Airbus to focus defence and space efforts with non-core sales

“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.”

The units being sold or which Airbus is unloading its stake in are:

*Professional Mobile Radio, a secure communications system used by police and security forces

*Atlas Elektronik, which makes naval electronics and which the company owns 49pc of

*Fairchild Controls, a US-based supplier of valves and fluid controls

*Rostock System-Technik, a German cabin simulator manufacturer

*ESG, a software company in which Airbus has a 30pc stake and which serves the aerospace and auto industries

*AvDef, an in-house charter airline which also trains French military pilots.

The decision will place Airbus’ share of the Eurofighter project and its own A400M airlifter at the centre of its non-civilian aircraft portfolio.

The announcement was well received by the market, with Investec saying the disposals would create a “leaner and meaner” business.

Analyst Rami Myerson said: “This is a positive statement of management’s intent to restructure the division to maximise shareholder value. Stabilising, and even growing, defence budgets, combined with a number of aerospace and defence companies with solid balance sheets and an appetite for mergers and acquisitions should help Airbus extract good value from the disposals.”

He added that he expected the disposals to take 12 to 18 months and raise between €1.5bn and €2bn.

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