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111-403: The company was a subsidiary of BAE Systems until December 2005, when it was sold to ThyssenKrupp and EADS . Atlas Elektronik became a wholly owned subsidiary of ThyssenKrupp Marine Systems in 2017. The company was founded in 1902 as Norddeutsche Maschinen- und Armaturenfabrik GmbH , focusing on shipbuilding and naval engineering services. Its name was changed in 1911 to Atlas Werke AG ,

222-456: A joint stock company . In return for a 20% share in the new company BAE Systems transferred ownership of its Airbus plants (known as Airbus UK ) to the new company. Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20% share of Airbus, the possibility was denied by the company. However, on 6 April 2006 it was reported that it was indeed to sell its stake, then "conservatively valued" at £2.4 billion. Due to

333-441: A "core business". On 18 August 2006 Saudi Arabia signed a contract worth £6 billion to £10 billion for 72 Eurofighter Typhoons, to be delivered by BAE Systems. On 10 September 2006 the company was awarded a £2.5 billion contract for the upgrade of 80 Royal Saudi Air Force Tornado IDSs. One of BAE Systems' major aims, as highlighted in the 2005 Annual Report, was the granting of increased technology transfer between

444-540: A "strategic bias" for expansion and investment in the US. The review also confirmed the attractiveness of the land systems sector and, with two acquisitions in 2004 and 2005, BAE moved from a limited land systems supplier to the second largest such company in the world. This shift in strategy was described as "remarkable" by the Financial Times . Between 2008 and early 2011 BAE acquired five cybersecurity companies in

555-572: A deal worth £800 million. The deal was significant because it was a factor in India's decision to finalise a £1 billion order for 66 Hawks in March 2004. Also in July 2003 BAE Systems and Finmeccanica announced their intention to set up three joint venture companies, to be collectively known as Eurosystems . These companies would have pooled the avionics, C4ISTAR and communications businesses of

666-810: A key element of the United Kingdom's nuclear weapons capability. BAE has operated the Holston Army Ammunition Plant in Tennessee, since 1999, and the Radford Army Ammunition Plant in Radford , Virginia since 2012. BAE Systems' biggest markets are the US 44%, UK 20%, Saudi Arabia 11% and Australia 4%, as of 2022. BAE Systems is the main supplier to the UK MoD ; in 2009/2010 BAE Systems companies in

777-406: A large defence electronics supplier, into STN Atlas Elektronik GmbH . Five years later, in 1997, STN Atlas was taken over by Rheinmetall (51%) and BAE Systems (49%). In 2003 STN Altas was split; Rheinmetall acquired the land systems business (Rheinmetall Defence Electronics) and BAE took control of the naval business, keeping the name Atlas Elektronik. BAE Systems announced it intended to sell

888-432: A major American defence contractor, for £830 million (about US$ 1.4 billion). The 1997 merger of American corporations Boeing and McDonnell Douglas , which followed the formation in 1995 of Lockheed Martin , the world's largest defence contractor, increased the pressure on European defence companies to consolidate. In June 1997, British Aerospace Defence managing director John Weston commented "Europe ...

999-631: A merger had been reportedly agreed between British Aerospace Chairman Richard Evans and DASA CEO Jürgen Schrempp in December 1998. However, when the British General Electric Company (GEC) put its defence electronics business Marconi Electronic Systems (MES) up for sale on 22 December 1998, BAe's management opted to abandon the DASA merger in favour of purchasing its British rival. During 2004, Evans stated that his fear

1110-526: A move described by The Independent as "one of the most spectacular and brutal boardroom coups witnessed in many years." Evans described the troubles as a confluence of events: "our property company [Arlington Securities] was hit with a lousy market. Sales of the Rover Group sank by about a fifth and losses mounted. The government's defence spending volumes underwent a major review. Losses in our commercial aerospace division increased dramatically with

1221-589: A perfect solution." The attraction of MES to British Aerospace was largely its ownership of Tracor, a major American defence contractor. British Aerospace British Aerospace plc ( BAe ) was a British aircraft , munitions and defence-systems manufacturer that was formed in 1977. Its head office was at Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire . It purchased Marconi Electronic Systems ,

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1332-478: A provider of vehicle and individual armour systems and survivability technologies. BAE Systems (and British Aerospace previously) was a technology partner to the McLaren Formula One team from 1996 to December 2007. The partnership originally focused on McLaren's F1 car's aerodynamics, eventually moving on to carbon fibre techniques, wireless systems and fuel management. BAE Systems' main interest in

1443-434: A sharp increase in interim sales and profits. In August 2023 BAE agreed to acquire the aerospace division of US-based Ball Corporation for $ 5.6 billion in cash (approximately £4.5 billion); this was BAE's largest acquisition up until that point and was completed on 16 February 2024. In October 2023, BAE was awarded a £3.95 billion contract for development work on Aukus-class submarines up to 2028. BAE Systems plays

1554-673: A shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks". In 2000 Matra Marconi Space , a joint BAE Systems/Matra company, was merged with the space division of DASA to form Astrium . On 16 June 2003 BAE sold its 25% share of Astrium for £84 million, however due to the lossmaking status of the company, BAE Systems invested an equal amount for "restructuring". BAE Systems sold its 54% majority share of BAE Systems Canada , an electronics company, in April for CA$ 310 (approx. £197 million as of December 2010). In November 2001,

1665-637: A shock profit warning due to cost overruns of the Nimrod MRA4 maritime reconnaissance/attack aircraft and the Astute -class submarine projects. On 19 February 2003 BAE took a charge of £750 million against these projects and the Ministry of Defence (MoD) agreed to pay a further £700 million of the cost. In 2000 the company had taken a £300 million "loss charge" on the Nimrod contract which

1776-532: A significant role in the production of military equipment. In 2017, 98% of BAE Systems' total sales were military related. It plays important roles in military aircraft production. The company's Typhoon fighter is one of the main front line aircraft of the RAF. The company is a major partner in the F-35 Lightning II programme. Its Hawk advanced jet trainer aircraft has been widely exported. In July 2006,

1887-595: A stainless steel leading edge, giving it different flex characteristics from the AV-8B. In December 1989, the first RAF squadron to be equipped with the Harrier II was declared operational. In 1979, BAe officially joined the multinational aircraft manufacturer Airbus and acquired a 20% share in the venture, the move effectively reversed a decision made ten years prior in which the UK government had withdrawn its support for

1998-590: A temporary collaboration to produce a single design as per its original mission statement; it had become a long-term brand for the development of further aircraft. By the late 1980s, work had begun on a pair of new wide-body airliners, the biggest to be produced at this point under the Airbus name; these would be launched in the 1990s as the Airbus A330 and the Airbus A340 . During the 1983 Paris Air Show ,

2109-631: Is a British multinational aerospace , defence and information security company, based in London , England. It is the largest manufacturer in Britain as of 2017. It is the largest defence contractor in Europe and the seventh-largest in the world based on applicable 2021 revenues. Its largest operations are in the United Kingdom and in the United States, where its BAE Systems Inc. subsidiary

2220-615: Is competitive, however largely between American firms, while foreign companies are excluded. In December 2005 the MoD published the Defence Industrial Strategy (DIS) which has been widely acknowledged to recognise BAE Systems as the UK's "national champion". The government claimed the DIS would "promote a sustainable industrial base, that retains in the UK those industrial capabilities needed to ensure national security." After

2331-476: Is headquartered at the existing facility in Telford, Shropshire. In August 2020 BAE Systems completed the purchase of United Technologies ' military GPS businesses for $ 1.9 billion and Raytheon 's military airborne radios business for $ 275 million. The sale of these two business was a condition of the merger approval that saw their two parent companies merge to form Raytheon Technologies . In November 2020,

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2442-469: Is one of the six largest suppliers to the US Department of Defense . Its next biggest markets are Saudi Arabia, then Australia; other major markets include Canada, Japan, India, Turkey, Qatar, Oman and Sweden. The company was formed on 30 November 1999 by the £ 7.7 billion purchase of and merger of Marconi Electronic Systems (MES), the defence electronics and naval shipbuilding subsidiary of

2553-540: Is supporting three times the number of contractors on less than half the budget of the U.S." European governments wished to see the merger of their defence manufacturers into a single entity, a "European Aerospace and Defence Company". As early as 1995, British Aerospace and the German aerospace and defence company DaimlerChrysler Aerospace (DASA) were said to be keen to create a transnational aerospace and defence company. The two companies envisaged including Aérospatiale,

2664-577: The Astute -class submarines, Type 26 frigates and Dreadnought -class submarines. BAE Systems is indirectly engaged in production of nuclear weapons – through its share of MBDA it is involved with the production and support of the ASMP missile, an air-launched nuclear missile which forms part of the French nuclear deterrent . The company is also the UK's only nuclear submarine manufacturer and thus produces

2775-626: The Astute -class submarines, and the Type 26 frigates were all confirmed in the 2010 SDSR. A new generation of nuclear missile submarines, the Dreadnought -class , was ordered in 2016. BAE Systems sold the regional aircraft leasing and asset management arm of its Regional Aircraft business in May 2011. This unit leases the BAe 146 /Avro RJ family, BAe ATP , Jetstream and BAe 748 . The company retained

2886-471: The BAe 146 , a short-haul regional airliner that had been previously worked on by Hawker Siddeley. The company marketed it as a quiet and economic turbofan -powered compact airliner that could replace the previous generation of turboprop -powered feeder aircraft. In 1982, the first completed aircraft made its first flight. Upon its launch into service the following year, it was hailed as being "the world's quietest jetliner". In 1993, an upgraded model of

2997-687: The Comet , the world's first commercial jet airliner; Hawker Siddeley , manufacturer of the Harrier , the world's first VTOL attack aircraft; British Aircraft Corporation , co-manufacturer of the Concorde supersonic transport; Supermarine , manufacturer of the Spitfire ; Yarrow Shipbuilders , builder of the Royal Navy 's first destroyers ; Fairfield Shipbuilding and Engineering Company , builder of

3108-486: The Concorde supersonic airliner with Aérospatiale . British Aerospace was a civil and military aircraft manufacturer, as well as a provider of military land systems. The company had emerged from the massive consolidation of UK aircraft manufacturers since World War II. British Aerospace was formed on 29 April 1977, by the nationalisation and merger of the British Aircraft Corporation (BAC),

3219-612: The Department of Trade and Industry which prevented a reference of the merger to the Monopolies and Mergers Commission . These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries. Another condition was the " firewalling " of former British Aerospace and MES teams on defence projects such as the Joint Strike Fighter (JSF). In 2007

3330-599: The General Electric Company plc (GEC), with British Aerospace , an aircraft, munitions and naval systems manufacturer. BAE Systems is the successor to various aircraft, shipbuilding, armoured vehicle, armaments and defence electronics companies, including the Marconi Company , the first commercial company devoted to the development and use of radio; A.V. Roe and Company , one of the world's first aircraft companies; de Havilland , manufacturer of

3441-539: The Gripen fighter aircraft. In 2005 it reduced this share to 20.5% and in March 2010 announced its intention to sell the remainder. The Times stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft". Several of the export campaigns for the aircraft were subject to allegations of bribery and corruption. The company continued its move into support services in May 2010 with

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3552-627: The Hawker Siddeley Group and Scottish Aviation . Both BAC and Hawker Siddeley were themselves the result of various mergers and acquisitions. Marconi Electronic Systems was the defence subsidiary of British engineering firm the General Electric Company (GEC), dealing largely in military systems integration , as well as naval and land systems. Marconi's heritage dates back to Guglielmo Marconi 's Wireless Telegraph & Signal Company, founded in 1897. GEC purchased English Electric (which included Marconi) in 1968 and thereafter used

3663-539: The Lockheed Martin X-35 Joint Strike Fighter team. The following year, BAe acquired the UK operations of Siemens Plessey Systems (SPS) from Siemens , while DASA purchased SPS' German assets. In the 1990s, BAe was the largest exporter based in the United Kingdom; a Competition Commission report released in 2005 calculated a ten-year aggregate figure of £45 billion, with defence sales accounting for approximately 80%. In

3774-695: The Lockheed Martin F-35 Lightning II , the Eurofighter Typhoon , the Astute -class submarine , and the Queen Elizabeth -class aircraft carriers . BAE is listed on the London Stock Exchange 's FTSE 100 Index . British Aerospace bought Marconi Electronic Systems for £7.7 billion on 30 November 1999 and merged with it to form BAE Systems. The company is the successor to many of

3885-496: The Panavia Tornado and Eurofighter Typhoon aircraft projects. Merger discussions began between British Aerospace and DASA in July 1998, just as French participation became more likely with the announcement that Aérospatiale was to merge with Matra and emerge with a diluted French government shareholding. A merger was agreed between British Aerospace chairman Richard Evans and DASA CEO Jürgen Schrempp . Meanwhile, GEC

3996-558: The Principal Anti-Air Missile System (PAAMS) consortium. UKAMS would become a wholly owned subsidiary of BAe Dynamics in 1998. In 1995, Saab Military Aircraft and BAe signed an agreement for the joint development and marketing of the export version of the JAS 39 Gripen . In 1996, BAe and Matra Defense agreed to merge their missile businesses into a joint venture called Matra BAe Dynamics . In 1997, BAe joined

4107-576: The Sema Group . BAe acquired Sema's 50% share in 1998. That year also saw BAe begin to experience major difficulties. BAe saw its share price fall below 100p for the first time. On 9 September 1991, the company issued a profits warning and later that week "bungled" the launch of a £432 million rights issue . On 25 September 1991 BAe directors led by CEO Richard Evans ousted the Chairman Professor Sir Roland Smith in

4218-538: The TAI TF Kaan aircraft. On 10 October 2017, BAE announced that it would lay off nearly 2,000 out of its approximately 35,000 employees in Britain, mainly due to an order shortage for the Typhoon fighter. In 2019 BAE Systems sold a 55% share of its UK land business to Rheinmetall . The resultant joint venture (JV), Rheinmetall BAE Systems Land (RBSL), was established in July 2019 following regulatory approval and

4329-600: The Trident jet airliner for a short time. Similarly, low-rate production of the BAC One-Eleven jet airliner, the Strikemaster two-seat military jet trainer/attack aircraft, and the iconic Concorde supersonic airliner also continued. On 29 July 1976, less than a year prior to BAe's formation, the contract for production of the first batch of the Panavia Tornado , an advanced nuclear-capable fighter bomber,

4440-413: The 1980s to shift the burden of risk to the contractor and were in contrast to "cost plus contracts" where a contractor was paid for the value of its product plus an agreed profit. BAE Systems was operating in "the only truly open defence market", which meant it was competing with US and European companies for British defence projects, while they were protected in their home markets. The US defence market

4551-567: The 500th aircraft to be completed was delivered to West Germany on 19 December 1987. Production of the Tornado ended in 1998, the final batch being delivered to the Royal Saudi Air Force , that had ordered a total of 96 IDS Tornados. Aviation author Jon Lake noted that "The Trinational Panavia Consortium produced just short of 1,000 Tornados, making it one of the most successful postwar bomber programs". In 1978, BAe relaunched

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4662-507: The Airbus consortium. Airbus' first aircraft, the A300 , had been received with little initial demand, but orders for the airliner had picked up in the late 1970s. By 1979, the consortium had 256 orders for A300, and Airbus had launched its second airliner, the A310 , less than 12 months prior to BAe formally joining the consortium. As time went on, it was becoming clear that Airbus was no longer

4773-570: The BAe 146, referred to as the Avro RJ series, superseded the original; changes included the replacement of the original Lycoming ALF 502 turbofan engines by higher-thrust LF 507 turbofan engines, which were housed in redesigned nacelles . The Avro RJ series also featured a modernised cockpit with EFIS replacing the analogue ADI, HSI, and engine instrumentation. Production of the Avro RJ ended with

4884-521: The British government declassified the HERTI (High Endurance Rapid Technology Insertion), an Unmanned Aerial Vehicle (UAV) which can navigate autonomously. It is currently developing a sixth-generation jet fighter aircraft for the RAF marketed as the " Tempest " along with the MoD, Rolls-Royce , Leonardo and MBDA. It is intended to enter service from 2035 replacing the Typhoon aircraft in service with

4995-521: The DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999. Evans stated in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA. The merger created a vertically integrated company which The Scotsman described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability", for example combining

5106-625: The French company Thales bid €300 million, but was blocked from purchasing Atlas on national security grounds. Airbus Defence and Space announcement sale its remaining shares in Atlas Elektronik to ThyssenKrupp on 12 January 2017. The merge of ThyssenKrupp Marine Systems and Atlas Elektronik was completed on 3 April 2017. The group also includes the associated subsidiaries Cybicom Atlas Defence (South Africa) and Advanced Lithium Systems (Greece) BAE Systems BAE Systems plc

5217-502: The Marconi brand for its defence businesses (as GEC-Marconi and later Marconi Electronic Systems). GEC's own defence heritage dates back to World War I, when its contribution to the war effort included radios and bulbs. World War II consolidated this position, as the company was involved in important technological advances, notably the cavity magnetron for radar . Between 1945 and 1999, GEC-Marconi/Marconi Electronic Systems became one of

5328-500: The MoD announced the award of a 20-year, £2.4 billion munitions contract to BAE. This will see BAE manufacture 39 different munitions for the UK armed forces and supersedes the 2008 MASS contract. In July 2023, BAE received a related £280 million order to address a munitions shortage caused by the supply of ammunition to Ukraine. In 2022, during the Russian invasion of Ukraine , major arms manufacturers, including BAE Systems, reported

5439-653: The RAF. BAE Systems Land and Armaments manufactures the M2/M3 Bradley fighting vehicle family, the US Navy Advanced Gun System (AGS), M113 armoured personnel carrier (APC), M109 Paladin , Archer , M777 howitzer , the British Army's Challenger 2 , Warrior Tracked Armoured Vehicle , Panther Command and Liaison Vehicle , and the SA80 assault rifle . Major naval projects include

5550-576: The UK Armed Forces' ammunition and required BAE to modernise its munitions manufacturing facilities. BAE Systems expanded its intelligence and security business with the £531 million purchase of Detica Group in July 2008. It continued this strategy with purchases of Danish cyber and intelligence company ETI for approximately $ 210 million in December 2010, and Norkom Group PLC the following month for €217 million. The latter provides counter fraud and anti-money laundering solutions to

5661-428: The UK and Saudi Arabia reached an agreement on an arms package which saw a £1.6 billion contract awarded to BAE for the delivery of 55 Pilatus PC-21 and 22 BAE Systems Hawk aircraft. The Sultanate of Oman ordered Typhoon and Hawk aircraft worth £2.5 billion in December 2012. In September 2012, it was reported that BAE Systems and EADS had entered merger talks which would have seen BAE shareholders own 40% of

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5772-499: The UK and the US. The F-35 (JSF) programme became the focus of this effort, with British government ministers such as Lord Drayson , Minister for Defence Procurement , suggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain F-35s independently. On 12 December 2006, Lord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of

5883-416: The aircraft. On 22 December 2006 BAE received a £947 million contract to provide guaranteed availability of Royal Air Force (RAF) Tornados. In May 2007 the company announced its subsidiary BAE Systems Inc. was to purchase Armor Holdings for £2.3 billion (approx. US$ 4.5 billion c. 2007) and completed the deal on 31 July 2007. The company was a manufacturer of tactical wheeled vehicles and

5994-576: The airframe's work-share in terms of man-hours. Production took place at McDonnell Douglas' facilities in suburban St Louis , Missouri , and manufacturing by BAe at its Kingston and Dunsfold facilities in Surrey , England. The variant procured for the RAF, which was known as the BAe Harrier II , featured many differences, including avionics fit, armaments and equipment; the wing of the GR5 featured

6105-633: The basis for the multinational Eurofighter Typhoon . In 1986, in conjunction Alenia Aeronautica , CASA and DASA , BAe formed Eurofighter GmbH for the development and production of the Eurofighter. The multinational organisation's head office was established in Hallbergmoos , Bavaria, Germany. The maiden flight of the Eurofighter prototype took place in Bavaria on 27 March 1994, flown by DASA chief test pilot Peter Weger. On 30 January 1998,

6216-514: The board or company. British Aerospace inherited a number of live development programmes from its predecessors. Scottish Aviation was working on a project for a 19-seat turboprop airliner, an upgraded version of the Handley Page Jetstream . BAe placed the Jetstream 31 into production after the first flight of the prototype in March 1980. At the same time, production of Hawker Siddeley's HS 125 business jet, Harrier VTOL jet fighter and HS 748 turboprop airliner continued under BAe, as did that of

6327-399: The committee concludes that the sale to BAe may well have been the best solution for the government." In 1991, BAe acquired a 30% interest in Hutchison Telecommunications through a stock swap deal, where Hutchison was given a controlling stake of 65% in BAe's wholly owned subsidiary Microtel Communications Ltd . In August 1991, BAe formed a naval systems joint venture, BAeSEMA , with

6438-447: The company announced the closure of the Avro Regional Jet ( Avro RJ ) production line at Woodford and the cancellation of the Avro RJX, an advanced series of the aircraft family, as the business was "no longer viable". The final Avro RJ to be completed became the last British civil airliner. In November 2001 BAE sold its 49.9% share of Thomson Marconi Sonar to Thales for £85 million. A further step of European defence consolidation

6549-427: The company in 2005. The main bidders were ThyssenKrupp / EADS , Thales Group and L-3 Communications . On December 30 the joint ThyssenKrupp/EADS bid, valued at €145 million (£100m), was named the winner with the companies holding 51% and 49% respectively. The bid was complicated by the requirement of the German government to approve any sale as acceptable. The Financial Times described the sale as "cut price" because

6660-400: The company proceed with the sale. Shareholders voted in favour and the sale was completed on 13 October. This saw the end of UK-owned involvement in civil airliner production. Airbus Operations Ltd (the former Airbus UK) continued to be the Airbus "Centre of Excellence" for wing production, employing over 9,500 in 2007. In February 2010 BAE Systems announced a £592 million writedown of

6771-619: The company's RO Defence unit to form BAE Systems Land Systems. Recognising the lack of scale of this business compared to General Dynamics, BAE Systems executives soon identified the US defence company United Defense Industries (UDI), a major competitor to General Dynamics, as a main acquisition target. On 7 March 2005 BAE announced the £2.25 billion (approx. US$ 4.2 billion c. 2005) acquisition of UDI. UDI, now BAE Systems Land and Armaments , manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions. In December 2005, BAE Systems announced

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6882-450: The company's shares. BAE Systems' first annual report identified Airbus, support services to militaries and integrated systems for air, land and naval applications as key areas of growth. It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described 2001 as an "important year" for its European joint ventures, which were reorganised considerably. The company has described

6993-444: The company, during which the public sale was 3.5 times subscribed and at the end of the first day's trading, share prices were 14% above the original offer price. The second phase occurred in May 1985, in which 48.4% shares were sold; this sale was 5.4 times subscribed and the first day closing price was 11% above the initial offer price. The British Government maintained a £1 golden share , which allowed it to veto foreign control of

7104-508: The construction of MI5 's Thames House and MI6 's Vauxhall Cross headquarters has been released, but the Al Yamamah report is still deemed too sensitive. The 2007 documentary film Welcome Aboard Toxic Airlines contained evidence that vital data was withheld from a 1999–2000 Australian Senate Inquiry into the health and flight safety issues relating to oil fumes on the British Aerospace 146 . The film also contains an Australian Senator's speech about money being paid by BAe for silence on

7215-452: The contribution of Airbus UK. After its creation, BAE Systems had a difficult relationship with the MoD. This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts". CEO Mike Turner said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken". These competition rules were introduced by Lord Levene during

7326-411: The defence electronics and naval shipbuilding subsidiary of the General Electric Company , in 1999 to form BAE Systems . The company has its origins in the Aircraft and Shipbuilding Industries Act 1977 , which called for the nationalisation and merger of the British Aircraft Corporation , Hawker Siddeley Aviation , Hawker Siddeley Dynamics and Scottish Aviation . On 29 April 1977, the new entity

7437-413: The end of the Second World War , Atlas was rebuilt. The shipbuilding division and other business areas were sold off, shifting the focus solely to marine and defence electronics. Starting in the 1960s, the company switched ownership several times, including several years spent as subsidiary of Friedrich Krupp AG (after 1965) and Bremer Vulkan (1991). In 1992, Atlas merged with STN Systemtechnik Nord ,

7548-444: The final four aircraft being delivered in late 2003; a total of 173 Avro RJ aircraft was delivered between 1993 and 2003. BAe developed several advanced models of the Harrier family. In 1978, the Royal Navy received the first BAe Sea Harrier of an initial order for 24. The Sea Harrier was declared operational three years later, being initially embarked on both the first Invincible class aircraft carrier HMS Invincible , and

7659-439: The first production contract for the Eurofighter was signed between Eurofighter GmbH, engine manufacturer Eurojet and the NATO Eurofighter and Tornado Management Agency , the organisation set up to manage the procurement of the aircraft. On 26 September 1985, the UK and Saudi Arabian governments signed the Al-Yamamah arms deal with BAe as prime contractor. The contracts, extended in the 1990s and never fully detailed, involved

7770-476: The former Armor Holdings business following the loss of the Family of Medium Tactical Vehicles contract in 2009. It was outbid by Oshkosh Corporation for the £2.3 billion ($ 3.7 billion) contract. Land and Armaments had been the "star performer" of BAE Systems' subsidiaries, growing from sales of £482 million in 2004 to £6.7 billion in 2009. BAE Systems inherited British Aerospace's 35% share of Saab AB , with which it produced and marketed

7881-416: The former Prime Minister's son Mark Thatcher may have been involved; he has strongly denied receiving payments or exploiting his mother's connections in his business dealings. The National Audit Office investigated the contracts and has so far never released its conclusions – the only NAO report ever to be withheld. The BBC's Newsnight observed that it is ironic that the once classified report analysing

7992-400: The global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring. BAE Systems inherited British Aerospace's share of Airbus Industrie, which consisted of two factories at Broughton and Filton . These facilities manufactured wings for the Airbus family of aircraft. In 2001 Airbus was incorporated as Airbus SAS,

8103-562: The government announced that it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances". BAE Systems inherited the UK government-owned "golden" share that was established when British Aerospace was privatised. This unique share prevents amendments of certain parts of the company's Articles of Association without the permission of the Secretary of State. These Articles require that no foreign person or persons acting together may hold more than 15% of

8214-442: The late 1990s, European defence consolidation became a prevailing practice; European governments wished to see the merger of their defence manufacturers into a single entity, a European Aerospace and Defence Company. This ambition led to numerous reports linking various European defence groups – mainly with each other but also with American defence contractors. In July 1998, merger discussions began between BAe and DASA. Terms for such

8325-418: The latter to Finmeccanica for €400 million (approx. £270 million c. 2007) in March 2007. In May 2004, it was reported that the company was considering selling its shipbuilding divisions, BAE Systems Naval Ships and BAE Systems Submarines . It was understood that General Dynamics wished to acquire the submarine building facilities at Barrow-in-Furness , while VT Group was said to be interested in

8436-572: The launch of the Experimental Aircraft Programme (EAP) to develop and fly an advanced fighter technology demonstrator was announced; at this point, the effort was intended to be a partnership between Britain and several of its European neighbours, including West Germany and Italy. The resulting aircraft, the British Aerospace EAP , ended up being primarily developed by BAe as a private venture; it formed

8547-513: The list of Top 100 suppliers to the MoD received contracts totalling £3.98 billion, with total revenue being higher when other subsidiary income is included. In comparison, the second largest supplier is Babcock International Group and its subsidiaries, with a revenue of £1.1 billion from the MoD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3 billion and paid £2.6 billion in taxes. These figures exclude

8658-669: The loss of 940 jobs, and a further 835 jobs would be lost at Filton, near Bristol, and at the shipyards in Govan, Rosyth, and Scotstoun in Scotland. On 9 October 2014, the company announced the loss of 440 management jobs across the country, with 286 of the job cuts in Lancashire. In July 2014 it announced the acquisition of US intelligence company Signal Innovations Group Inc. to augment imagery and data analysis technologies in its Intelligence & Security business. In August 2014, BAE

8769-515: The lucrative defence market of the United States. The newly combined company, which was initially referred to as "New British Aerospace", was officially formed on 30 November 1999; it is named BAE Systems . There have been allegations that the Al Yamamah contracts were a result of bribes ("douceurs") to members of the Saudi royal family and government officials. Some allegations suggested that

8880-494: The manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES's largest customer. In contrast, DASA's response to the breakdown of the merger discussion was to merge with Aérospatiale to create the European Aeronautic Defence and Space Company ( EADS ), a horizontal integration . Seventeen undertakings were given by BAE Systems to

8991-424: The most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the Comet , the world's first commercial jet airliner; the Harrier "jump jet", the world's first operational vertical/short take-off and landing (VTOL) aircraft; the "groundbreaking" Blue Vixen radar carried by Sea Harrier FA2s and which formed the basis of the Eurofighter's CAPTOR radar; and co-produced

9102-542: The older HMS Hermes . Following their decisive role in the 1982 Falklands War , several of the lessons learnt from the conflict shaped a new upgrade programme for the fleet authorised in 1984, resulting in the Sea Harrier FRS.2 (later known as FA2 ). The first flight of the prototype took place in September 1988 and a contract was signed for 29 upgraded aircraft in December of that year. The Sea Harrier FA2

9213-774: The origin of its modern-day name. During the First World War , Atlas Werke built U-boats for the Imperial German Navy . After the war, the company shrank in size and began to focus on civilian technology, due to restrictions imposed by the Treaty of Versailles . Following the Nazi seizure of power , the company grew to become an arms supplier for the Kriegsmarine . Atlas manufactured torpedoes, minesweepers and Enigma machines , among other things. After

9324-444: The other major European aerospace company, but only after its privatisation. The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace, DASA, Aérospatiale and Construcciones Aeronáuticas SA into an integrated company; with this aim British Aerospace and DASA were united against the various objections of Aérospatiale. As well as Airbus, British Aerospace and DASA were partners in

9435-668: The partnership was to learn about the high speed build and operations processes of McLaren. The company announced the acquisition of Tenix Defence , a major Australian defence contractor in January 2008. The purchase was completed on 27 June for A$ 775 million (£373 million) making BAE Systems Australia that country's largest defence contractor. The MoD awarded BAE Systems a 15-year munitions contract in August 2008 worth up to £3 billion, known as Munition Acquisition Supply Solution (MASS). The contract guaranteed supply of 80% of

9546-541: The publication of the DIS BAE Systems CEO Mike Turner said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the UK". Lord Levene said in the balance between value for money or maintaining a viable industrial base the DIS "tries as well as it can to steer a middle course and to achieve as much as it can in both directions. ...We will never have

9657-559: The purchase of the marine support company Atlantic Marine for $ 352 million. In September 2010 BAE Systems announced plans to sell the Platform Solutions division of BAE Systems Inc., which the Financial Times estimated could yield as much as £1.3 billion. Despite "considerable expressions of interest", the sale was abandoned in January 2011. The purchases of Queen Elizabeth -class aircraft carriers ,

9768-578: The rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe." When Dick Olver was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed

9879-440: The recession in the airline industry." In mid-1992, BAe wrote off £1 billion of assets, largely as part of redundancies and restructuring of its regional aircraft division. This was the largest asset write-off in UK corporate history. General Electric Company (GEC), later to sell its defence interests to BAe, came close to acquiring BAe at this time. BAe cut 47% of its workforce (60,000 out of 127,000), 40,000 of which were from

9990-482: The regional aircraft division. Evans decided to sell non-core business activities, which included the Rover Group, Arlington Securities, BAe Corporate Jets, BAe Communications and Ballast Nedam . Although the rationale of diversification was sound (to shield the company from cyclical aerospace and defence markets) the struggling company could not afford to continue the position: "We simply could not afford to carry two core businesses, cars and aerospace. At one point Rover

10101-519: The remaining yards on the Clyde . Instead, in 2008 BAE Systems merged its Surface Fleet arm with the shipbuilding operations of VT Group to form BVT Surface Fleet , an aim central to the British Government's Defence Industrial Strategy . On 4 June 2004, BAE Systems outbid General Dynamics for Alvis Vickers , the UK's main manufacturer of armoured vehicles. Alvis Vickers was merged with

10212-562: The resulting organisation. On 10 October 2012, the companies said the merger talks had been called off. The Guardian reported that this was due to the German Government's concern about the "potential size of the French shareholding in the combined company, as well as disagreements over the location of the group's headquarters". In November 2013, BAE Systems announced that shipbuilding would cease in Portsmouth in 2014 with

10323-493: The sale of its German naval systems subsidiary, Atlas Elektronik, to ThyssenKrupp and EADS. The Financial Times described the sale as "cut price" because French company Thales bid €300 million, but was blocked from purchasing Atlas by the German government on national security grounds. On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to Spirit AeroSystems, Inc. , having said as early as 2002 that it wished to dispose of what it did not regard as

10434-515: The slow pace of informal negotiations, BAE Systems exercised its put option which saw investment bank Rothschild appointed to give an independent valuation. Six days after this process began, Airbus announced delays to the A380 with significant effects on the value of Airbus shares. On 2 June 2006 Rothschild valued the company's share at £1.87 billion, well below its own analysts' and even EADS's expectations. The BAE Systems board recommended that

10545-455: The supply of Panavia Tornado strike and air defence aircraft, BAe Hawk trainer jets, Rapier missile systems, infrastructure works and naval vessels. The Al Yamamah deals are valued at anything up to £20 billion and still continue to provide a large percentage of BAE Systems' profits. BAe acquired Royal Ordnance , the British armaments manufacturer, for £190 million on 22 April 1987. The German armaments specialist Heckler & Koch

10656-399: The support and engineering activities of the business. In September 2011, BAE Systems began consultation with unions and workers over plans to cut nearly 3,000 jobs, mostly in the company's military aircraft division. In its 2012 half-year report, the company revealed a 10% decline in revenue in the six months up to 30 June due to falling demand for armaments. In May 2012 the governments of

10767-449: The two companies. However the difficulties of integrating the companies in this way led to a re-evaluation of the proposal; BAE Systems' 2004 Annual Report states that "recognising the complexity of the earlier proposed Eurosystems transaction with Finmeccanica we have moved to a simpler model". The main part of this deal was the dissolution of AMS and the establishment of SELEX Sensors and Airborne Systems ; BAE Systems sold its 25% share of

10878-526: The world's first battlecruiser ; and Vickers Shipbuilding and Engineering , builder of the Royal Navy's first submarines . Since its 1999 formation, BAE Systems has made a number of acquisitions, most notably of United Defense and Armor Holdings of the United States, and has sold its shares in Airbus , Astrium , AMS and Atlas Elektronik . It is involved in several major defence projects, including

10989-436: The world's most important defence contractors . GEC's major defence related acquisitions included Associated Electrical Industries in 1967, Yarrow Shipbuilders in 1985, Plessey companies in 1989, parts of Ferranti 's defence business in 1990, the rump of Ferranti when it went into receivership in 1993/1994, Vickers Shipbuilding and Engineering in 1995 and Kværner Govan in 1999. In June 1998, MES acquired Tracor ,

11100-399: Was "day one" for the new company, which became the world's second-largest aerospace company after Boeing and the second-largest European arms manufacturer after BAE Systems. The GEC merger to create a solely British company, compared to the prospective Anglo-German company that would have resulted from merging with DASA, was promoted as having superior prospects for further penetration of

11211-491: Was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, The Independent said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations." When GEC put MES up for sale on 22 December 1998, British Aerospace abandoned

11322-642: Was awarded a £248 million contract from the British government to build three new offshore patrol vessels . In October 2014, BAE Systems won a £600 million contract from the MoD to maintain Portsmouth naval base for five years. During 2014 BAE Systems acquired US-based cybersecurity firm Silversky for $ 232.5 million. During Prime Minister Theresa May 's visit to Turkey in January 2017, BAE and TAI officials signed an agreement, worth about £100 million, for BAE to provide assistance in developing

11433-579: Was eating up about £2 billion of our banking capacity." BAe Corporate Jets and Arkansas Aerospace were sold to Raytheon in 1993. In 1994, the Rover Group was sold to BMW and British Aerospace Space Systems was sold to Matra Marconi Space . In 1998, BAe's shareholding of Orange plc was reduced to 5%. The Orange shareholding was a legacy of the 30% stake in Hutchison Telecommunications (UK) Ltd. In 1994, BAeSEMA, Siemens Plessey and GEC-Marconi formed UKAMS Limited as part of

11544-501: Was expected to cover "all the costs of completion of the current contract". The troubled Nimrod project would ultimately be cancelled as part of the 2010 Strategic Defence and Security Review (SDSR). The UK government, following a cabinet row described as "one of the most bitter Cabinet disputes over defence contracts since the Westland helicopter affair in 1985", ordered 20 BAE Hawk trainer aircraft with 24 options in July 2003 in

11655-622: Was fitted with the Blue Vixen radar, which was described as one of the most advanced pulse doppler radar systems in the world. In August 1981, BAe and the American aircraft manufacturer McDonnell Douglas signed a memorandum of understanding regarding the McDonnell Douglas AV-8B Harrier II . Under this agreement, BAe was effectively a subcontractor rather than a full partner, receiving 40 per cent of

11766-513: Was folded into this division after BAe acquired it four years later. In 1988, BAe purchased the Rover Group from the British government of Margaret Thatcher for £150 million. The sale was controversial due to opaque financial arrangements between the government and BAe; however the House of Commons Trade and Industry Committee was said to believe that "in spite of a catalogue of complaints,

11877-569: Was formed in the United Kingdom as a statutory corporation. Under the provisions of the British Aerospace Act 1980 (c. 26), on 1 January the statutory corporation was transferred to a limited company, which then re-registered as a public limited company (plc), under the name "British Aerospace Public Limited Company", on 2 January 1981. BAe was privatised in two main phases, the first in February 1981, involving 51.6% shares of

11988-417: Was in takeover discussions with TRW , an American aerospace, automotive and defence business. This was prompted by Northrop Grumman 's £4.1 billion (approx. US$ 6 billion c. 2002) hostile bid for TRW in February 2002. A bidding war between BAE Systems, Northrop and General Dynamics ended on 1 June when Northrop's increased bid of £5.1 billion was accepted. On 11 December 2002, BAE Systems issued

12099-456: Was signed. It was developed and produced via a multinational company, Panavia Aircraft GmbH , of which BAe was one of several companies to be heavily involved. On 10 July 1979, the maiden flight of a production Tornado occurred. On 5 and 6 June 1979, the first aircraft were delivered to the RAF and German Air Force respectively. On 25 September 1981, the first Italian Tornado was delivered. The Tornado would be produced in large numbers,

12210-602: Was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA. Schrempp was angered by BAe's reversal, and opted to pursue other partner companies for DASA to merge with. On 11 June 1999, the Spanish aircraft company CASA a memorandum of understanding for such a merger. On 14 October 1999, DASA agreed to merge with Aérospatiale-Matra to create the European Aeronautic Defence and Space Company (EADS). 10 July 2000

12321-405: Was the merger of BAE's share of Matra BAe Dynamics and the missile division of Alenia Marconi Systems (AMS) into MBDA in December. MBDA thus became the world's second largest missile manufacturer. Although EADS (now Airbus SE ) was later reported to be interested in acquiring full control of MBDA, BAE said that, unlike Airbus, MBDA is a "core business". In June 2002, BAE Systems confirmed it

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