(Reuters) – Airbus plans to merge two separate fighter jet businesses as part of a broader reorganization of its Defense & Space (ADS) division, according to union sources.

The project plans to bring together the activity of military air systems – which notably includes Airbus’ contribution to the Eurofighter – and that overseeing the group’s participation in the Future Air Combat System (SCAF) developed jointly between France, the Germany and Spain.

Asked about this merger, which is part of the ADS reorganization project called ATOM, an Airbus spokesperson declared: “We are currently discussing details and ideas with our social partners.”

“The transformation could involve some organizational adjustments but the focus is on governance, processes and working methods,” he added.

Despite increased demand for weapons since the start of the conflict in Ukraine, the ADS branch remains the second largest division of Airbus in terms of turnover but the least profitable, behind the aeronautics activities.

(Reporting by Tim Hepher; Blandine Hénault for the , edited by Tangi Salaün)

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