Hopes Sale Will Offset Losses From Other Divisions

Confirming earlier reports European Aeronautic Defense and Space Co. hopes to sell off its EADS Socata division, last week the European aerospace consortium entered into formal, exclusive talks with French manufacturing group DAHER for the acquisition of a majority interest in the general aviation planemaker.

"Bringing together DAHER and EADS Socata would allow the creation of a major actor in the area of aerostructures and business aviation and develop joint projects in these two areas," EADS said in a release Monday.

As ANN reported in April, DAHER has interests in the aerospace, nuclear and automotive industries. EADS Socata recently partnered with the French concern to bid for work on the upcoming Airbus A350 XWB.

EADS plans to sell Socata as part of its larger efforts to recoup massive losses brought about by delays to the Airbus A380 and A350 XWB programs, as well as from the continuing decline in value of the US dollar.

EADS Socata manufactures the TB20 Trinidad, and the highly-successful TBM 850 turboprop. The EADS Group includes Airbus, helicopter supplier Eurocopter and EADS Astrium, the European leader in space programmes from Ariane to Galileo. EADS is also the major partner in the Eurofighter consortium as well as a stakeholder in the missile systems provider MBDA.

FMI: www.socata.eads.net