The name of a merged EADS and BAE group might be Airbus, according to a report in the Financial Times.
The proposal for taking the name of the EADS unit has been mooted by the company despite the suggestion that such a name could inflame tensions with both the US and Britain, the paper reported.
The French group has apparently suggested that the combined HQ should be in the UK to help assuage such sensitivities.
However, the report says, BAE has opposed using the Airbus name as it would not be welcome in the US where Airbus is the biggest rival to Boeing.
The report quotes an unnamed senior executive as saying: “This [the Airbus name] would be anathema to a lot of Americans.”