Airbus, BAE to name new U.S. leaders

  • The Washington Post
  • Wednesday, January 8, 2014 2:14pm
  • Business

WASHINGTON — The heads of the U.S. units of two major European defense contractors said Tuesday that they are stepping down, making way for new leadership at a time when defense spending is being cut.

Sean O’Keefe, the chief executive of Airbus Group’s Herndon, Va.-based North American unit, will leave his post in March, the company said Tuesday, while Linda Hudson, chief executive of the U.S. unit of BAE Systems, will cede her role to Gerard DeMuro.

O’Keefe became CEO of the Airbus company, which was previously called EADS North America, in late 2009. The former NASA administrator is departing to “fully address ongoing medical issues” related to a 2010 aircraft accident in Alaska, the company said.

O’Keefe and his son survived the crash, which killed former U.S. senator Ted Stevens, R-Alaska.

O’Keefe said in a statement that he recently underwent another operation related to complications from the crash.

“While the outcome of this latest surgery is positive, it’s evident that the new complications will preclude the devotion of my best efforts to the duties of CEO of Airbus Group, Inc.,” he wrote. “Following reliable medical advice, it is increasingly apparent that I need to focus on a more aggressive rehabilitation regime.”

Airbus said Allan McArtor, chairman of Airbus Americas, Airbus Group’s commercial aircraft division in North and South America, will take over the job. He joined Airbus in 2001 after serving as head of the Federal Aviation Administration, founder of Legend Airlines and an executive at Federal Express, now known as FedEx.

BAE’s Arlington, Va.-based U.S. business has tapped DeMuro, who previously headed General Dynamics’ information-systems business, to become CEO.

DeMuro also spent close to a decade as a Pentagon acquisition official, according to BAE. The company said he was unavailable for an interview.

Hudson will remain an adviser to the company until the end of May to ensure a smooth transition, BAE officials said. She will also remain on the contractor’s board through April 2015.

Both contractors are making substitutions at the top at a time of significant change for their companies.

Starting this year, European Aeronautic Defence and Space — or EADS — was rebranded as Toulouse, France-based Airbus Group. The company now includes Airbus, which focuses on commercial aircraft; Airbus Defense and Space, which combines the Cassidian, Astrium and Airbus Military brands; and Airbus Helicopters, which includes commercial and military helicopter work.

In recent years, the Airbus Group unit — previously known as EADS North America — has struggled to grow its presence. It suffered a key setback in 2011 when it lost a massive deal, ultimately won by Boeing, to build a next-generation aerial refueling tanker.

In 2012, BAE’s London-based parent company sought to merge with what was then known as EADS, but that deal came to a halt after European officials failed to agree on terms.

Under Hudson’s tenure, BAE has divested some lines of business, reorganized the contractor’s structure and opened a shared services center in North Carolina.

She has also led BAE’s expansion of its commercial work, particularly in avionics and shipbuilding.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.