On 29 July 1976, less than a year prior to BAe's formation, the contract for production of the first batch of the Panavia Tornado, an advanced nuclear-capable fighter bomber, was signed.

[12] Aviation author Jon Lake noted that "The Trinational Panavia Consortium produced just short of 1,000 Tornados, making it one of the most successful postwar bomber programs".

The company marketed it as a quiet and economic turbofan-powered compact airliner that could replace the previous generation of turboprop-powered feeder aircraft.

The Avro RJ series also featured a modernised cockpit with EFIS replacing the analogue ADI, HSI, and engine instrumentation.

[22] Following their decisive role in the 1982 Falklands War,[23] several of the lessons learnt from the conflict shaped a new upgrade programme for the fleet authorised in 1984, resulting in the Sea Harrier FRS.2 (later known as FA2).

[31] As time went on, it was becoming clear that Airbus was no longer a temporary collaboration to produce a single design as per its original mission statement; it had become a long-term brand for the development of further aircraft.

[36][37] During the 1983 Paris Air Show, the launch of the Experimental Aircraft Programme (EAP) to develop and fly an advanced fighter technology demonstrator was announced; at this point, the effort was intended to be a partnership between Britain and several of its European neighbours, including West Germany and Italy.

[38][39] The resulting aircraft, the British Aerospace EAP, ended up being primarily developed by BAe as a private venture; it formed the basis for the multinational Eurofighter Typhoon.

[41] The maiden flight of the Eurofighter prototype took place in Bavaria on 27 March 1994, flown by DASA chief test pilot Peter Weger.

The contracts, extended in the 1990s and never fully detailed, involved the supply of Panavia Tornado strike and air defence aircraft, BAe Hawk trainer jets, Rapier missile systems, infrastructure works and naval vessels.

[51] On 25 September 1991 BAe directors led by CEO Richard Evans ousted the Chairman Professor Sir Roland Smith in a move described by The Independent as "one of the most spectacular and brutal boardroom coups witnessed in many years.

In 1994, BAeSEMA, Siemens Plessey and GEC-Marconi formed UKAMS Limited as part of the Principal Anti-Air Missile System (PAAMS) consortium.

In 1995, Saab Military Aircraft and BAe signed an agreement for the joint development and marketing of the export version of the JAS 39 Gripen.

[58][59] In the 1990s, BAe was the largest exporter based in the United Kingdom; a Competition Commission report released in 2005 calculated a ten-year aggregate figure of £45 billion, with defence sales accounting for approximately 80%.

[62] Terms for such a merger had been reportedly agreed between British Aerospace Chairman Richard Evans and DASA CEO Jürgen Schrempp in December 1998.

[65][66] During 2004, Evans stated that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA.

[67] On 14 October 1999, DASA agreed to merge with Aérospatiale-Matra to create the European Aeronautic Defence and Space Company (EADS).

The newly combined company, which was initially referred to as "New British Aerospace", was officially formed on 30 November 1999; it is named BAE Systems.

[70] There have been allegations that the Al Yamamah contracts were a result of bribes ("douceurs") to members of the Saudi royal family and government officials.

Some allegations suggested that the former Prime Minister's son Mark Thatcher may have been involved; he has strongly denied receiving payments or exploiting his mother's connections in his business dealings.

[citation needed] The 2007 documentary film Welcome Aboard Toxic Airlines contained evidence that vital data was withheld from a 1999–2000 Australian Senate Inquiry into the health and flight safety issues relating to oil fumes on the British Aerospace 146.