How British is EADS?

In an increasingly global aerospace industry, how important is it where a company is from? Very important, it seems. At least according to the people who police press advertisements which appear in the UK to ensure they are fair and truthful.

EADS has been banned by the UK advertising watchdog, the ASA, from running an advertisement that uses the slogan "I am British" and pictures the Airbus A330 tanker, centrepiece of the AirTanker consortium's bid for the Royal Air Force's ｣13 billion refuelling contract.

For years, EADS has been trying to be seen as British, and in many ways it is as British as it is German or French. It's certainly as British as it is Spanish. Let's examine the facts. Although EADS's main shareholders are German (30%) and French (30%), a huge proportion of the third of its shares that are traded on three European stock exchanges are owned by UK institutions. More importantly, around 13,000 of EADS's employees work in the UK at Airbus (80% owned by EADS), MBDA (jointly owned with BAE Systems and Finmeccanica) and its defence and space businesses. Its UK operations account for 8% of EADS's revenues and the UK Ministry of Defence is crucial to its defence fortunes.

"There are four home nations" any EADS manager will chorus if you suggest the company is Franco-German or Franco-German-Spanish.

And yet EADS has a devil of a job convincing UK public opinion and the Ministry of Defence of this. Part of the problem is the EADS brand. People in the UK know Airbus, they know "British Aerospace", they probably know Rolls-Royce makes aircraft engines rather than posh cars. But ask your granny who or what EADS is and she won't have a clue. A Reed colleague of mine - an avid planespotter in his spare time - had never heard of the company when I met him on a train and explained I was on my way to an EADS meeting.

That's why nearly five years after its creation EADS has been so keen to stress its Britishness, particularly when it comes to high-profile defence business. And it's why this ruling will come as a kick in the teeth.

Quite frankly, I think the ASA have got it wrong. Yes, in terms of ownership EADS is not a "British" company. But the A330 tanker - with UK-built wings and engines and most of the modification done in the UK- is as British as it is French or German or Spanish.