Do not think for one moment that now that EADs own BAEs stake in Airbus that they will not try and screw as much money out of the British Government as possible. Airbus want to stay competative but will always be subject mainly to German and especially Frence protectionist policies.
The only jobs that will go will be in the UK and the wings etc, etc will end up being made in eastern Euriope.
Our workers are easy to sack and no longer competative so to employ people in the UK anymore in manufacturing has little or no advantage.
As far as BAE Systems is concerned I am just wondering if they are now going to be the next takeover target.
There is the obvious view in the forum that business margins are higher on militry projects and service contracts than for Civil projects. Well that may be true for now but despite the war on terror the USA is also feeling the pinch in Military spending and baulk at the costs of some projects.
In reality I think military spending in real terms is in terminal decline. Civil aviation may have cyclical ups and downs over every ten years but in the long run it has always been on the up.
When the military spending dries up over the next 15 to 20 years and the service contracts die with it I am sure EADs will be there but BAE Systems will not – in any shape or form.
Personaly, companies like RR Aeros I think have much more sense in their startegy. They are virtually in every aero engine field be they military or civil and have service contracts in both as well. To me this makes a company like RR Aeros more secure in the long term as each business stream balances out the highs and lows against each other.
Sure Airbus do have a very big problem with some of their planes but so long as EADs have money coming in from elsewhere, Airbus will survive and the profits will come in in the long term.
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