History of Airbus
| File:Airbus logo.svg Logo used since 2015 | |
| Company type | Societas Europaea |
|---|---|
| Industry | Aerospace, defence |
| Predecessor | Airbus Industrie GIE |
| Founded | 1970 (as Airbus Industrie GIE) |
| Headquarters | Leiden , Netherlands |
Area served | Worldwide |
Key people | Guillaume Faury (CEO) |
| Products | Commercial aircraft, helicopters, defence and space products |
| Owner | Public company |
| Parent | None (holding company for Airbus SAS, Airbus Defence and Space, Airbus Helicopters) |
| Website | www |
Today's Airbus is the outcome of a long history of consolidation within Europe's aerospace sector, predating the 1970 creation of the Airbus Industrie GIE consortium. In 2000, the European Aeronautic Defence and Space Company (EADS) NV was established through the merger of France's Aerospatiale-Matra and Germany's DASA, later incorporating Spain's Construcciones Aeronauticas. EADS held full ownership of Eurocopter SA (now Airbus Helicopters) and controlled 80% of Airbus Industrie GIE. The year 2001 saw Airbus Industrie GIE transform into Airbus SAS, a streamlined joint-stock entity. By 2006, EADS had acquired the remaining 20% stake in Airbus Industrie from BAE Systems. The company underwent rebranding to Airbus Group NV in 2014 and subsequently to Airbus SE in 2015. Although plans existed to merge Airbus SAS into the parent company in 2017, this was never finalized due to the commercial aircraft division’s prominence within Airbus SE. Presently, Airbus SE serves as the holding entity for Airbus SAS (commercial aircraft), alongside Airbus Defence and Space and Airbus Helicopters.
1970–2000: Airbus Industrie GIE
The origin of Airbus Industrie lies in a consortium formed by European aerospace companies aiming to rival American manufacturers such as Boeing, McDonnell Douglas, and Lockheed. Despite notable European technological advances, production volumes remained modest compared to their U.S. counterparts, who benefited from factors like a vast domestic market and a robust post-WWII aerospace foundation.
By the mid-1960s, European manufacturers acknowledged that cooperation was key to developing a competitive airliner. During the 1965 Paris Air Show, leading European airlines outlined specifications for an "Airbus" designed to transport over 100 passengers on short- to medium-haul routes efficiently and affordably. Hawker Siddeley collaborated with French firms Breguet and Nord to explore designs; their HBN 100 concept influenced future developments. By 1966, participants comprised France’s Sud Aviation (later Aérospatiale), West Germany’s Arbeitsgemeinschaft Airbus (which became Deutsche Airbus), and the UK’s Hawker Siddeley. A formal funding proposal was submitted to governments in October 1966; by July 1967, France, West Germany, and the UK consented to proceed.
Despite initial reservations—France was concerned about simultaneous funding commitments for Concorde and Dassault Mercure, while Britain doubted profitable returns—the program advanced following government negotiations. The UK withdrew in April 1969 over sales apprehensions, enabling West Germany to elevate its shareholding to 50%. Hawker Siddeley remained involved as a privileged subcontractor with significant investment backed by a West German loan.
On 18 December 1970, Airbus Industrie was officially founded as a Groupement d'Intérêt Économique (GIE) by France, West Germany, and the UK. The founding shareholders were Aérospatiale (France) and Deutsche Airbus (West Germany), each holding equal stakes of 50%. The term "Airbus" denoted a commercial aircraft size category that was widely understandable across languages. Production responsibilities were allocated as follows: Aérospatiale and Deutsche Airbus each held 36.5%, Hawker Siddeley owned 20%, and Dutch firm Fokker-VFW had a 7% share. In 1971, Spanish company CASA joined as a stakeholder with a 4.2% interest; British Aerospace acquired Hawker Siddeley's portion in 1979, leading to adjusted ownership distributions.
The consortium's initial project was the Airbus A300—a twin-engine airliner originally designed for approximately 320 passengers but later revised into the smaller A300B variant seating around 250 using existing engines to control costs. Roger Béteille directed technical efforts and organized partner responsibilities: France manufactured cockpit and lower fuselage sections; Hawker Siddeley contributed wings; West Germany produced forward and rear fuselage components; the Netherlands handled flaps and spoilers; Spain supplied horizontal tailplanes. Rolls-Royce engines powered the aircraft.
Although early market acceptance was limited, the A300 conducted its first flight in 1972 and entered service by 1974. Its launch coincided with that of Concorde, which overshadowed it commercially at first. Initial sales progressed slowly but picked up under CEO Bernard Lathière’s focused marketing toward American and Asian carriers. By 1979, orders had accumulated to 256 units.
Building on the A300’s achievements, Airbus introduced the more sophisticated A310 in 1978 followed by the highly successful A320 family in 1987—garnering over 400 orders before its maiden flight—and cementing Airbus’s position as a formidable global competitor.
2000–2014: European Aeronautic Defence and Space Company NV
During the late 1990s, European governments pursued the consolidation of their defence manufacturers into a unified aerospace and defence corporation. The German firm DaimlerChrysler Aerospace (DASA) and British British Aerospace aimed to establish a cross-border aerospace group, anticipating the integration of the French company Aérospatiale following its privatisation. Early efforts concentrated on restructuring Airbus from a consortium format into a fully integrated enterprise, with BAe and DASA collaborating on projects such as the Panavia Tornado and Eurofighter Typhoon.
Discussions about merging British Aerospace and DASA started in July 1998, coinciding with the merger of Aérospatiale and Matra. An agreement reached in December 1998 between BAe Chairman Richard Evans and DASA CEO Jürgen Schrempp was overtaken by British Aerospace’s acquisition of Marconi Electronic Systems (MES) in 1999, which resulted in the creation of BAE Systems. That same year, DASA combined forces with Spanish manufacturer Construcciones Aeronáuticas, then merged with Aérospatiale-Matra in 2000 to form the European Aeronautic Defence and Space Company (EADS), establishing itself as the world’s second-largest aerospace firm after Boeing.
In January 2001, Airbus Industrie transitioned from a consortium to a joint-stock company named Airbus SAS, with EADS owning 80% and BAE holding 20%. EADS consolidated its missile operations alongside BAE Systems and Alenia Marconi Systems to form MBDA, ranking as the second-largest missile manufacturer globally. By 2003, EADS purchased BAE’s 25% share in satellite manufacturer Astrium, subsequently rebranding it as EADS Astrium.
In 2003, EADS explored partnerships with Japanese companies to develop a hypersonic airliner envisioned as a successor to Concorde. Although initially denied, BAE declared in April 2006 its plan to divest its 20% Airbus stake, then valued at £2.4 billion. After delays in the A380 program caused Rothschild to lower its valuation to £1.87 billion, BAE shareholders approved the sale in October 2006, making EADS the sole owner of Airbus.
Russia’s state-controlled VTB acquired a 5% stake in EADS in September 2006; by 2013, this holding had diminished to less than 3% following subsequent sales. In March 2007, EADS Defence secured a £200 million contract for UK IT infrastructure under the FiReControl project.
The introduction of the Airbus A330 (1994) and A340 (1993) marked Airbus’s move beyond its original consortium model, which had led to inefficiencies due to partner companies maintaining production assets while jointly overseeing development.
In the late 1980s, Airbus embarked on developing an ultra-high-capacity airliner (UHCA), initially announced as the A3XX project in 1990. This design eventually evolved into the double-deck Airbus A380, targeting operating costs that were 15–20% lower than those of Boeing’s 747-400. The first flight of the A380 occurred in April 2005; despite software incompatibilities causing delivery delays in 2006 that required expensive redesigns, the aircraft entered service with Singapore Airlines in October 2007. Emirates and Qantas followed with deliveries during 2008.
As part of its global expansion strategy, Airbus opened an engineering center in Russia in 2003; by 2011, approximately 200 engineers were employed there contributing significantly to key programs such as the A320neo and A350 XWB.
BAE’s decision to sell its Airbus shares was partly driven by a strategic intent to align more closely with U.S. partners. The divestment process was complicated by delayed deliveries of the A380 and resulting share price fluctuations, which led to resignations among executives at both EADS and Airbus during mid-2006.
Following BAE’s exit, Airbus CEO Christian Streiff resigned amid disagreements over company autonomy; EADS co-CEO Louis Gallois took over leadership and launched restructuring initiatives known as "Power^8" announced in February 2007. These plans included cutting approximately 10,000 jobs across Europe and divesting several manufacturing sites—actions that triggered threats of union strikes.
At the 2011 Paris Air Show, Airbus achieved record civil aircraft orders valued at $72.2 billion for 730 planes, highlighted by strong demand for its fuel-efficient A320neo model.
In defence contracting, EADS partnered with Northrop Grumman on a $35 billion bid for the KC-45 aerial refueling tanker contract for the U.S. Air Force based on the Airbus A330 platform; however, Boeing successfully challenged this award leading Northrop Grumman to withdraw their bid in 2010 before EADS resumed competition independently.
EADS reported losses amounting to €763 million in 2009 primarily due to cost overruns on the troubled Airbus A400M military transport project along with charges related to the A380 program.
In September 2012, discussions emerged about a potential €35 billion ($45 billion) merger between BAE Systems and EADS that would have resulted in shareholders owning approximately 40% (BAE) and 60% (EADS). Nevertheless, shareholder apprehensions prompted reconsideration and ultimately led to abandonment of these merger plans by October 2012.
2014–2015: Airbus Group NV
In January 2014, EADS underwent restructuring to become Airbus Group NV, organized into three main sectors: Airbus, Airbus Defence and Space, and Airbus Helicopters. On 27 May 2015, the company transitioned from a Naamloze vennootschap (public limited company) to a Societas Europaea (SE). By September 2016, Airbus Group announced plans to merge with its largest division, Airbus SAS, creating a single entity under the unified Airbus brand starting 1 January 2017. This reorganization integrated Airbus Helicopters and Airbus Defence and Space as operational divisions within the consolidated company. During the 2017 annual general meeting on 12 April, Airbus Group SE officially adopted the new legal name Airbus SE.
2015–2017: Airbus Group SE
In 2015, Airbus Group launched a research and development hub along with a venture capital fund in Silicon Valley aimed at cultivating innovation beyond its traditional business areas. CEO Fabrice Bregier stressed the importance of welcoming external innovations despite Airbus’s existing technological strengths. Meanwhile, CEO Tom Enders underscored the necessity of fostering experimental environments to remain competitive against internet-based companies.
By January 2016, the Silicon Valley venture fund was fully operational. That same month, Airbus reached a preliminary agreement with Iran to supply 118 aircraft as part of a civil aviation cooperation deal aligned with the Joint Comprehensive Plan of Action (JCPOA). Boeing also proposed selling up to 80 jets to Iran Air in a transaction valued at approximately $17.6 billion.
However, in July 2016, the US House of Representatives approved amendments restricting Treasury Department funds from issuing export licenses for passenger planes destined for Iran. Boeing contended that if its transaction was blocked, similar restrictions should apply to competitors like Airbus; Airbus acknowledged that US government approval was necessary due to American components integrated into its aircraft.
Despite these challenges, the Iran Air-Airbus agreement proceeded, with the initial A321 delivered to Tehran’s Mehr Abad Airport on 12 January 2017. Airbus confirmed adherence to both JCPOA requirements and licenses issued by the US Office of Foreign Assets Control.
2017–present
On 30 June 2017, Airbus restructured its leadership framework by having airliner sales report directly to CEO Tom Enders, effectively bypassing Fabrice Bregier, who assumed responsibility for programs, support services, engineering, manufacturing, procurement, and quality assurance. Enders concentrated his efforts on sales and marketing initiatives.
On 16 October of the same year, Airbus acquired a controlling interest of 50.01% in Bombardier Aerospace’s CSeries program, targeting a market demand exceeding 6,000 new aircraft in the 100-150 seat category over two decades. Utilizing its extensive supply chain expertise, Airbus aimed to reduce production costs while maintaining headquarters and assembly operations in Québec. Additionally, a second Final Assembly Line was established in Mobile, Alabama to cater specifically to US customers.
Towards the end of 2017, inquiries into historical sales practices raised concerns about potential corruption and management’s handling of these issues, impacting leadership stability. Sales chief John Leahy planned retirement by year-end 2017 with deputy Kiran Rao expected to succeed him; however, Rao withdrew shortly before assuming the role amid ongoing bribery investigations. Consequently, Enders took direct responsibility for ensuring compliance within sales operations. In January 2018, Eric Schulz, formerly president of Rolls-Royce Civil Aerospace, succeeded Leahy as Chief Commercial Officer.
In November 2017, Chief Technology Officer Paul Eremenko resigned after two years amid controversy surrounding workforce reductions at a French research center. Concurrently, Airbus announced a collaboration with Rolls-Royce and Siemens to develop the E-Fan X hybrid-electric demonstrator aircraft with plans for a first flight by 2020.
The board confirmed in December 2017 that Enders would not extend his CEO tenure beyond April 2019. In February 2018, Guillaume Faury, then CEO of Airbus Helicopters, was appointed successor to Bregier as head of programs. Several senior executives—including Bregier, Leahy, Eremenko, and engineering chief Charles Champion—either departed or announced retirements by the close of 2017.
For the year 2017, Airbus reported net orders totaling 1,109 from 44 customers and delivered 718 aircraft: including 558 units from the A320 Family (with 181 A320neo models), 67 A330s, 78 A350 XWBs, and 15 A380s.
Following Brexit developments, concerns arose regarding UK-based wing manufacturing facilities—employing over 15,000 staff across Broughton and Filton—but Enders reassured UK authorities about Airbus’s enduring commitment to British operations.
By early 2018, plans were announced to appoint a new CEO by year-end for shareholder confirmation in spring 2019; Faury emerged as the leading internal candidate. CFO Harald Wilhelm also declared his intention to depart concurrently with Enders.
In May 2018, the World Trade Organization ruled that Airbus had received improper subsidies related to the A350 and A380 programs; Airbus agreed to modify its launch aid arrangements accordingly.
September 2018 saw Chief Commercial Officer Eric Schulz resigning due to personal reasons; he was replaced by Christian Scherer—CEO of ATR since October 2016.
On 8 October 2018, Guillaume Faury was officially named as Airbus CEO effective April 2019. Subsequent executive appointments included Michael Schöllhorn as COO for Commercial Aircraft starting February 2019 and Dominik Asam assuming CFO duties from April that year.
Reports surfaced in December 2018 regarding an ongoing U.S. Department of Justice investigation into corruption allegations potentially resulting in multibillion-euro penalties.
February 2019 marked the introduction of The OneAtlas Platform—an advanced geospatial AI system designed to extract actionable insights from satellite imagery for commercial use cases.
In April 2024, Airbus declared that C. Jeffrey Knittel would retire as chairman and CEO of Airbus Americas on June 3; Robin Hayes—former CEO of JetBlue Airways—was appointed as his successor.
Competition with Boeing
Airbus has maintained a strong rivalry with Boeing in securing aircraft orders, capturing more than half of all orders since 2003. During 2003 and 2004, Airbus led in order volume and in 2005 achieved a total of 1,111 orders (1,055 net), surpassing Boeing’s 1,029 (1,002 net). Despite this, Boeing claimed 55% of the 2005 orders by monetary value and regained momentum in 2006. That year, Airbus posted its second-highest order tally ever with 824 aircraft. Airbus plans to boost A320 production to 40 units monthly by 2012, while Boeing aims to increase its 737 output from 31.5 to 35 planes per month.
As of April 2013, there were 7,264 Airbus aircraft actively flying. Although Airbus has led in new orders since 2003, Boeing’s fleet remains approximately 21% larger due to its earlier market presence starting in 1958 compared to Airbus’s launch in 1972. However, this difference is diminishing as older Boeing models are phased out.
Both companies offer extensive product lines across narrow-body and wide-body categories but typically avoid direct head-to-head competition by positioning their models at slightly different sizes. For instance, the A380 exceeds the size of the Boeing 747; the A350XWB competes with the upper-tier 787 and lower-tier 777; the A320 fits between the Boeing 737-700 and -800 variants; and the A321 fills the gap between the 737-900 and the discontinued 757-200. This strategic differentiation allows airlines a broader selection spanning roughly from 100 to 500 seats.
The Boeing 777 has outsold Airbus models such as the A340 family and A330-300, although recently the smaller A330-200 has outperformed Boeing’s 767. The A380 is designed to compete with the Boeing 747 in the very large aircraft segment despite delays that led some customers to consider switching to the Boeing 747–8. Responding to airline demand for a competitive alternative to Boeing’s 787 Dreamliner, Airbus developed the A350 XWB.
The A320neo series primarily rivals the Boeing 737 MAX, which was grounded globally in March 2019 following two fatal crashes. This situation allowed Airbus to leverage Boeing’s difficulties and secure substantial new orders.
Historical emblems
Logos used by Airbus Industrie GIE (1970–2000) and Airbus SAS (2001–2016), prior to its integration with parent company Airbus Group SE in 2017:
Logos representing European Aeronautic Defence and Space Company NV (2000–2014), Airbus Group NV (2014–2015), and Airbus Group SE (2015–2017):