Tom Enders asked a question this month – is EADS a public company or is it a state-run operation?

Victoria
By Victoria October 11, 2012 12:36

Tom Enders asked a question this month – is EADS a public company or is it a state-run operation?

Well we all knew the answer to that one didn’t we. But before anyone has a go at Mr Enders they have to take note of the EADS position in all this. EADS was quite literally offered the chance of becoming the largest defence group on the planet while at the same time shifting what is essentially an aerospace group into all areas of military spend. A good deal for a publicly-traded company, not good for a joint government venture seeking to keep total control. I wonder what Tom will say about the whole saga, as it has confirmed what Boeing has been saying to the WTO for six years.

However what was BAE Systems management thinking when they instigated this whole saga? BAE Systems was kept out of Europe and EADS in the past to ensure that it had access to the US market. And did the guys in the boardroom at BAE Systems really think that the UK and the US would put what little military secrets they had left in the hands of the French and German governments whilst at the same time risking the future of the UK defence industry for a knockdown price? Come on… Defence spending is due to fall off a cliff at the moment but with China building a battle fleet in the East, Syria and Iran collapsing in the Middle East and with Argentina testing the UK in the Americas, do you really think that deep defence spending cuts in areas other than troop reductions as set out four years ago will not be amended? A re-think is being forced upon governments already.

For Tom Enders though the exercise was one of enlightenment. His limitations are now clear. For the boardroom of BAE Systems the exit door looms large from what investors tell us. This is not a defence site so that is where we will leave it.

Meanwhile: Russia is demanding an explanation from Turkey over its forced landing of a Syrian civil aircraft heading from Moscow to Damascus. The passengers were then allowed to continue their journey after some of the cargo in the hold had been seized. The Russian government interest was limited seemingly to lack of access to 17 Russian citizens. When covert government actions are deliberately allowed to become public it is a warning.

It has also emerged that the Turkish government had forbidden Turkish flights from travelling through Syrian airspace because of the risk involved and a possible Syrian response. One aircraft carrying Turkish pilgrims to Saudi Arabia from Bursa airport landed at Adana airport in Turkey because of this new restriction. The conflict is already having an effect on THY. THY has grown exponentially over recent years with many new deliveries coming during this year and next. This conflict has the potential to damage THY and Pegasus Airlines.

Victoria
By Victoria October 11, 2012 12:36
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