Organisation: BAE Systems

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Analysis and commentary by Echo Research.

There's nothing like a good jobs scare to make the headlines, as BAE Systems found out last week when it announced it was selling its 20% stake in Airbus. " Jobs fears in Airbus sale" (Sun, 7/4), " Jobs fears over Airbus"(Sky News, 7/4), " Job fears as BAE confirm sale talks" (Daily Mail, 7/4) ran the unanimous headlines, despite some recognition that BAE, Airbus UK and the Government had " gone out of their way to allay such fears" (Daily Telegraph, 8/4). Little mention was made of the legally binding safeguard mechanism requiring Airbus wing production, and thus the jobs, to remain in the UK indefinitely.

Beyond the knee-jerk response was analysis of BAE's decision, the decline of British manufacturing industry and global competition, with scathing criticism from predictable sections of the press: " strategically stupid, technologically vapid and deeply depressing" commented The Observer's Will Hutton (9/4) .Elsewhere, opinion was more positive : "BAE is cleverly bailing out before rising research and development costs … hit" (Sunday Telegraph, 9/4 ). "BAE knows how to fly and it's not with Airbus" (The Independent, 9/4). While it may have flown into a " political firestorm" (Guardian, 8/4) with its Airbus stake sale, there may be clearer skies ahead for Britain's main aerospace and defence company.