BAE Systems has around 1,400 workers at its Rochester plant

by business editor Trevor Sturgess

Bosses of BAE Systems and EADS insist the proposed merger
is about growth, not contraction, and should be good for jobs.

Ian King, chief executive of BAE, the defence specialist with a
plant in Rochester, and Tom Enders, chief executive of Airbus
manufacturer and civil aviation business EADS, attempt to
counter gloomy assessments of the proposal by writing in today's
Financial Times to "correct some myths and misconceptions".

BAE has already told KentOnline that 1,400 employees at its Rochester plant need not worry about jobs because there are no overlaps between the businesses.

However, commentators have warned "efficiencies" sought in
any merger would inevitably lead to job cuts.

King and Enders say: "Clearly, there will be scope for
efficiency savings when two companies of our size come together,
but great benefit will derive from our ability to exploit new
business opportunities. That has to be good for jobs and economic
prosperity in the long term."

They claim both could progress as independent companies, but the
proposal was "borne out of opportunity, not necessity".

The pair say "there comes time when it is right to
seize the moment and to create something that is even stronger and
better. We believe that time is now.

"With the necessary political will and support, management
determination, and proper governance, BAE Systems and EADS can
produce a whole that is greater than the sum of its parts.
Together, we would become a business with a global footprint, and a
wider customer base.

"We would be able better ride the cycles of civil aviation
demand and defence spending. And we would be a business with the
scale and stability to invest more in R&D, and a force for
greater competition and growth. All of this would deliver tangible
benefits to our customers in each of the defence, aerospace and
security worlds."

They add: "The rationale that drives this transaction is growth,
not contraction. BAE Systems and EADS operate in complementary
markets. It would also mean that we can ensure our key markets stay
at the cutting edge of technological development."

A combination of world class management, technology, investment
capability and customer access would benefit all stakeholders, King
and Enders conclude.