BAE SYSTEMS Welcomes A380 Industrial Launch

BAE Systems today welcomed the decision to proceed with the industrial launch of the new large A380 airliner (previously known as the A3XX) - a milestone decision, which commits Airbus to producing the aircraft.

The Airbus partners – BAE Systems and EADS (the European Aeronautic Defence and Space Company) – officially approved the launch at today’s Airbus Industrie Supervisory Board meeting.

Mike Turner, BAE Systems' chief operating officer and Supervisory Board member, said: "Today marks the real beginning for the most important civil aircraft project the world has witnessed for several decades. BAE Systems is committed to Airbus, determined to continue to take an active role in its future in which the A380 will play a major part and, to benefit as a shareholder.

"With 50 firm orders and many more options already in place from quality airline customers worldwide, our confidence in the demand for the A380 in the marketplace has shown itself to be well-placed. The A380 family is a very important addition to the Airbus product range, helping Airbus to capitalise on its success with the ability to compete across the entire large civil aircraft market."

He continued: "For the UK, which leads the work on the A380 integrated wing design and manufacture, today's decision will create around 22,000 jobs on the wing alone. Work will be carried out at a number of BAE Systems sites, primarily at Filton, Bristol and Broughton, North Wales and at many suppliers both in the UK and worldwide. Today's launch will now allow contracts with suppliers to be finalised."

Assembly of A380 wings will be carried out at the Airbus UK site at Broughton where major enlargement of the factory will take place to accommodate increasing activity on both Airbus and other aircraft programmes undertaken at the site.

The Bristol site, which is already the centre for A380 wing design, will also manufacture key sections of the wings - including the inboard trailing edge assemblies and other strategic work packages.

Broughton is in the process of recruiting 1700 people, many of whom will be engaged on the A380 programme. At Filton 300 engineers have been recruited in the last six months, mainly to work on A380 and recruitment will continue over the coming year.

A380 is set to bring economic benefits to the UK for some 40 years and is expected to provide around £20 billion in net exports. In March 2000, the UK Government announced it was making available £530 million repayable launch investment that will cover a substantial part of the £2 billion UK investment in the programme.

Notes to Editors:

Aircraft: The all new, very large double-deck A380 airliner is being designed for reliability, lower seat-mile costs and the environmental considerations of the 21st century. It will also set new standards in passenger comfort. The aircraft family will start from the baseline A380, with a capacity of 555 passengers and a range of up to 15,100 km/8,150 nm.
Market: Airbus Industrie forecasts a market of 1,235 passenger aircraft and 315 freighters in the A380 size category - a total of 1,550 aircraft, over the next 20 years - and it expects to capture at least half of those orders.
Six customers have placed orders for 50 A380 aircraft (plus 42 options):
Emirates - 5 passenger aircraft and 2 freighters (plus 5 options);
Singapore Airlines - 10 (plus 15 options);
Air France - 10 aircraft;
International Lease Finance Corporation - 5 aircraft;
Qantas - 12 aircraft;
Virgin Atlantic - 6 aircraft (plus 6 options).
Flights: The first customer to take delivery of an A380 will be Singapore Airlines in the first quarter of 2006. Before this, first flight of the aircraft for testing and certification purposes will take place in 2004.

About BAE SYSTEMS:

BAE Systems is the truly global systems, defence and aerospace company. BAE Systems employs more than 100,000 people, in nine home markets around the world and has annual sales of some £12 billion. The company offers an unrivalled global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs and manufactures civil and military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products.