EADS is to buy BAE Systems' 25% share in satellite company Astrium for €165 million ($165 million), allowing it to reorganise its loss-making space operations. The European aerospace giant has reported serious first-half losses from a slack satellite market and the effects of Fairchild Dornier's bankruptcy. Net income was down dramatically from last year - €91 million against €1,657 million - but after removal of the one-time effect of last year's formation of Airbus SAS, earnings rose slightly to €775 million from €764 million. EADS warns rising A380 development costs and falling deliveries could push Airbus's second-half profits lower. In 2001, commercial aircraft represented two-thirds of EADS's revenue and almost all its earnings. Paradigm, the consortium which won the contract for the UK's Skynet 5 military satellite network, has been converted into a BAE/EADS joint venture which will use equipment from Astrium.
Source: Flight International