EADS Socata Reports Continued Growth

EADS Socata, Europe’s leading general aviation manufacturer, today posted record sales for 2003 with total billings of $104,350,000, showing significant growth compared to its 2002 results of $101,235,000. This continued growth was in the context of a decline in the overall general aviation industry of 9.3% shipments and 24.4% billings. Sales of the market-leading TBM 700 single-engined turboprop represented the majority of revenues in 2003. 80% of deliveries were to the US following the introduction of the TBM 700 C2 in March of 2003. The TBM 700 C2 offers a significantly increased useful load with respect to earlier models, carrying six people over 1,100 NM in unprecedented comfort at cruise speeds of up to 300 KTAS.

“We are particularly gratified to see increased sales of the TBM700 especially against the backdrop of a slowdown in the overall turboprop market in 2003,” said Stéphane Mayer, President & CEO of EADS Socata. The TBM continues to increase its share of the business turboprop market and has the highest percentage of repeat buyers in its sector. In 2003, almost 25% of the 34 units were sold to repeat buyers, which is the best possible testimonial for any manufacturer.


In addition, the pre-owned market for TBM700 remains resilient, with less than 10% of the TBM 700 fleet for sale at any one time. TBM 700s typically spend fewer days on the market than competitor aircraft and sell for a higher percentage of their original value.

2004 should bring a new record for production of the TBM 700, since our order book already covers almost two thirds of the current planned production. In addition, new features such as RVSM will further increase the attractiveness of the aircraft,” said Stéphane Bernard, President & CEO of Socata Aircraft, the US arm of EADS Socata,.

Sales of the piston-engine TB GT family (Trinidad, Tobago and Tampico) declined over 2002 due in part to the overall slowdown in the market, as well as to an unfavorable US dollar exchange rate against the Euro which made the TB family less competitive in the US market.

“We remain committed to the TB GT product line,” commented Stéphane Mayer “As the general aviation market improves during 2004 we expect to see TB sales return to previous levels. We believe that the family’s style, performance and outstanding safety record, coupled with the availability of features like TKS-based ‘weeping wing’ ice protection and high capacity air-conditioning, will continue to be strong factors in its success.”

The TBM 700C, certified on March 7 2003, is a direct result of EADS Socata’s philosophy of continued product development to meet changing customer needs. Amongst other enhancements, the TBM 700C has reinforced central spar and wing attachments to permit a significant increase in the aircraft’s useful load.

Two versions of the TBM 700C are available, the C1 aimed at the European market with a 6,613 lbs. (3 tons) maximum ramp weight, and the C2 designed for the US market with a maximum weight of 7,428 lbs. (3.5 tons).

In addition to the structural changes, TBM 700C models will benefit from all of the latest comfort and avionics upgrades to the TBM

As of January 1st, 2004, 261 TBM 700s have been delivered worldwide, including 178 to North America, 72 to Europe (including 20 to the French Air Force and eight to French Army Aviation), with the remainder being delivered mostly in the Asia–Pacific area. The TBM 700 family has so far accumulated more than 325,000 flight hours.

EADS Socata is one of the first aircraft manufacturers to offer as standard, a mode S transponder meeting the requirements of Eurocontrol, the European air traffic agency. Mode S transponders will become mandatory in European airspace for all aircraft with a cruising speed above 250 knots after 2005 and will allow better identification of aircraft by air traffic control as well as enable future flight data exchange with ATC ground stations.

EADS Socata has completed a flight test program of a Reduced Vertical Separation Minimum (RVSM) compliant equipment solution for the TBM 700. Based on the new Honeywell AM 250 digital altimeter with data acquisition, this option will enable the TBM to fly above 29,000 ft in all RVSM airspace after the 1st quarter of 2004. RVSM equipment, already mandatory in Europe, will be required in North America after January 20th, 2005.

EADS Socata leverages its know-how in the use of composite materials, as well as in metal/composite combination technology and the construction of large-dimension metal panels for aircraft structures.

Thanks to new production tools, EADS Socata meets the requirements of next-generation aircraft designs such as Dassault Falcon 7X and Airbus A380. The first elements manufactured by EADS Socata for the Airbus A380, (the nose lower structure and front gear bay doors), were delivered to Airbus on 28 November 2003.

EADS Socata was also selected in 2003 as Airbus’ industrial partner for the design and manufacture of the sponsons and main gear fairings for the A400M military cargo aircraft. It is a 45-ft (14 m) metal structure item with composite upper panels.

EADS Socata is a global subcontractor for the Embraer Regional Jet 170/190 whose 50th lower fuselage section was delivered in 2003. During 2004, the production rate will increase from 1.5 to 6 items a month.

In August 2003 the EADS Socata’s Tarbes factory also won the contract for the design and manufacturing of the jet engine pylons for the Airbus A318.

These new projects are in addition to EADS Socata’s existing subcontracting activities for Airbus and Eurocopter.

EADS Socata announced at the end of October a new internal organization designed to increase customer satisfaction and improve customer support worldwide. As a result, EADS Socata’s aircraft assembly lines now fall under the responsibility of the Aerostructure and Industrial division, while its General Aviation division has taken over the responsibility of all program management and technical activities as well as EADS Socata’s worldwide Customer Support organization.

Under the new organization, Socata Aircraft, based in South Florida, has expanded its sales and support activities beyond the USA and Canada, to include Latin America.

“These changes are aimed at optimizing the satisfaction of our valued customers and the relationship we have with our partners, as well as reaching our ambitious business objectives,” said Stéphane Mayer, President & CEO of EADS Socata.

EADS has been headquartered at the Paris-Le Bourget airport since 1994. To improve sales efficiency and reduce costs, the decision has been taken to transfer EADS Socata’s management as well as its sales and marketing headquarters to the Tarbes-Lourdes-Pyrenees airport, (the site of the EADS Socata manufacturing facility). The transfer will be effective as March 31, 2004.

EADS is the second largest aerospace and defense company in the world with revenues of € 29.9 billion in the year 2002 and a workforce of more than 100,000. It is a systems integrator and, as such, is one of the few companies worldwide capable of combining various products and technologies to form complete systems. EADS is a market leader in civil aeronautics, defense and security technology, helicopters, launchers, satellites, military transport and combat aircraft and the associated services. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and MBDA, the second largest missile producer in the global market. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo. EADS has over 70 sites in France, Germany, Great Britain and Spain and is active in many regions worldwide, including America, Russia and Asia.

EADS Socata
Aéroport de Tarbes-Lourdes-Pyrénées
65921 Tarbes Cedex 9
France

EADS Socata reserves the right to revise all information contained in this document whenever necessary by product improvements, government regulations or other good cause.