The two aerospace giants have also formed a joint venture company, Paradigm Secure Communications Ltd, to address the "service provision requirements" of the MoD's Skynet 5 programme (see Management Consultancy April 2002).

BAE Systems will control the UK operations of the joint venture, and Paradigm will contract with Astrium for the manufacture and provision of satellites and ground systems.

The sale of BAE System's stake in Astrium depends on the finalisation of the MoD's Skynet 5 contract with Paradigm, expected around the end of 2002.