EADS in EUR 3 billion Ariane-5 rocket deal

10th May 2004, Comments 0 comments

PARIS, May 10 (AFP) - The European Aeronautic Defence and Space Company is set to win a contract worth EUR 3 billion (USD 3.6 billion) with Arianespace for 30 Ariane-5 rockets, an EADS spokesman said Monday.

PARIS, May 10 (AFP) - The European Aeronautic Defence and Space Company is set to win a contract worth EUR 3 billion (USD 3.6 billion) with Arianespace for 30 Ariane-5 rockets, an EADS spokesman said Monday.

The contract is to be signed later Monday in the presence of German Chancellor Gerhard Schroeder at the ILA air show near Berlin, he said.EADS holds a stake of about 20 percent in Arianespace, which operates and markets the Ariane line of rockets used to launch satellites.

"Thirty launchers, which comes to about EUR 3 billion, is in an order placed by Arianespace with EADS," Francois Augue, chief executive at EADS Space, told the LCI radio network.

EADS Space will become the sole provider of the new generation Ariane-5 launcher, while Airanespace will retain its commercial responsibilities.The arrangement is predicted to reduce the production cost of the launchers by 30-35 percent compared with Ariane-4, the last of which was sent aloft in February 2003.

Meeting in Paris in May of that year, ministers from the 15-member European Space Agency backed a EUR 228 million programme to finance the Ariane-5.EADS Space sustained a loss of EUR 400 million in 2003, after EUR 268 million in 2002, because of a restructuring charge of EUR 288 million.

The shortfall at the subsidiary is expected to be absorbed this year, after which the unit is predicted to return to profit.

© AFP

Subject: French news

0 Comments To This Article