BAE Systems loses out to EADS over Alenia partnership

Italian engineering giant Finmeccanica has chosen the European defence grouping EADS as a partner for its Alenia aerospace subsidiary.

Italian engineering giant Finmeccanica is set to announce today that it has chosen the European defence grouping EADS as a partner for its Alenia aerospace subsidiary.

The news will come as a rebuff to BAE Systems, the only other group bidding for the partnership deal, and adds further weight to the growing partnership of continental European aerospace and defence companies.EADS is still in the early stages of its formation, and involves the merger of Aerospatiale Matra of France, Germany’s DaimlerChrysler aerospace (DASA) and Spain’s Casa aerospace company.

The terms of the deal are expected to be announced today at a press conference in Paris, and are likely to offer Alenia a 50-50 share with EADS in a joint venture company for the manufacture of military jets and trainer aircraft, and a 5% stake in Airbus Industrie. This will give EADS an 80% stake in Airbus, leaving BAE Systems 20%.