Q: Why did EADS establish EADS North America?

A: The U.S. aerospace and defense market is, and will be for the foreseeable future, the largest in the world. As EADS is the world's second largest aerospace and defense company, we have products and capabilities that can best meet the needs of U.S. customers. EADS has made it a priority to further build its presence in the United States. The establishment of EADS North America is the means by which this commitment will be met.

Q: What is EADS' position in the U.S. market today?

A: EADS is already a key player in the U.S. market, and we're taking steps to further expand our presence. EADS has more than 2,000 direct employees in the U.S. across a spectrum of civil, military and space activities - contributing more than $6 billion a year to the U.S. economy, and indirectly supporting more than 100,000 jobs. Airbus aircraft remain highly popular in the U.S. market, while American Eurocopter holds a market-leading position in commercial and non-defense government markets. Our focus is to maintain these strong market positions, while building EADS' presence in the U.S.

Q: How does EADS North America plan to expand its defense business?

A: Our expansion is founded on a long-term strategy that involves organic growth, mergers and acquisitions, investment and partnerships. As we win new programs, we must also perform flawlessly, and through customer satisfaction, show that we are the provider of choice. We are actively identifying and assessing acquisition targets that would strengthen our position in the U.S. defense market while remaining aligned with EADS' current activities.

Q: What types of companies will you seek to acquire?

A: The optimal acquisition would have revenues in the $50-100 million range, strong financials and the ability to function as a stand-alone entity. Systems integration, defense electronics, defense services and training are good examples of areas where we could augment our U.S. capabilities through acquisition, and we are looking broadly at other opportunities to penetrate the U.S. defense market.

Q: How do EADS capabilities match the needs for U.S. military and homeland security markets?

A: Working in coordination with EADS divisions and business units, the goal of EADS North America is to identify where technologies and capabilities can most benefit U.S. customers. EADS has scored some important successes: helicopters from American Eurocopter are in daily operation with the U.S. Coast Guard, FBI and law enforcement agencies nationwide; EADS TELECOM North America has been selected to provide radios, modems and terminals to improve the U.S. Army NTC's communications capabilities; and the EADS CASA CN-235 aircraft has been selected for the Coast Guard's Deepwater program. For the future, we will build on our strength as the leading producer of helicopters worldwide; we will pursue opportunities for the Airbus A330 as military in-flight refueling aircraft and for the CN-295 in military transport and support missions. We also are pursuing direct-sale opportunities in niche markets for the Hellas obstacle warning system and miniature synthetic aperture radar.

Q: Does EADS North America's responsibilities include providing opportunities for U.S. companies to work on European programs in which EADS is involved?

A: Most definitely. Most recently, EADS and Northrop Grumman teamed to demonstrate in Germany the capabilities of an EADS sensor aboard a Global Hawk aircraft. It was the first time a fully autonomous unmanned aircraft has flown in European air space. It is our hope that this cooperation will lead to EADS and Northrop Grumman to become the supplier of choice for high altitude long endurance systems in Europe.

A different example is the recent initiative by EADS North America to open the Airbus A400M multi-role military transport aircraft program to competitive-based participation by U.S. suppliers. With the A400M's total sales potential estimated at nearly 400 transports during the next 20 years, this creates significant new transatlantic business opportunities for American hardware and equipment manufacturers, as well as systems suppliers.

Q: What's the future for Transatlantic Cooperation?

A: Transatlantic defense cooperation will remain one of the foundations of U.S. defense and national security policy. At the policy level, we cannot deny that the transatlantic community provides the foundation for international security and stability. Those who focus myopically on the current issues surrounding the Iraqi conflict overlook the fact that since the fall of the Berlin Wall, the U.S. has engaged in four conflicts - three of those four have been as part of solid transatlantic coalitions.

At the defense industrial level, the practical fact is that the transformation in military capabilities ongoing today requires that we cooperate. The revolution resulting from advances in network centric capabilities really says that forces that don't have common or compatible systems won't be able to operate in the future. Recognizing this, EADS is playing a leading role in the development and execution of network centric programs such as Euro Hawk with Northrop Grumman, MEADS with Lockheed Martin, and Alliance Ground Surveillance with a consortium of U.S. and European partners.