have suggested that relations between the Chairman (Olver) and CEO (Turner) are strained. These suggest that Olver has been involving himself in parts of the business which a Chairman traditionally hasn't. In June 2005 Turner heightened investor concerns of boardroom tensions by crticising Olver's knowledge of the defence industry, "[he] has a low knowledge base and knows nothing about our industry" [4]. Turner did suggest however that Olver was on a learning curve, "He'll fully understand it [in 5 years]. This is a business that takes time to understand. It's not just business, it's political." [5] OrganisationAirbus UKAirbus UK is a wholly owned subsidiary of BAE Systems and produces wings for the Airbus aircraft family. Airbus UK has two main sites; Broughton in North Wales carries out final assembly and Filton produces components and wing sections. Filton is also home to a retired Concorde. Hawker Siddeley (which merged with British Aircraft Corporation (BAC) in 1977 to form British Aerospace) was part of the first Airbus projects, the Airbus A300. The British government withdrew support in 1969 but Hawker Siddeley was allowed to continue as supplier of the aircraft's wings due to the advanced stages of design and the reluctance of other nations to take over the wing design. In 1979 BAe rejoined the Airbus consortium. In 2001 Airbus Industrie became Airbus S.A.S., the Airbus Integrated Company. Airbus UK started work on the wings for the Airbus A380 in August 2002. BAE Systems Air SystemsAir Systems manages BAE Systems’ military aircraft projects, primarily:
BAE Systems Integrated System TechnologiesBAE Systems Integrated System Technologies (to be known informally as Insyte) was formed on May 3, 2005 by bringing together BAE Systems' interests in C4ISR and the UK operations of AMS following the Eurosystems Transaction (see Expansion & further consolidation for further details). The division is a major supplier of defence electronics, integrated command & control (C²) systems, radar, simulators, meteorological systems, data links and C4ISR battle management systems. BAE Systems Customer Solutions & SupportBAE Systems Customer Solutions & Support (CS&S) provides through life support and upgrades for defence forces.
The RAF Tornado GR4 upgrade is an excellent example of the work undertaken by the CS&S division. BAE Systems Land SystemsBAE Systems Land Systems was created in 2004 to consolidate BAE Systems’ land warfare systems expertise by bringing together RO Defence and the newly acquired Alvis Vickers. This group provides Armoured vehicles, explosives, Artillery Ammunition, Mortars, Small Arms, Naval Ammunition Launchers, Warheads (e.g. BROACH), Multiple Launch Rocket Systems, Tank and Artillery Ordnance, Electronic Systems. With the acquisition of United Defense Industries in 2005 Land Systems became part of BAE Systems Land and Armaments, based in Arlington, VA, USA. BAE Systems Naval ShipsFormed in 2003 BAE Systems Naval Ships was formed to centralise BAE Systems' shipbuilding operations. This new company took the surface vessel shipyards at Scotstoun and Govan, formerly part of BAE Systems Marine. At the same time the Barrow shipyard, BAE Systems Marine (VSEL), became part of BAE Systems Submarines (see below). As well as services, construction products include:
BAE Systems North AmericaBAE Systems North America’s headquarters are in Rockville, Maryland and the division has facilities in 30 US states and Washington D.C. Perhaps the single most important division of BAE Systems, it is the business which gives BAE Systems access to the American aerospace and defence market. This is important due to the unmatched $400bn spent on defence by the US government. This has led to a situation where BAE Systems' North American operations now account for approximately 30% of the company’s profits while its UK operations (its "home market") now accounts for less than 25%. Businesses purchased in the US by the former GEC businesses before the merger and BAE Systems after the merger include:
BAE Systems Regional AircraftBAE Systems Regional Aircraft produced the last fully UK-built airliner in November 2001, the Avro RJX (formerly the BAE 146). While this unit no longer produces aircraft it continues to lease aircraft and provide support, spares and training for its products, the
BAE Systems Shared ServicesBAE Systems Shared Services is the group with BAE Systems responsible for managing resources and directing operations. It manages BAE Systems’ car and aircraft fleets, employee payroll, services and benefits. Shared Services also manages BAE Systems’ Advanced Technology Centre and the company’s IT & e-services contracts. An important part of the company is Property & Environmental Services which manages BAE Systems’ own property and provides specialist services such as defence site decommissioning. BAE Systems SubmarinesBAE Systems Submarines, until 2003 a unit within BAE Systems Marine, is responsible for the development and production of the Astute class submarine. The submarines are constructed at BAE Systems’ yard at Barrow-in-Furness. The Astute class is a new generation of nuclear attack submarine (SSN) for the Royal Navy. The order for the initial batch of three ships was place in 1997, with Vickers Shipbuilding and Engineering, since absorbed into BAE Systems . BAE Systems Underwater SystemsThis company is responsible for BAE Systems’ extensive range of underwater warfare products:
BAE Systems Platform SolutionsPlatform Solutions is based in the US as part of BAE Systems North America with facilities in the UK. The company provides vehicle management, power systems, guidance and control interfaces for vehicles, aircraft and UAVs. Atlas ElektronikAtlas Elektronik, a German marine systems business, is a wholly owned subsidiary of BAE Systems. The company is based in Bremen. Gripen InternationalFormed in 2001, Gripen International is a joint company for the marketing of the JAS-39 Gripen fighter. This co-operation dates back to 1995 when Saab and British Aerospace established a joint venture for Gripen export marketing. MBDA UKBAE Systems holds a 37.5% share interest in the World's secong largest missile systems manufacturer, MBDA. The remaining shares are held by EADS (37.5%) and Finmecannica (25%). SELEX Sensors and Airborne SystemsSELEX Sensors and Airborne Systems (SELEX S&AS), a joint venture with Finmeccanica in which BAE Systems has a 25% stake, was formed in May 2005 (see Expansion & further consolidation. SELEX S&AS incorporates the majority of the former BAE Systems Avionics business. Primary businesses are; airborne radar systems, Electronic Warfare (EW) systems, military lasers and electro-optical systems. Shareholdings
ProductsBAE Systems is in an enviable position. The company either leads or has a major stake in some of the most high profile, high technology civil and military aerospace and maritime projects in the world. This is not a complete list, only major projects are included. Some are: Air
Land
Sea
Future
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Some are:. Ryanair's total firm orders stand at 230 and the newly ordered aircraft will be delivered in spring 2007 (ref: Air International, July 2005). This is not a complete list, only major projects are included. On 13 June 2005 Ryanair confirmed a $286 million order for 5 Boeing 737-800 aircraft, which is a conversion of five existing options from an order in 2002. The company either leads or has a major stake in some of the most high profile, high technology civil and military aerospace and maritime projects in the world. It currently has firm orders for an additional 225 Boeing 737-800 aircraft by 2010, with options on a further 193. BAE Systems is in an enviable position. The Ryanair fleet consists of the following aircraft (at April 2005):. Primary businesses are; airborne radar systems, Electronic Warfare (EW) systems, military lasers and electro-optical systems. Ryanair's interactive destination map. SELEX S&AS incorporates the majority of the former BAE Systems Avionics business. The London-Dublin route is the busiest international route in the world after Hong Kong-Taipai. SELEX Sensors and Airborne Systems (SELEX S&AS), a joint venture with Finmeccanica in which BAE Systems has a 25% stake, was formed in May 2005 (see Expansion & further consolidation. This is largely due to the number of Irish people who live in the UK – the amount of business and money traded between the two cities – and increasingly the number of Irish who use the route to make connecting flights to other places in Europe. The remaining shares are held by EADS (37.5%) and Finmecannica (25%). Of all Ryanair's routes, the Dublin-London route remains both the busiest and the most profitable. BAE Systems holds a 37.5% share interest in the World's secong largest missile systems manufacturer, MBDA. That's 11 km closer than the main Landvetter Airport. This co-operation dates back to 1995 when Saab and British Aerospace established a joint venture for Gripen export marketing. One exception is Gothenburg, Sweden, where Ryanair flies to the town's City Airport, 14 km from city centre. Formed in 2001, Gripen International is a joint company for the marketing of the JAS-39 Gripen fighter. Most smaller airports Ryanair operates to are located farther from the city centres than their main airports. The company is based in Bremen. Ryanair has other bases throughout Europe, at Brussels, Barcelona Girona, Dublin (DUB), Frankfurt am Main (HHN), London Luton Airport, Liverpool, Milan (BGY), Prestwick (PIK), Rome (CIA), Shannon International Airport and Stockholm Skavsta Airport. Atlas Elektronik, a German marine systems business, is a wholly owned subsidiary of BAE Systems. Its main hub is London Stansted Airport. The company provides vehicle management, power systems, guidance and control interfaces for vehicles, aircraft and UAVs. Ryanair currently serves about 200 routes between 104 airports in 18 European countries. Platform Solutions is based in the US as part of BAE Systems North America with facilities in the UK. Main article: Ryanair destinations. This company is responsible for BAE Systems’ extensive range of underwater warfare products:. The last low-cost airline to compete directly with Ryanair on the UK/Ireland routes was Go Fly – which had to pull out due to mounting losses. The order for the initial batch of three ships was place in 1997, with Vickers Shipbuilding and Engineering, since absorbed into BAE Systems . easyJet does fly from Aldergrove in Northern Ireland, but Ryanair does not operate there. The Astute class is a new generation of nuclear attack submarine (SSN) for the Royal Navy. In September 2004, Ryanair's biggest competitor, easyJet, announced routes to the Republic of Ireland for the first time, begining with the Cork to London Gatwick route – until then easyJet had never competed directly with Ryanair on its home ground. The submarines are constructed at BAE Systems’ yard at Barrow-in-Furness. Despite traditionally being a full-service airline, Aer Lingus began to adopt a low-fares strategy in 2002, leading to much more intense competition with Ryanair on Irish routes – Ryanair's most profitable. BAE Systems Submarines, until 2003 a unit within BAE Systems Marine, is responsible for the development and production of the Astute class submarine. In 2004 approximately 60 new low-cost airlines were formed. An important part of the company is Property & Environmental Services which manages BAE Systems’ own property and provides specialist services such as defence site decommissioning. Among Ryanair's main low-cost competitors are easyJet, Air Berlin, Germanwings and Transavia. Shared Services also manages BAE Systems’ Advanced Technology Centre and the company’s IT & e-services contracts. [13] [14]. It manages BAE Systems’ car and aircraft fleets, employee payroll, services and benefits. The woman eventually went to court and won an award of £43,098. BAE Systems Shared Services is the group with BAE Systems responsible for managing resources and directing operations. She received the prize in 1988, but the airline refused to carry her free of charge on a flight in 2002. While this unit no longer produces aircraft it continues to lease aircraft and provide support, spares and training for its products, the. In 2002 Ryanair reneged on a promise of free flights given as a prize to the airline's one millionth passenger, Jane O'Keeffe. BAE Systems Regional Aircraft produced the last fully UK-built airliner in November 2001, the Avro RJX (formerly the BAE 146). A court ruling in 2004 judged that the responsibility should be shared by the airline and the airport owners [12]. Businesses purchased in the US by the former GEC businesses before the merger and BAE Systems after the merger include:. However, the airline argued that this provision was the responsibility of the airport authority stating that wheelchairs were provided by 87 of the 93 Ryanair destination airports. This has led to a situation where BAE Systems' North American operations now account for approximately 30% of the company’s profits while its UK operations (its "home market") now accounts for less than 25%. In 2002 it refused to provide wheelchairs for disabled passengers at Stansted Airport, hugely angering disabled rights groups [11]. This is important due to the unmatched $400bn spent on defence by the US government. The airline has come under heavy criticism in the past for its poor treatment of disabled passengers. Perhaps the single most important division of BAE Systems, it is the business which gives BAE Systems access to the American aerospace and defence market. In March of the same year, a Belgian court ruled that two sacked Belgian cabin staff who had been working out of the airport of Charleroi were entitled to protection under Belgian law, not Irish law as Ryanair had claimed [10]. BAE Systems North America’s headquarters are in Rockville, Maryland and the division has facilities in 30 US states and Washington D.C. Several successful actions have been brought against the company: On 25 January 2005 the Irish Labour Court guaranteed an investigation into allegations of victimisation of staff who wished to join a trade union [9]. As well as services, construction products include:. Staff are banned from charging their own mobile phones at work to reduce the company's electricity bill [8], even though the cost savings by such measures are insignificant. At the same time the Barrow shipyard, BAE Systems Marine (VSEL), became part of BAE Systems Submarines (see below). Ryanair has also come under fire from unions representing workers in the airline industry for refusing to recognise trade unions, and allegations of poor working conditions. This new company took the surface vessel shipyards at Scotstoun and Govan, formerly part of BAE Systems Marine. Walloon authorities who offered the subsidies were considering appealing against the ruling because of the roughly € 45 million that the airline route brings to the area every year. Formed in 2003 BAE Systems Naval Ships was formed to centralise BAE Systems' shipbuilding operations. In February 2004 the European Commission ruled that Charleroi airport gave Ryanair illegal subsidies and ordered the airline to repay roughly € 4 million of subsidies. With the acquisition of United Defense Industries in 2005 Land Systems became part of BAE Systems Land and Armaments, based in Arlington, VA, USA. The EC believes that subsidies from state-owned airports are a breach of European Union competition rules. BROACH), Multiple Launch Rocket Systems, Tank and Artillery Ordnance, Electronic Systems. Ryanair receives subsidies from some European airports, a situation which has been investigated by the European Commission. This group provides Armoured vehicles, explosives, Artillery Ammunition, Mortars, Small Arms, Naval Ammunition Launchers, Warheads (e.g. Two of them are now in storage, and two have been sold off to other operators. BAE Systems Land Systems was created in 2004 to consolidate BAE Systems’ land warfare systems expertise by bringing together RO Defence and the newly acquired Alvis Vickers. The airline announced in October 2004 that the remaining -200s will be disposed of by November 2005. The RAF Tornado GR4 upgrade is an excellent example of the work undertaken by the CS&S division. Ryanair argues that the planes are well maintained, but has already scrapped a number of them for technical reasons. BAE Systems Customer Solutions & Support (CS&S) provides through life support and upgrades for defence forces. These aircraft date from the early 1980s and some industry observers believe that Ryanair has pushed them beyond their usable service life. The division is a major supplier of defence electronics, integrated command & control (C²) systems, radar, simulators, meteorological systems, data links and C4ISR battle management systems. The airline has been criticised for the age of its elderly Boeing 737-200 aircraft, which were bought second hand from Lufthansa and Britannia Airways. BAE Systems Integrated System Technologies (to be known informally as Insyte) was formed on May 3, 2005 by bringing together BAE Systems' interests in C4ISR and the UK operations of AMS following the Eurosystems Transaction (see Expansion & further consolidation for further details). Michael O'Leary often states that the airline goes to extremes to make a point, an approach which has resulted in Ryanair's advertising occasionally being considered offensive [6] [7]. Air Systems manages BAE Systems’ military aircraft projects, primarily:. Ryanair does not employ an advertising agency, instead producing all its advertising material in-house. Airbus UK started work on the wings for the Airbus A380 in August 2002. It is due to be implemented during 2005 under the State Airports Act 2004). In 2001 Airbus Industrie became Airbus S.A.S., the Airbus Integrated Company. (The break-up of Aer Rianta remains a high profile demand for Michael O'Leary. In 1979 BAe rejoined the Airbus consortium. Also criticised are what are seen as vitriolic attacks on opponents, notably former Irish Minister for Transport Mary O'Rourke (1997-2002), who was personally ridiculed in a series of controversial newspaper advertisements when she refused to break up the state monopoly which then ran Irish airports, Aer Rianta (now largely restructured). The British government withdrew support in 1969 but Hawker Siddeley was allowed to continue as supplier of the aircraft's wings due to the advanced stages of design and the reluctance of other nations to take over the wing design. Etienne (Lyons)", but in other cases court actions have upheld the designated name of the route — this was the case for Frankfurt Hahn, over 100 km from central Frankfurt. Hawker Siddeley (which merged with British Aircraft Corporation (BAC) in 1977 to form British Aerospace) was part of the first Airbus projects, the Airbus A300. Legal actions forced name changes on routes previously referred to as "Düsseldorf (Niederrhein)" and "St. Filton is also home to a retired Concorde. This service is now advertised as Malmö. Airbus UK has two main sites; Broughton in North Wales carries out final assembly and Filton produces components and wing sections. For example, the airline used to advertise a service to "Copenhagen", Denmark which actually flew to Malmö, in Sweden. Airbus UK is a wholly owned subsidiary of BAE Systems and produces wings for the Airbus aircraft family. Ryanair is often accused of flying to airports which, while cheap, are too far away from the cities they say they are serving. It's not just business, it's political." [5]. The airline refuses to provide accommodation or meal vouchers when flights are cancelled or delayed. This is a business that takes time to understand. Critics have accused Ryanair of poor treatment of customers whose flights have been cancelled [5]. Turner did suggest however that Olver was on a learning curve, "He'll fully understand it [in 5 years]. In a number of incidents it has responded stubbornly to relatively trivial matters, often to make a point about the constant need to avoid adding "frills" to its service. In June 2005 Turner heightened investor concerns of boardroom tensions by crticising Olver's knowledge of the defence industry, "[he] has a low knowledge base and knows nothing about our industry" [4]. Ryanair has been heavily criticised for many of its practices in the past. These suggest that Olver has been involving himself in parts of the business which a Chairman traditionally hasn't. In August 2004, the airline carried 20% more passengers within Europe than British Airways did. Reports in 2005 have suggested that relations between the Chairman (Olver) and CEO (Turner) are strained. The rapid addition of new routes and new hubs has enabled this growth in passenger numbers, and Ryanair is now among the largest carriers on European routes. Harry Stonecipher, former CEO of Boeing, has criticised the vertical integration of BAE Systems. Carrying under 0.7 million annually in its early years, passenger figures grew to 21.4 million in 2003. This review will advise the group on what its strategy should be and hence what acquisitions or disposals it needs to make. Ryanair's passenger numbers have grown by up to 25% every year for the best part of the last decade. In July, 2004 Olver announced a review of all of BAE Systems' activities, which will be conducted by independent analysts lead by investment bank Morgan Stanley. However, it has been consistent with the growth of other no-frills airlines, such as Southwest and JetBlue, since the September 11, 2001 terrorist attacks. We think it is good to be taking a fresh look at things." [3]. In an industry where the survival rate is 1 in 10 and where even the giants such as American Airlines and Delta struggle to keep in the black, Ryanair's success has confounded many industry analysts. Significantly the first meeting between Olver and Hoon is said to have gone well, a MoD official has said "He is a man we can do business with. Revenues have risen from € 231 million in 1998 to some € 843 million in 2003, and net profits have increased from € 48 million to € 239 million over the same period. It is understood that Turner, like Evans, has a poor working relationship with senior Ministry of Defence officials, including the Defence Secretary Geoff Hoon. After taking the rapidly growing airline public in 1997 he used the money raised to expand the airline into a pan-European carrier. Weston was forced out in what was a surprise move. The driver of the growth has been Ryanair's CEO, Michael O'Leary. BAE Systems' CEO is Mike Turner, who replaced John Weston in 2002. Ryanair has grown massively since its creation in 1985, from a small airline flying the short hop to London from Ireland into one of Europe's largest carriers. BAE Systems took a hit of $1.369bn on these projects. The aircraft will be delivered without window shades, seat back recline and seat back pockets, which result in savings of several hundred thousand dollars per aircraft and give continued savings through reduced cleaning and repair costs. This was due to cost overruns of the Nimrod MR4 maritime reconnaissance/attack aircraft and the Astute SSN projects. Some of these aircraft would be deployed at Ryanair's 12 European bases, others to 10 new bases they intend to establish over the next seven years. This appointment came at a significant time with stock market confidence still recovering from a shock profit warning in December 2002. This is expected to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011 and creating 2,500 new jobs. Dick Olver, formerly the deputy chief-executive of BP, succeeded Sir Richard on July 1, 2004. In February 2005 Ryanair announced an order for 70 further Boeing 737-800 aircraft with an option for a further 70. In late March 2004, after more than 30 years with the company (and its predecessors), BAE Systems' longstanding Chairman Sir Richard Evans announced his successor. Since the accession countries joined the EU on 1 May 2004, Ryanair has opened new routes to three of the ten new EU member states. In the company's 2003 Annual Report Sir Richard Evans sums up BAE Systems' strategy since the Marconi merger:. However, the enlargement of the European Union in 2004 is expected to lead to more new routes as Ryanair and other budget airlines tap the markets of the EU accession countries. On May 3, 2005, the Eurosystems Transaction was finalised with:. A modest loss of € 3.3 million in the second quarter of 2004 was the airline's first recorded loss for 15 years, indicating turbulent times in the low fares market. On January 28, 2005 BAE Systems and Finmeccanica announced the intention to dissolve their partnership in the AMS joint venture with AMS' UK and Italian operations to be taken over by the respective partners as arranged through the Eurosystems Transaction. During 2004, Michael O'Leary warned of a 'bloodbath' during the winter from which only two or three low-cost airlines would emerge, the expectation being that these would be Ryanair and easyJet. UDI manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions. The airline launched two more bases in the first half of 2004, at Rome (Ciampino) and Barcelona (Girona), increasing the total to 11 hubs. UDI is primarily a land systems manufacturer, boosting BAE Systems' involvement in this sector and its sales in the important North American market. By the end of 2003, the airline flew 127 routes, of which 60 had opened in the previous 12 months. On March 7, 2005 BAE Systems announced the $3.974bn acquisition of the United States defence company United Defense Industries (UDI). Expansion continued apace with the launch of a base at Stockholm (Skavsta), Sweden. On February 20, 2005 The Observer reported that BAE Systems was considering selling its 20% stake in Airbus to pursue further acquisitions in the US; a BAE Systems source denied any such move. In April Ryanair acquired its ailing competitor Buzz from KLM, at a knock-down price. It has been seen as an attempt to keep such a strong competitor "at bay" in BAE Systems' "backyard.". In 2003, Ryanair announced the order of a further 100 new Boeing 737-800 series aircraft from Boeing, and in February a third continental base was opened at Milan-Bergamo in Italy. What had seemed a certain win for the US company was stopped by BAE Systems' surprise move. In 2002 Ryanair launched 26 new routes and established a base in Frankfurt-Hahn Airport, its European expansion firmly on track. On June 4, 2004 BAE Systems outbid General Dynamics for Alvis Vickers. 100 of these aircraft will have been delivered by the end of 2005. As of 2005 the more likely move for BAE Systems' shipbuilding operations is their merger with other British shipyards to form a "Newco" shipbuilding company. Later that year, the airline ordered 155 new Boeing 737-800 series aircraft from Boeing at what was believed to be a substantial discount, (taking advantage of the downturn in plane orders after the slump in air travel following the September 2001 terrorist attacks) to be delivered over eight years from 2002 to 2010. BAE Systems without its shipbuilding assets would be a more attractive partner to an American company such as Boeing - which has stated that the shipbuilding operations are of no interest to them. Ryanair launched a new hub of operation in Brussels Charleroi in 2001. If it decided to sell it was understood that General Dynamics would like to acquire the submarine building facilities at Barrow, while Vosper Thornycroft was said to be interested in the remaining yards. Michael O'Leary claimed that it was his idea from the start. The company would only say that it was reviewing its operations. Within a year the website was handling three quarters of all bookings, and now accounts for 95% of the total. In May 2004, it was reported that BAE Systems was considering selling its shipbuilding division, the two Clyde shipyards and the Barrow-in-Furness yard. Increasingly the online booking contributed to the aim of cutting flight prices by selling direct to passengers and excluding the costs imposed by travel agents. BAE Systems faces considerably fewer hurdles in this sense than their European counterparts, as there is a high degree of integration between the US and UK defence establishments. Some senior management saw the potential of online booking, but kept it low profile to avoid its elimination by the Chief Executive. This is particularly the case if BAE Systems can win prime-contractor status on a major project. The airline launched its website in 2000, with on line booking said to be a small and unimportant part of the software supporting the site. The company already has $9bn worth of sales to the Pentagon and any further move into the North American market would yield yet more. The airline was voted Airline of the Year by the Irish Transport Users Committee and voted Best Managed National Airline by International Aviation Week magazine. The appeal of a link with a North American company is irresistible as the US defence market is by far the largest in the world. Flush with new capital, the airline placed a massive US$2 billion order for 45 new Boeing 737-800 series aircraft in 1998. However, if that were the only stumbling block, it seems likely that BAE Systems would gladly sell its minority share in Airbus to gain a greater share in North American aerospace and defence projects. After a highly successful flotation of Ryanair on the Dublin Stock Exchange and the NASDAQ Stock exchanges, the airline launched services to Stockholm, Oslo, Paris and Charleroi near Brussels. Later that year the Boeing's Chief Executive denied any possibility of a North American merger on the grounds of "conflict of interest" pertaining to the affiliation with the Airbus consortium. After EU deregulation of the air industry in Europe in 1997, Ryanair was ready to take on the continent. In June 2003, rumours started to circulate about a possible merger with either Boeing (who acquired BAE Systems' former partner McDonnell Douglas in 1997) or Lockheed Martin. Various conditions were attached to approval of the merger between BAe and MES. He adopted a hands-on style of management, becoming well known for the fact that despite being Chief Executive, he regularly helped out with baggage handling on Ryanair flights at Dublin airport. These Articles include the following requirements:. Flights were scheduled into smaller airports, closer and more convenient for customers. This shareholding prevents amendments of certain parts of the Articles of Association without the Secretary of State's permission. He competed with the major airlines by providing a no-frills, low cost, flexible and reliable service. This special share, with a nominal value of £1, is held on behalf of the Secretary of State for Trade and Industry. O'Leary returned convinced that Ryanair could make huge inroads into the European air market, at that time dominated by national carriers which were subsidised to various degrees by their parent countries. BAE Systems inherited the "special" shareholding that was established when British Aerospace was privatised. O'Leary quickly learnt that the key to low fares was a quick turn-around time, no frills, and no business class, as well as operating only one model of aircraft. Major European companies such as Thales and EADS are unlikely to ever be awarded, for example, a position relative to BAE Systems' involvement in the F-35 Joint Strike Fighter programme. Ryan encouraged him to visit the USA to study the 'low fares/no frills' model being used by Southwest Airlines. Since the creation of BAE Systems the company has steadily increased its investment in, and its revenues from, the US, while continental European companies have made limited moves into that massive market. He negotiated significant bonuses and profit-sharing deals for himself, conditional upon bringing the airline into profit. This group was joined by Spain’s CASA following an agreement in December 1999. Michael O'Leary was charged with the task of making the airline profitable. Following that decision, DASA instead merged with Aerospatiale to create the European Aeronautic Defence and Space Company (EADS). Passenger numbers continued to increase, but the airline generally ran at a loss, and by 1991 was in need of restructuring. This move, to create what could be described as a UK company compared to what would have been an Anglo-German firm, made the possibility of penetration of the United States (US) defence market more likely. With two routes and two planes, they carried 82,000 passengers in one year. It was widely anticipated that BAe would merge with Germany’s DASA to form a pan-European aerospace giant, however BAe chose instead to merge with GEC’s defence electronics business. In 1986 the company added a second route - flying Dublin-London Luton in competition to the BA/Aer Lingus duopoly for the first time. The merger had been agreed on April 27, 1999. The airline began with a 15 seat turboprop aircraft flying between Waterford and London Gatwick with the aim of breaking the duopoly on London-Ireland flights at that time held by British Airways and Aer Lingus. It was formed on November 30, 1999 with the merger of British Aerospace (BAe) and Marconi Electronic Systems (MES), the defence arm of The General Electric Company (GEC). Ryanair was founded in 1985 by Irish businessman Tony Ryan. . . Based in the United Kingdom (UK) the company has extensive worldwide interests, particularly North America. Critics, meanwhile, have attacked its trade union policies [3], and have charged that it practises deceptive advertising [4]. BAE Systems, plc is the world's fourth largest defense contractor [2] and a commercial aerospace products manufacturer. Its supporters praise its commitment to exceptionally low fares, its radical management, its populism, and its willingness to challenge what Ryanair calls the 'establishment' within the airline industry (similar to its American counterpart, Southwest Airlines). This is due for delivery around 2018. Ryanair is one of Europe's most controversial companies, praised and criticised in equal measure [2]. Future Offensive Air System Astute class submarine Bofors Defence
M109 Paladin. 7 Boeing 737-200. M3 Bradley Cavalry Fighting Vehicle. [15]. M2 Bradley Infantry Fighting Vehicle. Subsequent media reports suggested that the man was going to hijack the aircraft and fly it into the United States Embassy in London. CAESAR advanced artillery system. Ryanair Flight 685 from Stockholm's Vasteras airport to London Stansted in September 1, 2002 was delayed by several hours after a Swedish man of Arabic origin was detained after attempting to board the aircraft with a loaded gun. Advance Gun System (AGS) for next generation United States Navy surface combatants. The UK Air Accident Investigation Board recommended changes to training procedures for air-crew to allow better handling of similar situations in future. United Defense
Challenger II. ICAO Code: RYR. BAE Systems Land Systems
Marinised Harrier, primarily air defence. GR9 is an avionics and weapons upgrade of the standard GR7 to allow carriage of the latest smart weapons, new inertial navigation and Global Positioning Systems. Harrier GR7/GR9 Tornado GR4 BAE Nimrod MRA4 Airbus A400M MBDA (37.5%). Eurofighter Jagdflugzeug GmbH (33%). (20%). Airbus S.A.S. Acoustics countermeasures. Remote minesweepers. Spearfish torpedo. Stingray torpedo. BAe 748. Jetstream. BAe ATP. Avro RJ/BAE 146 family. 2005 - United Defense Industries. 2004 - ALPHATECH. 2004 - DigitalNet Holdings Inc. 2004 - Boeing Commercial Electronics. 2004 - STI Government Systems. 2003 - MEVATEC. 2003 - Advanced Power Technologies, Inc (APTI). 2000 - Lockheed Martin Control Systems (LCMS). 1998 - Tracor. Offshore patrol vessels. Type 45 Destroyer. Royal Navy Future Carrier (CVF). CS&S Naval has completed the reactivation of the Royal Navy's Type 22 Frigates for Romania. Past projects include reactivation of the Upholder class, now reactivated as the Victoria Class submarines for the Canadian Government, and Vanguard class upgrades. CS&S Naval provides maintenance, repairs, minor and major refits for naval vessels. This includes simulator construction and support and operation of the RAF’s North Sea Air Combat Manoeuvring Instrumentation (AMCI) Range. Training Solutions provides a wide range of services. BAE Systems Australia provides the same services as the wider CS&S organization but is based in Australia. Operational Services provides spares and support for BAE Systems products including the Hawk, VC-10, Canberra, Nimrod and Jaguar aircraft as well as naval products. Nimrod MRA4. BAE Hawk. F-35 Joint Strike Fighter. Eurofighter Typhoon. the avionics portions of BAE Systems and Finmeccanica being brought together to form the new SELEX Sensors and Airborne Systems (S&AS) joint venture held by shares of 25% and 75% respectively, with the option for Finmeccanica to later purchase the remaining 25%. the communications systems portions of AMS and BAE Systems being sold to Selenia Communications, a division of Finmeccanica. the UK operations of AMS (minus air traffic control and communication systems) being brought together with the C4ISR division of BAE Systems (minus communication systems) to form the new Integrated System Technologies (Insyte) division of BAE Systems. The remit of this job was strictly set out, including the qualifications (length of time with the company etc), access to staff and information, and independence. A compliance officer was appointed by BAE Systems to ensure the new company followed these requirements and procedures. Other relevant projects were; the Future Scout & Cavalry System (FSCS)/TRACER Program (“FSCS/TRACER Program”), Skynet 5, Astute class Training Programme and MES shipbuilding projects. An example of this was the initial stages of the Joint Strike Fighter programme where MES was involved in Boeing's X-32 project and BAe supported Lockheed Martin's X-35 bid. Due to the competition of BAe and MES in various major defence projects, the company was ordered to set up various "firewalls" to prevent interaction between the former MES and BAe teams on those projects. the new subsidiaries must not automatically receive sub-contracts. BAE Systems must competitively tender sub-contracts, i.e. including external companies) on equal terms. Further these subsidiaries must be available to all potential prime contractors (i.e. The MES shipyards and Marconi Avionics were to be kept as subsidiaries of the new company, with independent financial accounts. The CEO and Chairman must be British. The majority of the board must be British citizens. No foreign person, or persons acting together, may hold more than 15% of the company's shares. |